Question 1

What will cause the standard of living to decline?

Accepted Answer

A) if the rate of population growth is less than the rate of growth of real GDP 
B) if the nominal GDP grows at a slower rate than real GDP 
C) if the rate of population growth exceeds the rate of growth of real GDP 
D) if the nominal GDP grows at a faster rate than real GDP 
A) if the rate of population growth is less than the rate of growth of real GDP 
B) if the nominal GDP grows at a slower rate than real GDP 
C) if the rate of population growth exceeds the rate of growth of real GDP 
D) if the nominal GDP grows at a faster rate than real GDP

Question 2

According to the rule of 70,if a nation's economy grows at a rate of 5 percent per year,in roughly how many years will national income double?

Accepted Answer

A) 10 years 
B) 14 years 
C) 20 years 
D) 70 years 
A) 10 years 
B) 14 years 
C) 20 years 
D) 70 years

Question 3

Which of the following does NOT describe an investment in human capital?

Accepted Answer

A) It is of minor importance to economic growth. 
B) It can be acquired through on-the-job training. 
C) It can be acquired through education. 
D) It is an important source of economic growth. 
A) It is of minor importance to economic growth. 
B) It can be acquired through on-the-job training. 
C) It can be acquired through education. 
D) It is an important source of economic growth.

Question 4

Which of the following is NOT likely to affect the rate of economic growth?

Accepted Answer

A) technological change 
B) the level of government spending 
C) the quantity of available resources 
D) the quality of available resources 
A) technological change 
B) the level of government spending 
C) the quantity of available resources 
D) the quality of available resources

Question 5

What correlates with a faster rate of technological progress?

Accepted Answer

A) a slower rate of growth of the money supply 
B) a greater rate of economic growth 
C) a slower rate of economic growth 
D) a greater rate of population growth 
A) a slower rate of growth of the money supply 
B) a greater rate of economic growth 
C) a slower rate of economic growth 
D) a greater rate of population growth

Question 6

What is another term for how much a country's economy will produce at its potential output?

Accepted Answer

A) the trough of the business cycle 
B) the trend line 
C) a country's economic welfare 
D) the natural level of output 
A) the trough of the business cycle 
B) the trend line 
C) a country's economic welfare 
D) the natural level of output

Question 7

In which direction will improvements in and greater stocks of land,labour,capital,and entrepreneurial activity shift the production possibilities curve?

Accepted Answer

A) Inward, such that the marketplace experiences a decrease in price and output levels. 
B) Inward, because more resources will be used up and not renewed. 
C) Outward, such that the cost of living rises. 
D) Outward, such that more goods and services can be produced. 
A) Inward, such that the marketplace experiences a decrease in price and output levels. 
B) Inward, because more resources will be used up and not renewed. 
C) Outward, such that the cost of living rises. 
D) Outward, such that more goods and services can be produced.

Question 8

What should a nation do to achieve a high standard of living?

Accepted Answer

A) increase the tax deduction for child dependents 
B) promote economic growth 
C) use less capital and more labour in the production process 
D) increase welfare payments to the poor 
A) increase the tax deduction for child dependents 
B) promote economic growth 
C) use less capital and more labour in the production process 
D) increase welfare payments to the poor

Question 9

Which of the following statements about economic growth is the most accurate?

Accepted Answer

A) It is the annual percentage change in real GDP. 
B) It is the annual percentage change in nominal GDP. 
C) It is the annual percentage change in per capita real GDP. 
D) It is the annual percentage change in disposable income. 
A) It is the annual percentage change in real GDP. 
B) It is the annual percentage change in nominal GDP. 
C) It is the annual percentage change in per capita real GDP. 
D) It is the annual percentage change in disposable income.

Question 10

Government can play an essential,even crucial,role in economic growth by enforcing property rights.

Accepted Answer

A) True 
 B)False

Question 11

Brazil has a relatively low income per capita because it has relatively few natural resources.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is NOT associated with changes in the growth rate of real GDP per capita?

Accepted Answer

A) changes in the total production of final goods in the economy 
B) changes in the size of the population 
C) changes in the distribution of income 
D) changes in the production of final services in the economy 
A) changes in the total production of final goods in the economy 
B) changes in the size of the population 
C) changes in the distribution of income 
D) changes in the production of final services in the economy

Question 13

As savings grow in an economy,economic growth rises.

Accepted Answer

A) True 
 B)False

Question 14

The Canada Education Savings Grant (CESG)is a federal government grant designed to encourage post-secondary education.Using a production possibilities curve,demonstrate how the CESG might affect economic growth and explain your answer.

Accepted Answer

Implementation of the CESG shifted Canad

Question 15

An increase in the quantity of labour inputs always leads to economic growth.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) high interest rates 
B) sustained economic growth 
C) high rates of inflation 
D) restrictions on international trade 
A) high interest rates 
B) sustained economic growth 
C) high rates of inflation 
D) restrictions on international trade

What will cause the standard of living to decline?

According to the rule of 70,if a nation's economy grows at a rate of 5 percent per year,in roughly how many years will national income double?

Which of the following does NOT describe an investment in human capital?

Which of the following is NOT likely to affect the rate of economic growth?

What correlates with a faster rate of technological progress?

What is another term for how much a country's economy will produce at its potential output?

In which direction will improvements in and greater stocks of land,labour,capital,and entrepreneurial activity shift the production possibilities curve?

What should a nation do to achieve a high standard of living?

Which of the following statements about economic growth is the most accurate?

Government can play an essential,even crucial,role in economic growth by enforcing property rights.

Brazil has a relatively low income per capita because it has relatively few natural resources.

Which of the following is NOT associated with changes in the growth rate of real GDP per capita?

As savings grow in an economy,economic growth rises.

The Canada Education Savings Grant (CESG)is a federal government grant designed to encourage post-secondary education.Using a production possibilities curve,demonstrate how the CESG might affect economic growth and explain your answer.

An increase in the quantity of labour inputs always leads to economic growth.

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

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 will cause the standard of living to decline?

According to the rule of 70,if a nation's economy grows at a rate of 5 percent per year,in roughly how many years will national income double?

Which of the following does NOT describe an investment in human capital?

Which of the following is NOT likely to affect the rate of economic growth?

What correlates with a faster rate of technological progress?

What is another term for how much a country's economy will produce at its potential output?

In which direction will improvements in and greater stocks of land,labour,capital,and entrepreneurial activity shift the production possibilities curve?

What should a nation do to achieve a high standard of living?

Which of the following statements about economic growth is the most accurate?

Government can play an essential,even crucial,role in economic growth by enforcing property rights.

Brazil has a relatively low income per capita because it has relatively few natural resources.

Which of the following is NOT associated with changes in the growth rate of real GDP per capita?

As savings grow in an economy,economic growth rises.

The Canada Education Savings Grant (CESG)is a federal government grant designed to encourage post-secondary education.Using a production possibilities curve,demonstrate how the CESG might affect economic growth and explain your answer.

An increase in the quantity of labour inputs always leads to economic growth.

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

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