Question 1

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 2

Ultimately,productivity growth is the major determinant of a country's standard of living

Accepted Answer

A) True 
 B)False

Question 3

Higher levels of savings will result in all of following except:

Accepted Answer

A)  greater economic growth. 
B)  higher capital formation. 
C)  more consumption in the future. 
D)  lower rates of investment. 
A)  greater economic growth. 
B)  higher capital formation. 
C)  more consumption in the future. 
D)  lower rates of investment.

Question 4

Malthus's gloomy economic outlook for humankind is based on the following principle:

Accepted Answer

A)  Population, when unchecked, increases at a faster pace than the production of output. 
B)  Population grows at a slower pace than the production of output. 
C)  Resources grow faster than humankind can reproduce itself. Therefore, humankind can never take full advantage of available resources. 
D)  Resources and population grow at constant percentage rates, but political divisions prevent an equitable division of world output. 
A)  Population, when unchecked, increases at a faster pace than the production of output. 
B)  Population grows at a slower pace than the production of output. 
C)  Resources grow faster than humankind can reproduce itself. Therefore, humankind can never take full advantage of available resources. 
D)  Resources and population grow at constant percentage rates, but political divisions prevent an equitable division of world output.

Question 5

Which of the following is true?

Accepted Answer

A)  The Rule of 70 says that the number of years necessary for a nation to double its output is approximately equal to the nation's growth rate divided by 70. 
B)  Economic growth is usually measured by the annual percent change in the nominal output of goods and services per capita. 
C)  An increase in labor input necessarily increases output per capita. 
D)  Neither the initial development process nor the sustained growth of an economy is dependent on a large natural resource base. 
A)  The Rule of 70 says that the number of years necessary for a nation to double its output is approximately equal to the nation's growth rate divided by 70. 
B)  Economic growth is usually measured by the annual percent change in the nominal output of goods and services per capita. 
C)  An increase in labor input necessarily increases output per capita. 
D)  Neither the initial development process nor the sustained growth of an economy is dependent on a large natural resource base.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

If people began to retire at a later age and there was an increase in the capital stock,real GDP growth would ____ and real GDP growth per capita would ____.

Accepted Answer

A)  increase; increase. 
B)  increase; be indeterminate. 
C)  decrease; decrease. 
D)  decrease; be indeterminate 
A)  increase; increase. 
B)  increase; be indeterminate. 
C)  decrease; decrease. 
D)  decrease; be indeterminate

Question 8

If a country's annual growth rate is 2%,then its output will double in approximately ____ years.

Accepted Answer

A)  2 
B)  10 
C)  25 
D)  35 
A)  2 
B)  10 
C)  25 
D)  35

Question 9

If productivity of an economy increases then:

Accepted Answer

A)  the amount of goods and services produced by a worker per hour increases. 
B)  the labor force increases. 
C)  the real GDP per capita decreases. 
D)  the labor force decreases. 
A)  the amount of goods and services produced by a worker per hour increases. 
B)  the labor force increases. 
C)  the real GDP per capita decreases. 
D)  the labor force decreases.

Question 10

The faster the rate of technological progress:

Accepted Answer

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

Question 11

Real output per capita:

Accepted Answer

A)  is measured by real GDP per capita. 
B)  is total real output ( real GDP) divided by the number of persons among whom it will be distributed. 
C)  is one measure of the average level of economic well being in a country. 
D)  all of the above are correct. 
A)  is measured by real GDP per capita. 
B)  is total real output ( real GDP) divided by the number of persons among whom it will be distributed. 
C)  is one measure of the average level of economic well being in a country. 
D)  all of the above are correct.

Question 12

Capital formation is a key component of economic growth.

Accepted Answer

A) True 
 B)False

Question 13

For a low-income country to develop into a high-income country,____ is (are)needed.

Accepted Answer

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

Question 14

An increase in growth rates will cause:

Accepted Answer

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

Question 15

Exhibit 20-1   Refer to Exhibit 20-1.Which nation enjoys the highest growth rate?

Accepted Answer

A)  Nation A 
B)  Nation B 
C)  Nation C 
D)  Nation D 
A)  Nation A 
B)  Nation B 
C)  Nation C 
D)  Nation D

Question 16

Which of the following was not one of Malthus assumptions?

Accepted Answer

A)  stable prices 
B)  production with only two inputs - land and labor 
C)  a fixed supply of land 
D)  human desire to increase the population 
A)  stable prices 
B)  production with only two inputs - land and labor 
C)  a fixed supply of land 
D)  human desire to increase the population

Question 17

Most modern economists agree that there is a single factor that can be used to explain economic growth.

Accepted Answer

A)  This is a true statement because what are needed are abundant resources. 
B)  This is a true statement because at the foundation of economic growth, it is essential that there exist extensive private property rights. 
C)  This is a false statement because nearly all economists believe that economic growth is a complex process without a single dominant factor. 
D)  This is a false statement because economists typically do not agree on policy issues. 
A)  This is a true statement because what are needed are abundant resources. 
B)  This is a true statement because at the foundation of economic growth, it is essential that there exist extensive private property rights. 
C)  This is a false statement because nearly all economists believe that economic growth is a complex process without a single dominant factor. 
D)  This is a false statement because economists typically do not agree on policy issues.

Question 18

Economists generally define economic growth as an increase in the nominal income of the population.

Accepted Answer

A) True 
 B)False

Question 19

A country will roughly double its GDP in twenty years if its annual growth rate is:

Accepted Answer

A)  2.5 percent. 
B)  3.5 percent. 
C)  7.5 percent. 
D)  12 percent. 
A)  2.5 percent. 
B)  3.5 percent. 
C)  7.5 percent. 
D)  12 percent.

Question 20

The prosperity of a nation today is typically measured by its:

Accepted Answer

A)  total output or gross national product. 
B)  real output per capita. 
C)  gold reserves. 
D)  proportionate share of international trade. 
A)  total output or gross national product. 
B)  real output per capita. 
C)  gold reserves. 
D)  proportionate share of international trade.

Exam 20: Economic Growth in the Global Economy

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

Ultimately,productivity growth is the major determinant of a country's standard of living

Higher levels of savings will result in all of following except:

Malthus's gloomy economic outlook for humankind is based on the following principle:

Which of the following is true?

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

If people began to retire at a later age and there was an increase in the capital stock,real GDP growth would ____ and real GDP growth per capita would ____.

If a country's annual growth rate is 2%,then its output will double in approximately ____ years.

If productivity of an economy increases then:

The faster the rate of technological progress:

Real output per capita:

Capital formation is a key component of economic growth.

For a low-income country to develop into a high-income country,____ is (are)needed.

An increase in growth rates will cause:

Exhibit 20-1 Refer to Exhibit 20-1.Which nation enjoys the highest growth rate?

Which of the following was not one of Malthus assumptions?

Most modern economists agree that there is a single factor that can be used to explain economic growth.

Economists generally define economic growth as an increase in the nominal income of the population.

A country will roughly double its GDP in twenty years if its annual growth rate is:

The prosperity of a nation today is typically measured by its:

The Role and Method of Economics

Economics: Eight Powerful Ideas

Scarcity, Trade-Offs, and Production Possibilities

Demand, Supply, and Market Equilibrium

Markets in Motion and Price Controls

Elasticities

Market Efficiency and Welfare

Market Failure

Public Finance and Public Choice

Consumer Choice Theory

The Firm: Production and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust

Monopolistic Competition and Product Differentiation

Oligopoly and Strategic Behavior

The Markets for Labor, Capital, and Land

Income, Poverty, and Health Care

Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

Measuring Economic Performance

Financial Markets, Saving, and Investment

Aggregate Demand and Aggregate Supply

The Aggregate Expenditure Model

Monetary Institutions

The Federal Reserve System and Monetary Policy

Issues in Macroeconomic Theory and Policy

International Trade

International Finance

Filters

If people began to retire at a later age and there was an increase in the capital stock,real GDP growth would and real GDP growth per capita would .