question

Economic growth is best defined as an increase in:

answer

either real GDP or real GDP per capita.

question

Real GDP per capita is found by:

answer

dividing real GDP by population.

question

Real GDP per capita:

answer

can grow either more slowly or more rapidly than real GDP.

question

Which of the following best measures improvements in the standard of living of a nation?

answer

Growth of real GDP per capita.

question

If a nation's real GDP increases from 100 billion to 106 billion and its population jumps from 200 million to 212 million, it real GDP per capita will:

answer

remain constant.

question

For a nation's real GDP per capita to rise during a year:

answer

real GDP must increase more rapidly than population.

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Growth is advantageous to a nation because it:

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lessens the burden of scarcity.

question

Refer to the table. Between years 1 and 2, real GDP grew by __________ percent in Alta.

answer

5

question

Refer to the table. Between years 2 and 3:

answer

Alta's real GDP grew more rapidly than Zorn's real GDP.

question

The number of years required for real GDP to double can be found by:

answer

dividing 70 by the annual growth rate.

question

If a nation's real GDP is growing by 5 percent per year, its real GDP will double in approximately:

answer

14 years.

question

Under what circumstances do rates of economic growth understate the growth of economic well-being?

answer

Product quality has improved.

question

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

answer

Modern economic growth is characterized by sustained and ongoing increases in living standards.

question

Countries that have experienced modern economic growth have also tended to:

answer

move toward more democratic forms of government.

question

The Industrial Revolution and modern economic growth resulted in:

answer

the average human lifespan more than doubling.

question

Economic historians date the start of the Industrial Revolution around the year 1776, when James Watt:

answer

invented and built a more powerful and efficient steam engine.

question

Which of the following economic regions has experienced the least growth in real GDP per capita since 1820?

answer

Africa.

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Which of the following economic regions has experienced the most growth in real GDP per capita since 1820?

answer

United States.

question

Which of the following statements is most accurate about the prospects for poorer ("follower") countries catching up with richer ("leader") countries?

answer

Catching up is possible as "follower countries" tend to grow faster than "leader countries."

question

Economic growth rates in follower countries:

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tend to exceed those in leader countries because followers can cheaply adopt the new technologies that leaders developed at relatively high costs.

question

Strong property rights are important for modern economic growth because:

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people are more likely to invest if they don't fear that others can take their returns on investment without compensation.

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Which of the following institutional arrangements is most likely to promote growth?

answer

Unrestricted trade between nations.

question

Economic growth can be portrayed as:

answer

an outward shift of the production possibilities curve.

question

Suppose that an economy's labor productivity fell by 3 percent and its total worker-hours remained constant between year 1 and year 2. We could conclude that this economy's:

answer

real GDP declined.

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Refer to the graph. Growth of production capacity is shown by the:

answer

shift from AB to CD.

question

Labor productivity is defined as:

answer

total output/worker-hours.

question

Which of the following is correct?

answer

Total output = worker-hours × labor productivity.

question

If the number of worker-hours in an economy is 100 and its labor productivity is $5 of output per worker-hour, the economy's real GDP:

answer

is $500.

question

Suppose total output (real GDP) is $4,000 and labor productivity is $8. We can conclude that:

answer

the number of worker-hours must be 500.

question

The percentage of the working-age population in the labor force (= employed + officially unemployed) is called the:

answer

labor force participation rate.

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The largest contributor to increases in the productivity of American labor is:

answer

technological advance.

question

More than half the growth of real GDP in the United States is caused by:

answer

increases in the productivity of labor.

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A nation's infrastructure refers to:

answer

public capital goods such as highways and sanitation systems.

question

Economies of scale refer to:

answer

the fact that large producers may be able to use more efficient technologies than smaller producers.

question

Human capital refers to:

answer

the skills and knowledge that enable a worker to be productive.

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What percentage of the U.S. adult population has at least a high school education (as of 2012)?

answer

88 percent.

question

What percentage of the U.S. adult population has a college or post-college education (as of 2012)?

answer

31 percent.

question

Network effects are:

answer

increases in the value of a product to each user, including existing users, as the total number of users rises.

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The fundamental invention underpinning the 1995-2012 rise in the average rate of productivity growth is the:

answer

microchip.

question

(Consider This) Over the past several decades, the percentage of women in the paid U.S. workforce has:

answer

increased due to higher wages, expanded job accessibility, changing preferences and attitudes, and other factors.

Macroeconomics. Chapter 8: Economic Growth Rates, Real GDP – Flashcards

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