Question 1

Suppose that a country has a GDP of 1 trillion dollars in year 1. If the country grows at an average rate of 3 percent per year over a 15-year period, what will its compounded GDP be at the end of that time period?

Accepted Answer

The formula for compound growth is GDP * (1 + growth rate)^number of years. So, 1 trillion * (1 + 0.03)^15 = 1.56 trillion.

Question 2

The amount of physical capital in an economy is calculated by adding up the value of all:

Accepted Answer

Physical capital refers to the tools, equipment, and structures used in production. Therefore, the value of all these things should be added up to calculate the amount of physical capital in an economy. The other choices (B, C, and D) do not directly relate to physical capital.

Question 3

Suppose that a country has a nominal GDP of 10.3 trillion dollars in year 1. If the country grows at an average rate of 3 percent per year over a 15-year period, what will its compounded GDP be at the end of that time period?

Accepted Answer

The answer of Suppose that a country has a nominal...

Question 4

Which of the following is an example of physical capital?

Accepted Answer

Physical capital refers to tangible goods used in production, such as machinery and equipment. A combine harvester is an example of physical capital as it is a machine used in agricultural production. Bank loan, seeds, and a tree are not physical capital.

Question 5

We can tell how much physical capital has been added to the economy by:

Accepted Answer

Physical capital can be added to the economy through new investment, but it can also be lost through depreciation or wear and tear on existing capital. Therefore, the best way to track how much physical capital has been added to the economy is by considering both new investment and depreciation.

Question 6

Productivity is generally measured as:

Accepted Answer

Productivity is usually measured as output per worker, which is the amount of goods or services produced per unit of labor input. This is the most commonly used measure of productivity in most industries and is useful for comparing productivity across firms and countries.

Question 7

The productivity of workers can depend upon which of the following?

Accepted Answer

Physical capital, which includes machinery, equipment, and infrastructure, can significantly enhance the productivity of workers by improving the efficiency and speed of their work. Population growth and the number of businesses established are not direct determinants of productivity but may have some indirect impact.

Question 8

Which of the following would not be considered physical capital?

Accepted Answer

Physical capital refers to man-made products that are used in the production process, such as machinery, equipment, and structures. Fertile soil, though important for agriculture, is a natural resource and not considered physical capital.

Question 9

A country's income:

Accepted Answer

A country's income is directly related to how productive its workers are. The more productive the workers are, the more goods and services they can produce, which directly influences a country's income.

Question 10

National output per person is another way to report:

Accepted Answer

National output per person is commonly referred to as real GDP per capita, which reflects the economic output per person in a given country adjusted for inflation.

Question 11

Which of the following is generally not a result of increases in productivity per person?

Accepted Answer

Increases in productivity result in greater efficiency and output per person, leading to economic growth and increases in per capita income and overall GDP. Increases in unemployment are not a direct result of increases in productivity, as higher productivity can actually create more jobs in the long run by making businesses more competitive and profitable.

Question 12

The productivity of workers can depend upon which of the following?

Accepted Answer

All of these factors can impact the productivity of workers. Human capital, such as education and training, can improve worker skills and knowledge. Natural resources can provide the materials necessary for production. Technology can improve efficiency and make tasks easier to complete. Therefore, all of these factors are important determinants of productivity.

Question 13

Which of the following would not be considered physical capital?

Accepted Answer

A trained physicist is a human capital, not physical capital. Physical capital refers to tangible items that are used in the production of goods or services, such as machinery, equipment, or tools. The other choices (an optical lens, a spotlight, and a clipboard) are all examples of physical capital.

Question 14

If a country grows at an average rate of 5 percent per year over a 5 year period, what is its compounded growth rate over that time period?

Accepted Answer

The compounded growth rate over a 5 year period is 27.6 percent. This is calculated using the formula (1 + r)^n - 1, where r is the annual growth rate and n is the number of years. In this case, r = 0.05 and n = 5, so the compounded growth rate is (1 + 0.05)^5 - 1 = 0.276, or 27.6 percent.

Question 15

Increases in productivity per person lead to increases in:

Accepted Answer

Increased productivity means that each person can produce more, which ultimately leads to an increase in overall production in the economy. This increased production, in turn, leads to economic growth.

Question 16

The productivity of workers can be improved through: human capital. technological capital. physical capital.

Accepted Answer

The answer of The productivity of workers can be improved...

Question 17

Which of the following is an example of physical capital?

Accepted Answer

Physical capital refers to man-made goods used in the production of other goods and services. A factory and a computer are both examples of physical capital as they are used to produce other goods and services. A pen is not an example of physical capital as it is not usually used in the production process. Therefore, the best choice is D, as all of the given options are examples of physical capital.

Question 18

The measurement of output per worker is called:

Accepted Answer

The measurement of output per worker is known as productivity. It is a key indicator of the health of an economy and is closely watched by policymakers and economists alike.

Question 19

Physical capital is:

Accepted Answer

Physical capital refers to the stock of equipment and structures that support the production of goods and services. It includes tools, machinery, vehicles, buildings, and other durable assets used in the production process. It does not include monetary reserves or human capital (skills, knowledge, experience, and talent of workers).

Question 20

Which of the following is an example of physical capital?

Accepted Answer

Physical capital refers to the tools, equipment, and infrastructure used in the production of goods and services. A tractor is an example of physical capital as it is a machine used in agriculture to cultivate and harvest crops. The farmer (B) is not an example of physical capital as it refers to human capital or the skills, knowledge, and experience possessed by individuals. A high-yield seed variety (C) is an example of natural capital or resources provided by nature. Therefore, only option A is the correct answer.

Quiz 10: Economicgrowth

Suppose that a country has a GDP of 1 trillion dollars in year 1. If the country grows at an average rate of 3 percent per year over a 15-year period, what will its compounded GDP be at the end of that time period?

The amount of physical capital in an economy is calculated by adding up the value of all:

Suppose that a country has a nominal GDP of 10.3 trillion dollars in year 1. If the country grows at an average rate of 3 percent per year over a 15-year period, what will its compounded GDP be at the end of that time period?

Which of the following is an example of physical capital?

We can tell how much physical capital has been added to the economy by:

Productivity is generally measured as:

The productivity of workers can depend upon which of the following?

Which of the following would not be considered physical capital?

A country's income:

National output per person is another way to report:

Which of the following is generally not a result of increases in productivity per person?

The productivity of workers can depend upon which of the following?

Which of the following would not be considered physical capital?

If a country grows at an average rate of 5 percent per year over a 5 year period, what is its compounded growth rate over that time period?

Increases in productivity per person lead to increases in:

The productivity of workers can be improved through: human capital. technological capital. physical capital.

Which of the following is an example of physical capital?

The measurement of output per worker is called:

Physical capital is:

Which of the following is an example of physical capital?