Question 1

Economic freedom is present, at least in part, when

Accepted Answer

A)  there are no property rights to limit people's freedom. 
B)  there is no private property. 
C)  people are able to make personal choices. 
D)  there is no government. 
E)  money is free. 
A)  there are no property rights to limit people's freedom. 
B)  there is no private property. 
C)  people are able to make personal choices. 
D)  there is no government. 
E)  money is free.

Question 2

A basic precondition necessary to achieve economic growth is

Accepted Answer

A)  well-functioning factories. 
B)  well-being of society. 
C)  a well-functioning legal system. 
D)  a well-organized work force. 
E)  a strong central government that directs the nation's research and development activities. 
A)  well-functioning factories. 
B)  well-being of society. 
C)  a well-functioning legal system. 
D)  a well-organized work force. 
E)  a strong central government that directs the nation's research and development activities.

Question 3

If aggregate hours are 100 billion hours and labor productivity is $40 an hour, than real GDP equals

Accepted Answer

A)  $100 billion. 
B)  $40 billion. 
C)  $100 trillion. 
D)  $2.5 trillion. 
E)  $4 trillion. 
A)  $100 billion. 
B)  $40 billion. 
C)  $100 trillion. 
D)  $2.5 trillion. 
E)  $4 trillion.

Question 4

$$\begin{array} { c c c } 
& \begin{array} { c } 
\text { Employment } \
\text { Year }
\end{array} & \begin{array} { c } 
\text { Real GDP } \
\text { (millions of people) (billions of 2005 francs) }
\end{array} \
\hline 1998 & 58.85 & 8,243.9 \
1997 & 58.61 & 7,992.2 \
\hline
\end{array}$$
-Suppose that in the future, real GDP per person grows 2 percent a year in the United States and 4 percent a year in China.It will take real GDP per person approximately ________ years to double in the United States and approximately ________ years to double in China.

Accepted Answer

A)  70; 35 
B)  35; 17.5 
C)  35; 8.75 
D)  50; 25 
E)  20; 10 
A)  70; 35 
B)  35; 17.5 
C)  35; 8.75 
D)  50; 25 
E)  20; 10

Question 5

In the neoclassical growth theory, technological advances are the result of ________ and in the new growth theory, technological advances are the result of ________.

Accepted Answer

A)  chance; chance 
B)  chance; people's decisions 
C)  people's decisions; chance 
D)  people's decisions; people's decisions 
E)  government funding; competition 
A)  chance; chance 
B)  chance; people's decisions 
C)  people's decisions; chance 
D)  people's decisions; people's decisions 
E)  government funding; competition

Question 6

A key reason why some nations show little or no growth is

Accepted Answer

A)  overpopulation that overuses limited resources. 
B)  lack of incentives to undertake actions toward growth. 
C)  too much private property not directed by the government. 
D)  patents in rich nations that keep technology only for the rich. 
E)  too much international trade so that all economic growth spills over to foreigners. 
A)  overpopulation that overuses limited resources. 
B)  lack of incentives to undertake actions toward growth. 
C)  too much private property not directed by the government. 
D)  patents in rich nations that keep technology only for the rich. 
E)  too much international trade so that all economic growth spills over to foreigners.

Question 7

Suppose India wants to measure how much the standard of living has changed over the last decade. Which piece of data should India use?

Accepted Answer

A)  population. 
B)  real GDP per person. 
C)  real GDP. 
D)  wages. 
E)  inflation. 
A)  population. 
B)  real GDP per person. 
C)  real GDP. 
D)  wages. 
E)  inflation.

Question 8

Canada's population is 31 million and Japan's population is 126 million.Labor productivity in the two nations is the same.Hence, real GDP per person is ________ and real GDP is ________.

Accepted Answer

A)  higher in Japan; larger in Japan 
B)  higher in Canada; larger in Canada 
C)  the same in Japan and Canada; larger in Japan 
D)  higher in Japan; the same in Japan and Canada 
E)  higher in Japan; larger in Canada 
A)  higher in Japan; larger in Japan 
B)  higher in Canada; larger in Canada 
C)  the same in Japan and Canada; larger in Japan 
D)  higher in Japan; the same in Japan and Canada 
E)  higher in Japan; larger in Canada

Question 9

If real GDP grows at a faster rate than does population, then the standard of living, as measured by real GDP per person,

Accepted Answer

A)  improves. 
B)  worsens. 
C)  remains the same. 
D)  cannot be measured. 
E)  either improves, worsens, or stays the same, depending on the size of the population and the actual level of real GDP. 
A)  improves. 
B)  worsens. 
C)  remains the same. 
D)  cannot be measured. 
E)  either improves, worsens, or stays the same, depending on the size of the population and the actual level of real GDP.

Question 10

Growth in the standard of living is measured by the increase in

Accepted Answer

A)  real GDP. 
B)  the Rule of 70. 
C)  employment. 
D)  real GDP per person. 
E)  consumption. 
A)  real GDP. 
B)  the Rule of 70. 
C)  employment. 
D)  real GDP per person. 
E)  consumption.

Question 11

Which of the following is NOT a necessary precondition for economic growth?

Accepted Answer

A)  economic freedom 
B)  democracy 
C)  property rights 
D)  free markets 
E)  ALL of the above are necessary preconditions. 
A)  economic freedom 
B)  democracy 
C)  property rights 
D)  free markets 
E)  ALL of the above are necessary preconditions.

Question 12

$$\begin{array} { c c c } 
& \begin{array} { c } 
\text { Employment } \
\text { Year }
\end{array} & \begin{array} { c } 
\text { Real GDP } \
\text { (millions of people) (billions of 2005 francs) }
\end{array} \
\hline 1998 & 58.85 & 8,243.9 \
1997 & 58.61 & 7,992.2 \
\hline
\end{array}$$
-If real GDP increases by 6 percent and at the same time the population increases by 2 percent, then real GDP per person grows by

Accepted Answer

A)  6 percent. 
B)  4 percent. 
C)  2 percent. 
D)  8 percent. 
E)  3 percent. 
A)  6 percent. 
B)  4 percent. 
C)  2 percent. 
D)  8 percent. 
E)  3 percent.

Question 13

According to the new growth theory, real GDP per person grows because

Accepted Answer

A)  the population increases. 
B)  the labor force participation rate increases. 
C)  people make choices in pursuit of profits. 
D)  the retirement age increases. 
E)  the government subsidizes firms' research and development. 
A)  the population increases. 
B)  the labor force participation rate increases. 
C)  people make choices in pursuit of profits. 
D)  the retirement age increases. 
E)  the government subsidizes firms' research and development.

Question 14

Economic freedom provides the

Accepted Answer

A)  political system that encourages democracy. 
B)  social system that supports families. 
C)  production system that discourages property rights. 
D)  incentive system that encourages growth-producing activities. 
E)  necessary alternative to free markets. 
A)  political system that encourages democracy. 
B)  social system that supports families. 
C)  production system that discourages property rights. 
D)  incentive system that encourages growth-producing activities. 
E)  necessary alternative to free markets.

Question 15

East Asian economies have grown

Accepted Answer

A)  rapidly because of high saving rates. 
B)  rapidly despite a lack of property rights. 
C)  slowly because of a lack of property rights. 
D)  slowly because of low saving rates. 
E)  rapidly because they virtually eliminated international trade. 
A)  rapidly because of high saving rates. 
B)  rapidly despite a lack of property rights. 
C)  slowly because of a lack of property rights. 
D)  slowly because of low saving rates. 
E)  rapidly because they virtually eliminated international trade.

Question 16

$$\begin{array}{l}
\text { Real GDP }\
\begin{array} { c c } 
\text { Year } & \text { (trillions of 2005 yen) } \
\hline 1997 & 484 \
1996 & 480 \
\hline
\end{array}
\end{array}$$
-The table gives information about the economy of Japan.The economic growth rate in 1997 is ________ percent.

Accepted Answer

A)  8.0 
B)  0.8 
C)  0.08 
D)  0.008 
E)  4 
A)  8.0 
B)  0.8 
C)  0.08 
D)  0.008 
E)  4

Question 17

Real GDP in the country of Oz is growing at 5 percent and its population is growing at 2 percent.In the country of Lilliput, real GDP is growing at 4 percent and its population is growing at 0.5 percent.Thus,

Accepted Answer

A)  real GDP per person in Oz is growing at a faster rate than in Lilliput. 
B)  real GDP per person in Lilliput is growing at a faster rate than in Oz. 
C)  real GDP per person in Lilliput is growing at the same rate as in Oz. 
D)  real GDP per person in Lilliput is growing at a rate that is not comparable to that in Oz. 
E)  we need more information to determine if real GDP per person in Lilliput is growing faster or slower than real GDP per person in Oz. 
A)  real GDP per person in Oz is growing at a faster rate than in Lilliput. 
B)  real GDP per person in Lilliput is growing at a faster rate than in Oz. 
C)  real GDP per person in Lilliput is growing at the same rate as in Oz. 
D)  real GDP per person in Lilliput is growing at a rate that is not comparable to that in Oz. 
E)  we need more information to determine if real GDP per person in Lilliput is growing faster or slower than real GDP per person in Oz.

Question 18

In India last year, the growth rate of real GDP was 3.5 percent and the population grew from 1,000 million people to 1,100 million.Real GDP per person

Accepted Answer

A)  increased by 13.5 percent. 
B)  decreased by 6.5 percent. 
C)  increased by 6.5 percent. 
D)  decreased by 13.5 percent. 
E)  increased by 3.5 percent. 
A)  increased by 13.5 percent. 
B)  decreased by 6.5 percent. 
C)  increased by 6.5 percent. 
D)  decreased by 13.5 percent. 
E)  increased by 3.5 percent.

Question 19

The classical growth model is most closely associated with

Accepted Answer

A)  John Maynard Keynes. 
B)  Ben Bernanke. 
C)  Adam Smith. 
D)  Robert Solow. 
E)  Thomas Malthus. 
A)  John Maynard Keynes. 
B)  Ben Bernanke. 
C)  Adam Smith. 
D)  Robert Solow. 
E)  Thomas Malthus.

Question 20

________ developed the neoclassical growth theory and proposed that ________ will drive economic growth.

Accepted Answer

A)  Robert Solow; increases in technology 
B)  Thomas Malthus; increases in technology 
C)  Adam Smith; population growth 
D)  Robert Solow; population growth 
E)  Thomas Malthus; increases in capital per worker 
A)  Robert Solow; increases in technology 
B)  Thomas Malthus; increases in technology 
C)  Adam Smith; population growth 
D)  Robert Solow; population growth 
E)  Thomas Malthus; increases in capital per worker

Economic freedom is present, at least in part, when

A basic precondition necessary to achieve economic growth is

If aggregate hours are 100 billion hours and labor productivity is $40 an hour, than real GDP equals

In the neoclassical growth theory, technological advances are the result of and in the new growth theory, technological advances are the result of .

A key reason why some nations show little or no growth is

Suppose India wants to measure how much the standard of living has changed over the last decade. Which piece of data should India use?

Canada's population is 31 million and Japan's population is 126 million.Labor productivity in the two nations is the same.Hence, real GDP per person is and real GDP is .

If real GDP grows at a faster rate than does population, then the standard of living, as measured by real GDP per person,

Growth in the standard of living is measured by the increase in

Which of the following is NOT a necessary precondition for economic growth?

Employment Year Real GDP (millions of people) (billions of 2005 francs) 1998 58.85 8,243.9 1997 58.61 7,992.2 -If real GDP increases by 6 percent and at the same time the population increases by 2 percent, then real GDP per person grows by

According to the new growth theory, real GDP per person grows because

Economic freedom provides the

East Asian economies have grown

Real GDP Year (trillions of 2005 yen) 1997 484 1996 480 -The table gives information about the economy of Japan.The economic growth rate in 1997 is ________ percent.

Real GDP in the country of Oz is growing at 5 percent and its population is growing at 2 percent.In the country of Lilliput, real GDP is growing at 4 percent and its population is growing at 0.5 percent.Thus,

In India last year, the growth rate of real GDP was 3.5 percent and the population grew from 1,000 million people to 1,100 million.Real GDP per person

The classical growth model is most closely associated with

developed the neoclassical growth theory and proposed that will drive economic growth.

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and the Natural Unemployment Rate

Finance, Saving, and Investment

The Monetary System

Money, Interest, and Inflation

Aggregate Supply and Aggregate Demand

Aggregate Expenditure Multiplier

The Short-Run Policy Tradeoff

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters

Exam 9: Economic Growth

Economic freedom is present, at least in part, when

A basic precondition necessary to achieve economic growth is

If aggregate hours are 100 billion hours and labor productivity is $40 an hour, than real GDP equals

In the neoclassical growth theory, technological advances are the result of ________ and in the new growth theory, technological advances are the result of ________.

A key reason why some nations show little or no growth is

Suppose India wants to measure how much the standard of living has changed over the last decade. Which piece of data should India use?

Canada's population is 31 million and Japan's population is 126 million.Labor productivity in the two nations is the same.Hence, real GDP per person is ________ and real GDP is ________.

If real GDP grows at a faster rate than does population, then the standard of living, as measured by real GDP per person,

Growth in the standard of living is measured by the increase in

Which of the following is NOT a necessary precondition for economic growth?

Employment Year Real GDP (millions of people) (billions of 2005 francs) 1998 58.85 8,243.9 1997 58.61 7,992.2 -If real GDP increases by 6 percent and at the same time the population increases by 2 percent, then real GDP per person grows by

According to the new growth theory, real GDP per person grows because

Economic freedom provides the

East Asian economies have grown

Real GDP Year (trillions of 2005 yen) 1997 484 1996 480 -The table gives information about the economy of Japan.The economic growth rate in 1997 is ________ percent.

Real GDP in the country of Oz is growing at 5 percent and its population is growing at 2 percent.In the country of Lilliput, real GDP is growing at 4 percent and its population is growing at 0.5 percent.Thus,

In India last year, the growth rate of real GDP was 3.5 percent and the population grew from 1,000 million people to 1,100 million.Real GDP per person

The classical growth model is most closely associated with

________ developed the neoclassical growth theory and proposed that ________ will drive economic growth.

Getting Started

The Usand Global Economies

The Economic Problem

Demand and Supply

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and the Natural Unemployment Rate

Finance, Saving, and Investment

The Monetary System

Money, Interest, and Inflation

Aggregate Supply and Aggregate Demand

Aggregate Expenditure Multiplier

The Short-Run Policy Tradeoff

Fiscal Policy

Monetary Policy

International Trade Policy

International Finance

Filters

In the neoclassical growth theory, technological advances are the result of and in the new growth theory, technological advances are the result of .

Canada's population is 31 million and Japan's population is 126 million.Labor productivity in the two nations is the same.Hence, real GDP per person is and real GDP is .

developed the neoclassical growth theory and proposed that will drive economic growth.