Question 1

From 2013 to 2014, nominal gross domestic product GDP)  in the United States increased by

Accepted Answer

A)   8.3 percent.
B)   1.0 percent.
C)   3.9 percent.
D)   2.8 percent.
E)   5.4 percent.F) A) and D)
G) A) and E)

Question 2

From 2006 to 2010, per capita real gross domestic product GDP)  in India grew an average of 7.11 percent per year. At that rate, according to the Rule of 70, in roughly how many years will the Indian economy double in size?

Accepted Answer

A)   4.9 years
B)   9.8 years
C)   6.9 years
D)   7.1 years
E)   5.5 yearsF) B) and C)
G) B) and D)

Question 3

From 2009 to 2010, nominal gross domestic product GDP)  in the United States grew by 3.8 percent. Given that prices increased by 1 percent and per capita real GDP grew by 1.8 percent, we know that the population grew by

Accepted Answer

A)   2.0 percent.
B)   1.8 percent.
C)   1.0 percent.
D)   4.8 percent.
E)   5.8 percent.F) B) and D)
G) A) and C)

Question 4

Lauren owns a bakery. She wants to increase her daily production of baked goods, so she knows she needs to acquire more resources. Which of the following actions would represent an increase in the human capital resource at her bakery?

Accepted Answer

A)   buying additional ovens
B)   repairing a broken delivery van
C)   hiring more employees
D)   buying better-quality ingredients
E)   moving into a larger spaceF) B) and C)
G) All of the above

Question 5

One of the most basic reasons why Taiwan is so much wealthier than Liberia is that Taiwan

Accepted Answer

A)   is larger and has more resources.
B)   has a closer relationship with the United States.
C)   has institutions that promote economic growth.
D)   has a better climate.
E)   has a common language shared by all its residents.F) All of the above
G) B) and E)

Question 6

Recently, Greece underwent an economic crisis. Although there are numerous factors that contributed to the crisis, one problem is Greece's tax system, which is very complicated. As a result, numerous Greeks simply choose not to pay their taxes. How does this situation affect Greece's economic growth?

Accepted Answer

A)   Greece's economy is harmed by a lack of an efficient tax system.
B)   Greece's economy is not affected by its tax system.
C)   Greece's economy is harmed by a lack of productive resources.
D)   Greece's economy is harmed by a lack of international trade.
E)   Greece's economy benefits from high levels of tax revenue.F) B) and E)
G) B) and D) A

Question 7

What would be the potential impact of a politically motivated monetary policy on economic growth?

Accepted Answer

Political decisions are often shortsight...

Question 8

Why is it necessary to adjust changes in nominal gross domestic product GDP) for changes in prices and changes in population i.e., compute per capita real GDP) before using it as a measure of economic growth?

Accepted Answer

It is necessary to adjust nominal GDP for changes in prices because an increase in nominal GDP could be a sign that the economy produced more output, which would reflect economic growth. Or, it could be because average prices increased, which would not reflect economic growth. Nominal GDP must also be adjusted for population change to accurately measure standards of living. This is because in order for standard of living to truly increase, it must increase for the average person. Thus, real GDP is divided by population to get a measure of the true standard of living.

Question 9

From 2006 to 2010, per capita real gross domestic product GDP)  in Ethiopia grew an average of 7.99 percent per year. At that rate, according to the Rule of 70, in roughly how many years will the Ethiopian economy double in size?

Accepted Answer

A)   6.2 years
B)   7.8 years
C)   8.8 years
D)   5.5 years
E)   10.1 yearsF) None of the above
G) A) and B)

Question 10

Which of the following would be classified as a natural resource?

Accepted Answer

A)   obtaining a college degree
B)   a factory
C)   coal
D)   a loaf of bread
E)   wireless networking equipmentF) A) and D)
G) B) and D)

Question 11

If you earn a subsistence-level income, much of your time is spent acquiring

Accepted Answer

A)   luxury items, such as expensive cars and a nice house.
B)   tax cuts, which will raise your take-home pay.
C)   education and training, to better improve your earnings.
D)   entertainment and consumer electronics.
E)   basic necessities such as food, clothing, and shelter.F) B) and E)
G) C) and D)

Question 12

Which of the following represents the technology used in a classroom?

Accepted Answer

A)   pencils, pens, markers, and erasers
B)   the instructional methods the teacher uses
C)   desks and chairs
D)   the building in which the classroom is located
E)   the lockers and storage cabinetsF) A) and D)
G) A) and C)

Question 13

Krista owns a hair salon. She wants to increase the number of clients she serves each month, so she knows she needs to acquire more resources. Which of the following actions would represent an increase in the human capital resource at her hair salon?

Accepted Answer

A)   buying more chairs and hair dryers
B)   moving into a larger salon
C)   increasing the amount of training for her stylists
D)   purchasing better-quality shampoo
E)   buying more scissors and combsF) A) and C)
G) None of the above

Question 14

The percent change in nominal gross domestic product GDP)  minus the percent change in prices and the rate of population growth equals

Accepted Answer

A)   real per capita GDP.
B)   the percent change in real GDP.
C)   the percent change in per capita GDP.
D)   the percent change in per capita real GDP.
E)   real GDP.F) A) and D)
G) B) and D)

Question 15

Krista owns a hair salon. She wants to increase the number of clients she serves each month, and she
wants to use a technological advance to do so. ________ would represent a technological advance at
her hair salon.

Accepted Answer

A)   More scissors, combs, and mirrors
B)   Better training for her staff
C)   Increasing the number of employees
D)   Installing a new hair dryer that can dry hair in half the time, with less damage to the hair,
E)   A larger hair salon with more chairsF) C) and D)
G) C) and E)

Question 16

Is having abundant resources an absolute guarantee of economic growth and prosperity?

Accepted Answer

A)   Yes, as long as a country has a large number of resources, it will prosper.
B)   No, countries also need an aggressive military.
C)   Yes, there are no prosperous countries without a large amount of resources.
D)   No, other factors like institutions and technological advances are relevant too.
E)   No, many countries thrive under collective ownership of property.F) None of the above
G) A) and C)

Question 17

In 1950, Brazil's economy was roughly the same size as Nicaragua's. Today, Brazil's economy is almost five times as large as Nicaragua's. Which of the following most likely explains this difference based on the main drivers of economic growth discussed in the textbook?

Accepted Answer

A)   Nicaragua was too reliant on foreign aid, whereas Brazil was far more economically independent.
B)   Brazil greatly limited international trade, whereas Nicaragua opened its borders to imports and exports.
C)   Brazil supported institutions like property rights, which tend to foster growth, whereas Nicaragua did not.
D)   Brazil's economy was largely agricultural, whereas Nicaragua's was industrial.
E)   Nicaragua had excessively high tax rates, but Brazil kept its taxes low and competitive.F) B) and E)
G) None of the above

Question 18

In 2013, U.S. gross domestic product GDP)  was roughly

Accepted Answer

A)   $16.8 trillion.
B)   $1.68 trillion.
C)   $168 trillion.
D)   $168 billion.
E)   $168 million.F) C) and E)
G) C) and D) A

Question 19

From 2009 to 2010, nominal gross domestic product GDP)  in the United States grew by 3.8 percent. Given that prices increased by 1 percent and the population grew by 1 percent, we know that per capita real GDP grew by

Accepted Answer

A)   3.8 percent.
B)   1.8 percent.
C)   2.8 percent.
D)   4.8 percent.
E)   5.8 percent.F) A) and B)
G) All of the above

Question 20

Annual real per capita gross domestic product GDP)  in India was roughly $2,900 in 2000. If it grew by 8 percent the following year, by 2001 the annual real per capita GDP would be

Accepted Answer

A)   $3,132.
B)   $2,908.
C)   $5,220.
D)   $6,080.
E)   $4,760.F) C) and D)
G) A) and D)

Exam 11: Economic Growth and the Wealth of Nations

From 2013 to 2014, nominal gross domestic product GDP) in the United States increased by

Correct Answer
verified

From 2006 to 2010, per capita real gross domestic product GDP) in India grew an average of 7.11 percent per year. At that rate, according to the Rule of 70, in roughly how many years will the Indian economy double in size?

Correct Answer
verified

From 2009 to 2010, nominal gross domestic product GDP) in the United States grew by 3.8 percent. Given that prices increased by 1 percent and per capita real GDP grew by 1.8 percent, we know that the population grew by

Correct Answer
verified

Lauren owns a bakery. She wants to increase her daily production of baked goods, so she knows she needs to acquire more resources. Which of the following actions would represent an increase in the human capital resource at her bakery?

Correct Answer
verified

One of the most basic reasons why Taiwan is so much wealthier than Liberia is that Taiwan

Correct Answer
verified

Correct Answer
verified
A

What would be the potential impact of a politically motivated monetary policy on economic growth?

Correct Answer
verified
Political decisions are often shortsight...
View Answer

Why is it necessary to adjust changes in nominal gross domestic product GDP) for changes in prices and changes in population i.e., compute per capita real GDP) before using it as a measure of economic growth?

From 2006 to 2010, per capita real gross domestic product GDP) in Ethiopia grew an average of 7.99 percent per year. At that rate, according to the Rule of 70, in roughly how many years will the Ethiopian economy double in size?

Correct Answer
verified

Which of the following would be classified as a natural resource?

Correct Answer
verified

If you earn a subsistence-level income, much of your time is spent acquiring

Correct Answer
verified

Which of the following represents the technology used in a classroom?

Correct Answer
verified

Krista owns a hair salon. She wants to increase the number of clients she serves each month, so she knows she needs to acquire more resources. Which of the following actions would represent an increase in the human capital resource at her hair salon?

Correct Answer
verified

The percent change in nominal gross domestic product GDP) minus the percent change in prices and the rate of population growth equals

Correct Answer
verified

Krista owns a hair salon. She wants to increase the number of clients she serves each month, and she wants to use a technological advance to do so. ________ would represent a technological advance at her hair salon.

Correct Answer
verified

Is having abundant resources an absolute guarantee of economic growth and prosperity?

Correct Answer
verified

In 1950, Brazil's economy was roughly the same size as Nicaragua's. Today, Brazil's economy is almost five times as large as Nicaragua's. Which of the following most likely explains this difference based on the main drivers of economic growth discussed in the textbook?

Correct Answer
verified

In 2013, U.S. gross domestic product GDP) was roughly

Correct Answer
verified
A

From 2009 to 2010, nominal gross domestic product GDP) in the United States grew by 3.8 percent. Given that prices increased by 1 percent and the population grew by 1 percent, we know that per capita real GDP grew by

Correct Answer
verified

Annual real per capita gross domestic product GDP) in India was roughly $2,900 in 2000. If it grew by 8 percent the following year, by 2001 the annual real per capita GDP would be

Correct Answer
verified

Exam 11: Economic Growth and the Wealth of Nations

From 2013 to 2014, nominal gross domestic product GDP) in the United States increased by

Correct AnswerverifiedShow Answer

From 2006 to 2010, per capita real gross domestic product GDP) in India grew an average of 7.11 percent per year. At that rate, according to the Rule of 70, in roughly how many years will the Indian economy double in size?

Correct AnswerverifiedShow Answer

From 2009 to 2010, nominal gross domestic product GDP) in the United States grew by 3.8 percent. Given that prices increased by 1 percent and per capita real GDP grew by 1.8 percent, we know that the population grew by

Correct AnswerverifiedShow Answer

Lauren owns a bakery. She wants to increase her daily production of baked goods, so she knows she needs to acquire more resources. Which of the following actions would represent an increase in the human capital resource at her bakery?

Correct AnswerverifiedShow Answer

One of the most basic reasons why Taiwan is so much wealthier than Liberia is that Taiwan

Correct AnswerverifiedShow Answer

Correct AnswerverifiedA

What would be the potential impact of a politically motivated monetary policy on economic growth?

Correct AnswerverifiedPolitical decisions are often shortsight...View AnswerShow Answer

Why is it necessary to adjust changes in nominal gross domestic product GDP) for changes in prices and changes in population i.e., compute per capita real GDP) before using it as a measure of economic growth?

From 2006 to 2010, per capita real gross domestic product GDP) in Ethiopia grew an average of 7.99 percent per year. At that rate, according to the Rule of 70, in roughly how many years will the Ethiopian economy double in size?

Correct AnswerverifiedShow Answer

Which of the following would be classified as a natural resource?

Correct AnswerverifiedShow Answer

If you earn a subsistence-level income, much of your time is spent acquiring

Correct AnswerverifiedShow Answer

Which of the following represents the technology used in a classroom?

Correct AnswerverifiedShow Answer

Krista owns a hair salon. She wants to increase the number of clients she serves each month, so she knows she needs to acquire more resources. Which of the following actions would represent an increase in the human capital resource at her hair salon?

Correct AnswerverifiedShow Answer

The percent change in nominal gross domestic product GDP) minus the percent change in prices and the rate of population growth equals

Correct AnswerverifiedShow Answer

Krista owns a hair salon. She wants to increase the number of clients she serves each month, and she wants to use a technological advance to do so. ________ would represent a technological advance at her hair salon.

Correct AnswerverifiedShow Answer

Is having abundant resources an absolute guarantee of economic growth and prosperity?

Correct AnswerverifiedShow Answer

In 1950, Brazil's economy was roughly the same size as Nicaragua's. Today, Brazil's economy is almost five times as large as Nicaragua's. Which of the following most likely explains this difference based on the main drivers of economic growth discussed in the textbook?

Correct AnswerverifiedShow Answer

In 2013, U.S. gross domestic product GDP) was roughly

Correct AnswerverifiedA

From 2009 to 2010, nominal gross domestic product GDP) in the United States grew by 3.8 percent. Given that prices increased by 1 percent and the population grew by 1 percent, we know that per capita real GDP grew by

Correct AnswerverifiedShow Answer

Annual real per capita gross domestic product GDP) in India was roughly $2,900 in 2000. If it grew by 8 percent the following year, by 2001 the annual real per capita GDP would be

Correct AnswerverifiedShow Answer

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A

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Political decisions are often shortsight...
View Answer

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