Question 1

If a country experiences a real GDP growth rate of 6 percent, real GDP will double in

Accepted Answer

Using the Rule of 70, which estimates the doubling time of an investment or economy, you divide 70 by the growth rate. For a 6% growth rate, 70/6 = approximately 11.67 years.

Question 2

China's growth rate has_{--------------------}that of most other countries,_{--------------------}

Accepted Answer

China's growth rate has been higher than most other countries, but its real GDP per person is still lower than that of other industrialized countries.

Question 3

The economic growth rate is measured as the

Accepted Answer

The economic growth rate is typically measured by the annual percentage change in real GDP, which reflects the increase in the value of goods and services produced by an economy, adjusted for inflation.

Question 4

Which of the following are important for countries to promote with property rights and incentives
If economic growth is to occur?
i.specialization
ii.saving and investment
iii.increases in human capital iv)discovery of new technology

Accepted Answer

All the listed factors—specialization, saving and investment, increases in human capital, and discovery of new technology—are crucial for economic growth, as they enhance productivity and efficiency in an economy.

Question 5

The presence of an incentive system that encourages growth

Accepted Answer

An incentive system creates the right conditions for growth by motivating individuals and businesses to innovate and improve productivity, but it does not guarantee growth or require a specific type of government.

Question 6

Economic growth in Cuba has been slow; what can best explain the slow growth?

Accepted Answer

Cuba's slow economic growth can be attributed to a lack of incentive mechanisms and economic freedom, which stifles innovation and productivity.

Question 7

The new growth theory asserts that

Accepted Answer

The new growth theory emphasizes that knowledge and technology can be shared and replicated across different firms, leading to sustained economic growth.

Question 8

A technological change_{--------------------}and a change in the capital stock _{--------------------}

Accepted Answer

A technological change shifts the productivity curve, while a change in the capital stock creates a movement along the productivity curve.

Question 9

A key element of the classical growth theory is that

Accepted Answer

Classical growth theory suggests that an increase in population leads to an increase in labor supply, which can result in a decline in real GDP per person due to diminishing returns.

Question 10

The new growth theory's comparison of the economy to a perpetual motion machine implies that

Accepted Answer

The new growth theory suggests that economic growth can continue indefinitely through innovation and technological advancements, which continuously create and destroy jobs.

Question 11

The classical theory was developed in the late 18th and early 19th centuries

Accepted Answer

The classical theory, particularly Malthusian theory, still has proponents today who are concerned about the implications of population growth and overpopulation on resources and the environment.

Question 12

The population in the current year is 31.5 million and the real GDP is $814 million. The previous Year's statistics were a population of 31 million and a real GDP of $800 million. The change in the standard of living, measured by growth in real GDP per person, is

Accepted Answer

The answer of The population in the current year is...

Question 13

Economic freedom means that

Accepted Answer

Economic freedom refers to the ability of individuals to make their own economic decisions, including personal choices, and the protection of their property rights.

Question 14

If Turkey wants to promote faster economic growth, it will need to

Accepted Answer

Promoting incentive systems encourages activities that lead to economic growth, such as saving, research and development, increased trade, and improved education, which are crucial for a thriving economy.

Question 15

$\begin{array} { c c c } 
\hline &\text { Employment }&\text { Real GDP }\
\text { Year }&\text { (millions of people) }&\text { (billions of } 2005 \text { francs) }\
\hline 1998 & 58.85 & 8,243.9 \
1997 & 58.61 & 7,992.2 \
\hline
\end{array}$
The table above gives information about the economy of France. 
-The growth rate of real GDP per person in 1998 is ___________-percent.

Accepted Answer

The growth rate of real GDP per person in 1998 is (8,243.9 - 7,992.2) / 7,992.2 * 100 = 3.1%.

Question 16

Economic freedom

Accepted Answer

Economic freedom is supported by the rule of law, which ensures property rights and contracts are respected, fostering an environment where businesses can operate freely and efficiently.

Question 17

$\begin{array} { c c c } 
\hline \text { Year } & \begin{array} { c } 
\text { Real GDP } \
\text { (trillions of 2005 dollars) }
\end{array} & \begin{array} { c } 
\text { Population } \
\text { (millions of people) }
\end{array} \
\hline 2009 & 7.00 & 100.0 \
2010 & 7.50 & 105.0 \
2011 & 8.25 & 110.0 \
\hline
\end{array}$
Using the data in the table above, the growth rate of real GDP has

Accepted Answer

The growth rate of real GDP has increased from year to year because the real GDP has increased from 7.00 trillion dollars in 2009 to 7.50 trillion dollars in 2010 and to 8.25 trillion dollars in 2011.

Question 18

Retirement savings accounts, such as IRAs, help increase economic growth because

Accepted Answer

Savings in retirement accounts like IRAs provide capital that can be used for investment, which in turn can lead to economic growth.

Question 19

The quantity of real GDP produced by one hour of labor is defined as

Accepted Answer

Labor productivity is the quantity of real GDP produced by one hour of labor.

Question 20

The productivity curve shifts upward when

Accepted Answer

Technology advances increase productivity, shifting the productivity curve upward.

Quiz 9: Economic Growth

If a country experiences a real GDP growth rate of 6 percent, real GDP will double in

China's growth rate has_{--------------------}that of most other countries,_{--------------------}

The economic growth rate is measured as the

Which of the following are important for countries to promote with property rights and incentives If economic growth is to occur? i.specialization ii.saving and investment iii.increases in human capital iv) discovery of new technology

The presence of an incentive system that encourages growth

Economic growth in Cuba has been slow; what can best explain the slow growth?

The new growth theory asserts that

A technological change_{--------------------}and a change in the capital stock _{--------------------}

A key element of the classical growth theory is that

The new growth theory's comparison of the economy to a perpetual motion machine implies that

The classical theory was developed in the late 18th and early 19th centuries

The population in the current year is 31.5 million and the real GDP is $814 million. The previous Year's statistics were a population of 31 million and a real GDP of $800 million. The change in the standard of living, measured by growth in real GDP per person, is

Economic freedom means that

If Turkey wants to promote faster economic growth, it will need to

Economic freedom

Retirement savings accounts, such as IRAs, help increase economic growth because

The quantity of real GDP produced by one hour of labor is defined as

The productivity curve shifts upward when

Quiz 9: Economic Growth

If a country experiences a real GDP growth rate of 6 percent, real GDP will double in

China's growth rate has--------------------that of most other countries,--------------------

The economic growth rate is measured as the

Which of the following are important for countries to promote with property rights and incentives If economic growth is to occur? i.specialization ii.saving and investment iii.increases in human capital iv) discovery of new technology

The presence of an incentive system that encourages growth

Economic growth in Cuba has been slow; what can best explain the slow growth?

The new growth theory asserts that

A technological change--------------------and a change in the capital stock --------------------

A key element of the classical growth theory is that

The new growth theory's comparison of the economy to a perpetual motion machine implies that

The classical theory was developed in the late 18th and early 19th centuries

The population in the current year is 31.5 million and the real GDP is $814 million. The previous Year's statistics were a population of 31 million and a real GDP of $800 million. The change in the standard of living, measured by growth in real GDP per person, is

Economic freedom means that

If Turkey wants to promote faster economic growth, it will need to

Economic freedom

Retirement savings accounts, such as IRAs, help increase economic growth because

The quantity of real GDP produced by one hour of labor is defined as

The productivity curve shifts upward when

China's growth rate has_{--------------------}that of most other countries,_{--------------------}

A technological change_{--------------------}and a change in the capital stock _{--------------------}