Question 1

What is the measure most commonly used by economists to gauge the standard of living of a nation?

Accepted Answer

A) capital investment 
B) labour productivity 
C) real GDP per capita 
D) real GDP 
A) capital investment 
B) labour productivity 
C) real GDP per capita 
D) real GDP

Question 2

When observing economic growth and literacy rates,which of the following does NOT describe the relationship between the two?

Accepted Answer

A) Increases in worker productivity lead to higher levels of education. 
B) Higher literacy rates cause economic growth. 
C) Economic growth may be a consequence of improved education. 
D) Economic growth causes higher literacy rates. 
A) Increases in worker productivity lead to higher levels of education. 
B) Higher literacy rates cause economic growth. 
C) Economic growth may be a consequence of improved education. 
D) Economic growth causes higher literacy rates.

Question 3

Free trade can promote greater output because of the principle of comparative advantage.

Accepted Answer

A) True 
 B)False

Question 4

What annual growth rate will result in a country roughly doubling its GDP in five years?

Accepted Answer

A) 5 percent 
B) 7 percent 
C) 12 percent 
D) 14 percent 
A) 5 percent 
B) 7 percent 
C) 12 percent 
D) 14 percent

Question 5

Which of the following will NOT increase the rate of growth in an economy?

Accepted Answer

A) an increase in labour productivity 
B) technological progress 
C) higher rates of investment 
D) a reduction in the rate of savings 
A) an increase in labour productivity 
B) technological progress 
C) higher rates of investment 
D) a reduction in the rate of savings

Question 6

Increases in the quality and quantity of an economy's resources have little effect on its potential output in the long run.

Accepted Answer

A) True 
 B)False

Question 7

According to the rule of 70,if a nation grows at a rate of 2 percent per year,in roughly how many years will national income double?

Accepted Answer

A) 2 years 
B) 7 years 
C) 10 years 
D) 35 years 
A) 2 years 
B) 7 years 
C) 10 years 
D) 35 years

Question 8

What is the best way to measure economics growth?

Accepted Answer

A) by the annual percentage change in nominal GDP 
B) by the annual percentage change in nominal GDP per capita 
C) by the annual percentage change in real GDP per capita 
D) by the annual percentage change in real GDP 
A) by the annual percentage change in nominal GDP 
B) by the annual percentage change in nominal GDP per capita 
C) by the annual percentage change in real GDP per capita 
D) by the annual percentage change in real GDP

Question 9

Hong Kong and Japan have achieved relatively high incomes per capita despite lacking an abundance of natural resources.

Accepted Answer

A) True 
 B)False

Question 10

How can increased investment help a country achieve increased economic growth? What are the costs involved?

Accepted Answer

Countries can profit from investment in

Question 11

It is impossible to have economic growth unless a country or a region has abundant natural resources to sustain the growth.

Accepted Answer

A) True 
 B)False

Question 12

In a fully employed economy,which of the following best describes invention and discovery?

Accepted Answer

A) They are achieved through sacrifices in current consumption. 
B) They have negative opportunity costs. 
C) They cannot be achieved without further economic growth. 
D) They are automatic. 
A) They are achieved through sacrifices in current consumption. 
B) They have negative opportunity costs. 
C) They cannot be achieved without further economic growth. 
D) They are automatic.

Question 13

How is a decrease in economic growth illustrated on a production possibilities diagram?

Accepted Answer

A) an inward shift of an economy's production possibilities curve 
B) a slowing in the outward shift of an economy's production possibilities curve 
C) an upward slope in an economy's production possibilities curve 
D) a movement from a point inside an economy's production possibilities curve to a point on the curve 
A) an inward shift of an economy's production possibilities curve 
B) a slowing in the outward shift of an economy's production possibilities curve 
C) an upward slope in an economy's production possibilities curve 
D) a movement from a point inside an economy's production possibilities curve to a point on the curve

Question 14

Which of the following is generally NOT considered a factor that contributes to economic growth?

Accepted Answer

A) technological advances 
B) increased labour 
C) the migration of resources from areas of low productivity to areas of high productivity 
D) increased labour productivity 
A) technological advances 
B) increased labour 
C) the migration of resources from areas of low productivity to areas of high productivity 
D) increased labour productivity

Question 15

What annual growth rate will result in a country roughly doubling its GDP in ten years?

Accepted Answer

A) 5 percent 
B) 7 percent 
C) 10 percent 
D) 12 percent 
A) 5 percent 
B) 7 percent 
C) 10 percent 
D) 12 percent

Question 16

Other things being equal,what is the impact of a higher rate of savings across countries?

Accepted Answer

A) a lower rate of change of real GDP per capita 
B) a higher rate of change of real GDP per capita 
C) a lower rate of investment 
D) a lower productivity of labour 
A) a lower rate of change of real GDP per capita 
B) a higher rate of change of real GDP per capita 
C) a lower rate of investment 
D) a lower productivity of labour

Question 17

Many scholars believe that the importance of research and development is understated.Which of the following is included in research and development efforts?

Accepted Answer

A) improvements to management 
B) foreign trade 
C) increased use of unemployed resources 
D) reallocation of resources among different products 
A) improvements to management 
B) foreign trade 
C) increased use of unemployed resources 
D) reallocation of resources among different products

Question 18

What is needed for a low-income country to develop into a high-income country?

Accepted Answer

A) tax breaks on consumption goods 
B) continuous economic expansion 
C) a sustained and rapid expansion in the money supply 
D) deflation 
A) tax breaks on consumption goods 
B) continuous economic expansion 
C) a sustained and rapid expansion in the money supply 
D) deflation

Question 19

If the educational attainment of a nation's population increases,the economy's production possibilities curve shifts inward.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is likely to occur as a result of falling incomes?

Accepted Answer

A) Reduced incomes will lead to reduced savings and, as a result, a reduction in capital formation. 
B) Reduced incomes will lead to a decrease in spending on consumption but an increased spending on research and development. 
C) Reduced incomes will result in a decrease in the availability of labour inputs for production. 
D) Reduced incomes will lead to increased savings and, as a result, an increase in capital formation. 
A) Reduced incomes will lead to reduced savings and, as a result, a reduction in capital formation. 
B) Reduced incomes will lead to a decrease in spending on consumption but an increased spending on research and development. 
C) Reduced incomes will result in a decrease in the availability of labour inputs for production. 
D) Reduced incomes will lead to increased savings and, as a result, an increase in capital formation.

What is the measure most commonly used by economists to gauge the standard of living of a nation?

When observing economic growth and literacy rates,which of the following does NOT describe the relationship between the two?

Free trade can promote greater output because of the principle of comparative advantage.

What annual growth rate will result in a country roughly doubling its GDP in five years?

Which of the following will NOT increase the rate of growth in an economy?

Increases in the quality and quantity of an economy's resources have little effect on its potential output in the long run.

According to the rule of 70,if a nation grows at a rate of 2 percent per year,in roughly how many years will national income double?

What is the best way to measure economics growth?

Hong Kong and Japan have achieved relatively high incomes per capita despite lacking an abundance of natural resources.

How can increased investment help a country achieve increased economic growth? What are the costs involved?

It is impossible to have economic growth unless a country or a region has abundant natural resources to sustain the growth.

In a fully employed economy,which of the following best describes invention and discovery?

How is a decrease in economic growth illustrated on a production possibilities diagram?

Which of the following is generally NOT considered a factor that contributes to economic growth?

What annual growth rate will result in a country roughly doubling its GDP in ten years?

Other things being equal,what is the impact of a higher rate of savings across countries?

Many scholars believe that the importance of research and development is understated.Which of the following is included in research and development efforts?

What is needed for a low-income country to develop into a high-income country?

If the educational attainment of a nation's population increases,the economy's production possibilities curve shifts inward.

Which of the following is likely to occur as a result of falling incomes?

The Role and Method of Economics

Scarcity, trade-Offs, and Production Possibilities

Supply and Demand

Bringing Supply and Demand Together

Introduction to the Macroeconomy

Measuring Economic Performance

Aggregate Demand

Aggregate Supply and Macroeconomic Equilibrium

Fiscal Policy

Money and the Banking System

The Bank of Canada

Monetary Policy

International Trade

International Finance

Filters

Exam 7: Economic Growth in the Global Economy

What is the measure most commonly used by economists to gauge the standard of living of a nation?

When observing economic growth and literacy rates,which of the following does NOT describe the relationship between the two?

Free trade can promote greater output because of the principle of comparative advantage.

What annual growth rate will result in a country roughly doubling its GDP in five years?

Which of the following will NOT increase the rate of growth in an economy?

Increases in the quality and quantity of an economy's resources have little effect on its potential output in the long run.

According to the rule of 70,if a nation grows at a rate of 2 percent per year,in roughly how many years will national income double?

What is the best way to measure economics growth?

Hong Kong and Japan have achieved relatively high incomes per capita despite lacking an abundance of natural resources.

How can increased investment help a country achieve increased economic growth? What are the costs involved?

It is impossible to have economic growth unless a country or a region has abundant natural resources to sustain the growth.

In a fully employed economy,which of the following best describes invention and discovery?

How is a decrease in economic growth illustrated on a production possibilities diagram?

Which of the following is generally NOT considered a factor that contributes to economic growth?

What annual growth rate will result in a country roughly doubling its GDP in ten years?

Other things being equal,what is the impact of a higher rate of savings across countries?

Many scholars believe that the importance of research and development is understated.Which of the following is included in research and development efforts?

What is needed for a low-income country to develop into a high-income country?

If the educational attainment of a nation's population increases,the economy's production possibilities curve shifts inward.

Which of the following is likely to occur as a result of falling incomes?

The Role and Method of Economics

Scarcity, trade-Offs, and Production Possibilities

Supply and Demand

Bringing Supply and Demand Together

Introduction to the Macroeconomy

Measuring Economic Performance

Aggregate Demand

Aggregate Supply and Macroeconomic Equilibrium

Fiscal Policy

Money and the Banking System

The Bank of Canada

Monetary Policy

International Trade

International Finance

Filters