Exam 28: Economic Growth

If the growth rate of resources is zero and real output is growing at 4 percent, then _____.

Economic growth measured in terms of an increase in per capita real GDP is not a good measure of the distribution of income in a nation.

Which of the following stands true for the determinants of growth?

Suppose that the economy grows by 4 percent, total factor productivity grows by 3 percent, and the labor force increases by 6 percent.If labor and capital are the only inputs and labor contributes 40 percent to GDP, then the stock of capital must have _____.

As the service sector in the U.S.economy grows, traditional productivity measures will become:

To calculate the time required by real GDP to double, we _____.

Suppose the real GDP in an economy in the year 1999 was $2, 000 and the total population was 500.The economy experienced a 5% growth in real GDP and a 2% growth in its population in 2000.Calculate the change in per capita income of the economy during this period.

The development of a financial market is not important in determining the economic growth of a nation.

When trying to determine the standard of living in a given country, it is not important to observe its income distribution, because what we are interested in is the income per person in the economy.

Abundance of natural resources is a necessary but not sufficient condition for economic growth.

Which of the following is considered a determinant of economic growth?

Productivity in the services industry may be underestimated because ____ may not be taken into account.

According to the rule of 72, if you have $15, 000 in an account that grows at the rate of 12 percent annually, it will take approximately six years for the $15, 000 to double to $30, 000.

Which of the following factors will increase labor productivity in the United States?

_____ is the ratio of the economy's output to its stock of labor and capital.

If the real GDP of a developed country doubles in 48 years, the average annual growth rate in real GDP must be _____.

Which of the following statements about the economic concept of land is not true?

If Australia's real GDP is AUD$434.95 billion in 1999 and the country's average annual growth rate is 2.9 percent, what will its real GDP be in 2004?

When you are calculating how long it will take your initial bank deposit to double, the rule of 72 prescribes that you divide the annual interest rate paid on the deposit by 72.

Assume that an economy grows at compounding rates.Then, over a period of 40 years, an economy that grows at 6.5% each year will have an output level approximately ____ times larger than an economy that grows at 2.5%.