Question 1

From 2006 to 2010,per capita real gross domestic product (GDP)in Ethiopia grew an average of 7.99% 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

The Rule of 70 states that the number of years it takes for a variable to double is approximately equal to 70 divided by the annual growth rate of the variable. 
In this case, the annual growth rate of per capita real GDP in Ethiopia is 7.99%, so we can calculate:
70 / 7.99 = 8.76 (rounded to 8.8 years)
Therefore, it would take approximately 8.8 years for the Ethiopian economy to double in size at this growth rate. Thus, the correct choice is C) 8.8 years.

Question 2

Which of the following are the three major categories of resources?

Accepted Answer

The three major categories of resources are natural resources, physical capital, and human capital. These encompass the essential inputs used in the production of goods and services.

Question 3

Japan is a nation of over 6,800 islands,none of which is very large.The largest island,Honshu,is roughly the same size as the state of Montana in the western United States.Does this mean that Japan is destined to have low economic growth and standards of living?

Accepted Answer

Japan might not have much land, but it is rich in other resources like fish and minerals. Additionally, Japan has advanced levels of technology, which has allowed it to develop industries and products that are in high global demand. Therefore, Japan's economic growth and standards of living are not solely dependent on its land size.

Question 4

An example of physical capital is:

Accepted Answer

Physical capital refers to man-made resources used in the production process, such as machinery, buildings, and equipment. A factory falls under this category. Exhaust from a smokestack (A) is a byproduct of production and not a resource used in the process. Dog food (C) and a pillow (D) are consumer goods and not used in the production process. Pants (E) are also consumer goods and not used in production.

Question 5

From 2006 to 2010,per capita real gross domestic product (GDP)in Egypt grew an average of 4.8% per year.At that rate,according to the Rule of 70,in roughly how many years will the Egyptian economy double in size?

Accepted Answer

The Rule of 70 is a way to estimate the number of years it takes for a quantity to double, given a specific annual growth rate. It is calculated by dividing 70 by the annual growth rate. For Egypt's GDP growth rate of 4.8%, the calculation is 70 / 4.8 ≈ 14.58, which rounds to approximately 15 years.

Question 6

A(n)________ in the amount of resources will tend to ________ economic growth.

Accepted Answer

The answer of A(n)________ in the amount of resources will...

Question 7

In 1950,Nicaragua and Brazil had roughly the same sized economies.Now,Brazil's economy is almost five times as large as Nicaragua's.This is likely because:

Accepted Answer

Brazil's larger economy is likely due to the fact that it has better resources and technology compared to Nicaragua. Brazil has a vast array of natural resources including minerals, agricultural land, and a large workforce. Additionally, Brazil has invested heavily in technology and research, particularly in the areas of biotechnology, aerospace, and renewable energy. Nicaragua, on the other hand, has fewer resources and has struggled with political instability and economic challenges over the years.

Question 8

Resources are:

Accepted Answer

Resources refer to the inputs that are used to produce goods and services. These inputs can include things like labor, capital, natural resources, and technology. Therefore, the correct choice is B.

Question 9

The inputs used to produce goods and services are also known as:

Accepted Answer

Inputs used to produce goods and services are commonly referred to as resources, which can include natural resources, labor, and capital. Costs refer to the expenses incurred in the production process, while output refers to the final goods and services produced. Prices refer to the monetary value placed on goods and services in the marketplace, and institutions refer to organizations and structures that facilitate economic activity.

Question 10

From 2006 to 2010,per capita real gross domestic product (GDP)in China grew an average of 10.62% per year.At that rate,according to the Rule of 70,in roughly how many years will Chinese per capita real GDP double in size,beginning in 2006?

Accepted Answer

Using the Rule of 70, we can estimate the number of years it takes for a quantity to double by dividing 70 by the annual growth rate as a percentage. In this case, 70/10.62 = 6.6 years. Therefore, Chinese per capita real GDP will double in approximately 6.6 years from 2006. So, the correct answer is D.

Question 11

From 2006 to 2010,per capita real gross domestic product (GDP)in Croatia grew an average of 1.08% per year.At that rate,according to the Rule of 70,in roughly how many years will the Croatian economy double in size?

Accepted Answer

The answer of From 2006 to 2010,per capita real gross...

Question 12

From 2006 to 2010,per capita real gross domestic product (GDP)in the Philippines grew an average of 3.16% per year.At that rate,according to the Rule of 70,in roughly how many years will the Filipino economy double in size?

Accepted Answer

The Rule of 70 is a way to estimate the number of years it takes for a quantity to double, given a constant annual growth rate. It is calculated by dividing 70 by the annual growth rate. For a growth rate of 3.16%, 70 / 3.16 ≈ 22 years.

Question 13

From 2006 to 2010,per capita real gross domestic product (GDP)in India grew an average of 7.11% 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

The Rule of 70 states that to find the approximate number of years it takes for a variable to double, divide the number 70 by the annual growth rate of the variable. In this case, 70 divided by the average annual growth rate of 7.11% is approximately 9.8 years, so the answer is (B).

Question 14

An increase in ________ would lead to an increase in long-run economic growth.

Accepted Answer

An increase in resources and technology would lead to an increase in long-run economic growth. This is because resources, such as labor and capital, are essential for economic production, and an increase in resources can lead to an increase in productivity. Additionally, advances in technology can lead to the development of new and more efficient production methods, further increasing productivity and economic growth. Increased consumer spending and borrowing, higher prices and interest rates, and higher government taxes and fees may lead to short-term economic growth, but they are not sustainable in the long run and may actually hinder long-term growth. Imports and exports may also contribute to economic growth, but it is ultimately an increase in productivity and efficiency that leads to sustained growth over time.

Question 15

From 2006 to 2010,per capita real gross domestic product (GDP)in Poland grew an average of 4.71% per year.At that rate,according to the Rule of 70,in roughly how many years will the Polish economy double in size?

Accepted Answer

The Rule of 70 states that to find the doubling time of an investment or economy growing at a constant rate, you divide 70 by the annual growth rate. For Poland's GDP growth rate of 4.71%, the doubling time is approximately 70 / 4.71 = 14.9 years.

Question 16

Saudi Arabia is an oil-rich country in the Middle East.Much of the country is covered by desert,meaning that the nation's food production is very low.Much of its food must be imported from other countries.Does this mean that Saudi Arabia has a very small endowment of natural resources?

Accepted Answer

Saudi Arabia has a significant endowment of natural resources in the form of petroleum.

Question 17

From 2009 to 2010 per capita real gross domestic product (GDP)in the United States grew by 1.8%.At that rate,according to the Rule of 70,in roughly how many years will per capita real GDP double?

Accepted Answer

The answer of From 2009 to 2010 per capita real...

Question 18

From 2006 to 2010,per capita real gross domestic product (GDP)in Japan grew an average of 0.46% per year.At that rate,according to the Rule of 70,in roughly how many years will the Japanese economy double in size?

Accepted Answer

The answer of From 2006 to 2010,per capita real gross...

Question 19

We know that resources are important for economic growth.Which of the following statements about resources is true?

Accepted Answer

Resources can be divided into two main categories, natural and human-made. Natural resources are those that exist in the environment, such as forests, minerals, and water. Human-made resources, also known as capital, are those that have been created through human labor, such as factories, machinery, and infrastructure.

Option A is incorrect because not all resources are human-made. Some resources, like natural minerals or water, exist in nature regardless of human intervention.

Option B is incorrect because many resources are truly scarce, meaning they are limited and in high demand, such as rare metals or fossil fuels.

Option D is incorrect because countries have different endowments of resources depending on factors like geography, climate, and history.

Option E is incorrect because some countries are better at exploiting resources for economic growth than others, depending on factors like government policies, technology, and access to markets.

Question 20

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

Accepted Answer

Natural resources are materials that are found in nature and are used for economic gain, such as minerals, forests, water, and oil. Coal is a natural resource because it is a fossil fuel found in the earth's crust. The other options, such as obtaining a college degree, a factory, a loaf of bread, and wireless networking equipment, are not natural resources.

Quiz 13: Economic Growth and the Wealth of Nations

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

Which of the following are the three major categories of resources?

Japan is a nation of over 6,800 islands,none of which is very large.The largest island,Honshu,is roughly the same size as the state of Montana in the western United States.Does this mean that Japan is destined to have low economic growth and standards of living?

An example of physical capital is:

From 2006 to 2010,per capita real gross domestic product (GDP) in Egypt grew an average of 4.8% per year.At that rate,according to the Rule of 70,in roughly how many years will the Egyptian economy double in size?

A(n) in the amount of resources will tend to economic growth.

In 1950,Nicaragua and Brazil had roughly the same sized economies.Now,Brazil's economy is almost five times as large as Nicaragua's.This is likely because:

Resources are:

The inputs used to produce goods and services are also known as:

From 2006 to 2010,per capita real gross domestic product (GDP) in China grew an average of 10.62% per year.At that rate,according to the Rule of 70,in roughly how many years will Chinese per capita real GDP double in size,beginning in 2006?

From 2006 to 2010,per capita real gross domestic product (GDP) in Croatia grew an average of 1.08% per year.At that rate,according to the Rule of 70,in roughly how many years will the Croatian economy double in size?

From 2006 to 2010,per capita real gross domestic product (GDP) in the Philippines grew an average of 3.16% per year.At that rate,according to the Rule of 70,in roughly how many years will the Filipino economy double in size?

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

An increase in ________ would lead to an increase in long-run economic growth.

From 2006 to 2010,per capita real gross domestic product (GDP) in Poland grew an average of 4.71% per year.At that rate,according to the Rule of 70,in roughly how many years will the Polish economy double in size?

Saudi Arabia is an oil-rich country in the Middle East.Much of the country is covered by desert,meaning that the nation's food production is very low.Much of its food must be imported from other countries.Does this mean that Saudi Arabia has a very small endowment of natural resources?

From 2009 to 2010 per capita real gross domestic product (GDP) in the United States grew by 1.8%.At that rate,according to the Rule of 70,in roughly how many years will per capita real GDP double?

From 2006 to 2010,per capita real gross domestic product (GDP) in Japan grew an average of 0.46% per year.At that rate,according to the Rule of 70,in roughly how many years will the Japanese economy double in size?

We know that resources are important for economic growth.Which of the following statements about resources is true?

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

Quiz 13: Economic Growth and the Wealth of Nations

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

Which of the following are the three major categories of resources?

Japan is a nation of over 6,800 islands,none of which is very large.The largest island,Honshu,is roughly the same size as the state of Montana in the western United States.Does this mean that Japan is destined to have low economic growth and standards of living?

An example of physical capital is:

From 2006 to 2010,per capita real gross domestic product (GDP) in Egypt grew an average of 4.8% per year.At that rate,according to the Rule of 70,in roughly how many years will the Egyptian economy double in size?

A(n) ________ in the amount of resources will tend to ________ economic growth.

In 1950,Nicaragua and Brazil had roughly the same sized economies.Now,Brazil's economy is almost five times as large as Nicaragua's.This is likely because:

Resources are:

The inputs used to produce goods and services are also known as:

From 2006 to 2010,per capita real gross domestic product (GDP) in China grew an average of 10.62% per year.At that rate,according to the Rule of 70,in roughly how many years will Chinese per capita real GDP double in size,beginning in 2006?

From 2006 to 2010,per capita real gross domestic product (GDP) in Croatia grew an average of 1.08% per year.At that rate,according to the Rule of 70,in roughly how many years will the Croatian economy double in size?

From 2006 to 2010,per capita real gross domestic product (GDP) in the Philippines grew an average of 3.16% per year.At that rate,according to the Rule of 70,in roughly how many years will the Filipino economy double in size?

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

An increase in ________ would lead to an increase in long-run economic growth.

From 2006 to 2010,per capita real gross domestic product (GDP) in Poland grew an average of 4.71% per year.At that rate,according to the Rule of 70,in roughly how many years will the Polish economy double in size?

Saudi Arabia is an oil-rich country in the Middle East.Much of the country is covered by desert,meaning that the nation's food production is very low.Much of its food must be imported from other countries.Does this mean that Saudi Arabia has a very small endowment of natural resources?

From 2009 to 2010 per capita real gross domestic product (GDP) in the United States grew by 1.8%.At that rate,according to the Rule of 70,in roughly how many years will per capita real GDP double?

From 2006 to 2010,per capita real gross domestic product (GDP) in Japan grew an average of 0.46% per year.At that rate,according to the Rule of 70,in roughly how many years will the Japanese economy double in size?

We know that resources are important for economic growth.Which of the following statements about resources is true?

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

A(n) in the amount of resources will tend to economic growth.