Question 1

The average income in a rich country, such as the United States or Japan, is more than
A)3 times, but less than 5 times, the average income in a poor country, such as Indonesia or Nigeria.
B)5 times, but less than 10 times, the average income in a poor country, such as Indonesia or Nigeria.
C)10 times, but less than 20 times, the average income in a poor country, such as Indonesia or Nigeria.
D)more than 20 times the average income in a poor country, such as Indonesia or Nigeria.

Accepted Answer

The answer of The average income in a rich country,...

Question 2

Which of the following pairs of terms refer to the same thing?
A)"capital" and "physical capital"
B)"technological knowledge" and "human capital"
C)"standard of living" and "human capital"
D)"standard of living" and "productivity"

Accepted Answer

The answer of Which of the following pairs of terms...

Question 3

​Which of the following is higher in Mali than in the United Kingdom?
A)​Modern sanitation access
B)​Income per person
C)​Child mortality
D)​Percent of the population enrolled in college

Accepted Answer

Child mortality is higher in Mali than in the United Kingdom. According to the World Bank, in 2019, the child mortality rate in Mali was 64.7 deaths per 1,000 live births, while in the United Kingdom it was 3.9 deaths per 1,000 live births.

Question 4

In 2012, the imaginary nation of Dorados had a population of 8,000 and real GDP of 3,000,000. During the year its real GDP grew by about 2.9%. Which of the following sets of growth rates is consistent with this growth in real GDP?
A)2% population growth and 6% real GDP growth
B)6% population growth and 2% real GDP growth
C)4% population growth and 7% real GDP growth
D)7% population growth and 4% real GDP growth

Accepted Answer

To determine if a set of growth rates is consistent with the given real GDP growth, we need to calculate the nominal GDP for the imaginary nation for each set of growth rates and see which one matches the given real GDP. To do this, we use the following formula:
Nominal GDP = Real GDP / (1 + inflation rate)
We can assume that the inflation rate is close to zero since the question only mentions real GDP growth. Using this formula, we can calculate the nominal GDP for each set of growth rates:

A) Nominal GDP = 3,000,000 / (1 + 0.02) = 2,941,176.47 (not consistent with the given real GDP)
B) Nominal GDP = 3,000,000 / (1 + 0.06) = 2,830,188.68 (not consistent with the given real GDP)
C) Nominal GDP = 3,000,000 / (1 + 0.07) = 2,803,738.32 (consistent with the given real GDP)
D) Nominal GDP = 3,000,000 / (1 + 0.04) = 2,884,615.38 (not consistent with the given real GDP)

Therefore, the only set of growth rates consistent with the given real GDP growth is C) 4% population growth and 7% real GDP growth.

Question 5

Last year the imaginary nation of Panglossia had real GDP of 400 billion. This year it had real GDP of 472.5 billion. Which of the following changes in population is consistent with a 5 percent growth rate of real GDP per person over the last year?
A)The population decreased from 75 million to 72 million.
B)The population decreased from 60 million to 50 million.
C)The population increased from 70 million to 80 million.
D)The population increased from 80 million to 90 million.

Accepted Answer

The answer of Last year the imaginary nation of Panglossia...

Question 6

In which of the following countries has economic growth been sufficiently high that income would double every ten years?
A)Singapore
B)Nigeria
C)India
D)Indonesia

Accepted Answer

Singapore has experienced high and sustained economic growth over the past few decades. Its average annual growth rate has been around 7%. At this rate, income would double every 10 years. On the other hand, Nigeria, India, and Indonesia have not experienced growth rates high enough to double income every 10 years.

Question 7

​If real income per person was $47,210 in the U.S. in 2010, and $55,860 in 2014, what was the annual growth rate over this time period?
A)​4.29 percent per year
B)​1.83 percent per year
C)​8.45 percent per year
D)​1.18 percent per year

Accepted Answer

The annual growth rate can be calculated using the formula:r = (new value / old value)^(1/number of years) - 1In this case, the new value is $55,860, the old value is $47,210, and the number of years is 4.Plugging these values into the formula, we get:r = (55,860 / 47,210)^(1/4) - 1= 1.0429 - 1= 0.0429Converting this to a percentage, we get:r = 0.0429 * 100= 4.29%Therefore, the annual growth rate over this time period was 4.29 percent per year.

Question 8

In 2012, the imaginary nation of Platland had a population of 10,000 and real GDP of 42,000,000. During the year its real GDP per person grew by about 1.94%. Which of the following sets of growth rates is consistent with this growth in real GDP per person?
A)3% population growth and 4% real GDP growth
B)3% population growth and 5% real GDP growth
C)6% population growth and 4% real GDP growth
D)6% population growth and 5% real GDP growth

Accepted Answer

The growth in real GDP per person is approximately the real GDP growth rate minus the population growth rate. With a 5% real GDP growth and 3% population growth, the growth in real GDP per person is about 2%, which is consistent with the given 1.94%.

Question 9

Over the last century, U.S. real GDP per person grew at a rate of about
A)2 percent per year, so that it is now 2 times as high as it was a century ago.
B)2 percent per year, so that it is now 8 times as high as it was a century ago.
C)4 percent per year, so that it is now 2 times as high as it was a century ago.
D)4 percent per year, so that it is now 8 times as high as it was a century ago.

Accepted Answer

According to the information given, U.S. real GDP per person grew at a rate of 2 percent per year over the last century. To determine how much it has grown in total, we can use the formula for compound interest: A = P(1+r)^t, where A is the final amount, P is the initial amount, r is the annual growth rate as a decimal, and t is the number of years. Plugging in the values, we get A = P(1+0.02)^100 = 8P. This means that U.S. real GDP per person is now 8 times as high as it was a century ago. Therefore, the correct answer is B.

Question 10

During the past century the average growth rate of U.S. real GDP per person implies that it doubled, on average, about every
A)100 years.
B)70 years.
C)35 years.
D)25 years.

Accepted Answer

The answer of During the past century the average growth...

Question 11

Over the past century in the United States, real GDP per person has grown, on average, by about
A)1 percent per year.
B)2 percent per year.
C)3 percent per year.
D)5 percent per year.

Accepted Answer

The answer of Over the past century in the United...

Question 12

Average income in some East Asian countries, as measured by real GDP per person, has recently grown at an average annual rate that implies income will double about every
A)10 years.
B)15 years.
C)20 years.
D)25 years.

Accepted Answer

The answer of Average income in some East Asian countries,...

Question 13

​The rate of real economic growth
A)​is underestimated using measures of income growth.
B)​​is overestimated using measures of income growth.
C)​​is underestimated using measures of technological growth.
D)​​​is overestimated using measures of technological growth.

Accepted Answer

The answer of ​The rate of real economic growth
A)​is underestimated...

Question 14

In which of the following countries has economic growth been sufficiently high that income would double every ten years?
A)India
B)Mexico
C)South Korea
D)Zimbabwe

Accepted Answer

South Korea's economy has grown at a rate sufficient enough to double its income every ten years, known as the rule of 72. Between 1960 and 1990, South Korea's average growth rate was 7.8% which allowed it to achieve rapid economic growth and become one of the Four Asian Tigers. The other countries listed have not consistently maintained a growth rate high enough to double their income every ten years.

Question 15

The average income in a rich country
A)is about 5 times that in a poor country. Further, people in rich countries have longer life expectancy.
B)is about 5 times that in a poor country. However, people in rich countries have about the same life expectancy as those in poor countries.
C)is more than ten times that in a poor country. Further, people in rich countries have longer life expectancy.
D)is more than ten times that in poor country. However, people in rich countries have about the same life expectancy as those in poor countries.

Accepted Answer

According to the World Bank, the average income in high-income countries is more than ten times that in low-income countries. Additionally, people in high-income countries have a longer life expectancy compared to those in low-income countries. Therefore, option C is the best choice.

Question 16

A country experiencing a growth rate of 12% per year can go from being one of the poorest to one of the richest in
A)one generation. In the last couple of decades China's growth rate has been higher than 12%.
B)one generation. However, in the last couple of decades not even China's growth rate has been this high.
C)three generations. In the last couple of decades China's growth rate has been higher than 12%.
D)three generations. However, in the last couple of decades not even China's growth rate has been this high.

Accepted Answer

A growth rate of 12% per year is very high and can lead to significant economic growth over time. One generation typically refers to a period of 25-30 years. Therefore, a country with a growth rate of 12% per year can become one of the richest in one generation, which is a shorter time frame than three generations. It should be noted that while China's growth rate has been higher than 12% in the past, it has slowed down in recent years.

Question 17

A country experiencing a growth rate of 12% per year can go from being one of the poorest to one of the richest in how many generations?
A)one
B)two
C)three
D)four

Accepted Answer

The answer of A country experiencing a growth rate of...

Question 18

Average income has been stagnant for many years in
A)Western European counties.
B)some Asian countries like South Korea and Singapore.
C)some Sub-Saharan African countries.
D)All of the above are correct.

Accepted Answer

The answer of Average income has been stagnant for many...

Question 19

In 2009, the imaginary nation of Mainland had a population of 7,000 and real GDP of 210,000. In 2010 the population was 7,300 and real GDP of 223,380. Over the year in question, real GDP per person in Mainland grew by
A)2 percent, which is high compared to average U.S. growth over the last one-hundred years.
B)2 percent, which is about the same as average U.S. growth over the last one-hundred years.
C)4 percent, which is high compared to average U.S. growth over the last one-hundred years.
D)4 percent, which is about the same as average U.S. growth over the last one-hundred years.

Accepted Answer

The answer of In 2009, the imaginary nation of Mainland...

Question 20

Which of the following are residents of rich countries likely to have in greater quantities, or better quality, than residents of poor countries?
A)housing
B)healthcare
C)life expectancy
D)All of the above.

Accepted Answer

Residents of rich countries are likely to have better quality and greater quantity of housing, healthcare, and higher life expectancy due to their higher socio-economic status, availability of resources and facilities, and better access to education and employment opportunities. These factors contribute to better living conditions and health outcomes for residents of rich countries compared to those in poorer countries.

Quiz 25: Production and Growth

The average income in a rich country, such as the United States or Japan, is more than

Which of the following pairs of terms refer to the same thing?

​Which of the following is higher in Mali than in the United Kingdom?

In 2012, the imaginary nation of Dorados had a population of 8,000 and real GDP of 3,000,000. During the year its real GDP grew by about 2.9%. Which of the following sets of growth rates is consistent with this growth in real GDP?

Last year the imaginary nation of Panglossia had real GDP of 400 billion. This year it had real GDP of 472.5 billion. Which of the following changes in population is consistent with a 5 percent growth rate of real GDP per person over the last year?

In which of the following countries has economic growth been sufficiently high that income would double every ten years?

​If real income per person was $47,210 in the U.S. in 2010, and $55,860 in 2014, what was the annual growth rate over this time period?

In 2012, the imaginary nation of Platland had a population of 10,000 and real GDP of 42,000,000. During the year its real GDP per person grew by about 1.94%. Which of the following sets of growth rates is consistent with this growth in real GDP per person?

Over the last century, U.S. real GDP per person grew at a rate of about

During the past century the average growth rate of U.S. real GDP per person implies that it doubled, on average, about every

Over the past century in the United States, real GDP per person has grown, on average, by about

Average income in some East Asian countries, as measured by real GDP per person, has recently grown at an average annual rate that implies income will double about every

​The rate of real economic growth

In which of the following countries has economic growth been sufficiently high that income would double every ten years?

The average income in a rich country

A country experiencing a growth rate of 12% per year can go from being one of the poorest to one of the richest in

A country experiencing a growth rate of 12% per year can go from being one of the poorest to one of the richest in how many generations?

Average income has been stagnant for many years in

In 2009, the imaginary nation of Mainland had a population of 7,000 and real GDP of 210,000. In 2010 the population was 7,300 and real GDP of 223,380. Over the year in question, real GDP per person in Mainland grew by

Which of the following are residents of rich countries likely to have in greater quantities, or better quality, than residents of poor countries?

Which of the following is higher in Mali than in the United Kingdom?

If real income per person was $47,210 in the U.S. in 2010, and $55,860 in 2014, what was the annual growth rate over this time period?

The rate of real economic growth