Question 1

If a country has a higher level of productivity than another,then it also has a higher level of real GDP.

Accepted Answer

Higher productivity means a country can produce more output per unit of input, but it doesn't necessarily translate to a higher level of real GDP. Real GDP is influenced by other factors as well, such as the total amount of labor and capital in the economy. A country with lower productivity could still have a higher real GDP if it has significantly more resources or labor.

Question 2

Over the period 1890-2014,Japan experienced a 2.59 percent average annual growth rate of real GDP per person.

Accepted Answer

This statement is true according to data from the World Bank. From 1890 to 2014, Japan had an average annual growth rate of real GDP per capita of 2.59%.

Question 3

According to some estimates,over the last two decades China has had an annual average growth rate of about 12 percent.

Accepted Answer

According to some estimates, China has had an annual average growth rate of about 12 percent over the last two decades.

Question 4

If it could increase its growth rates slightly,a country with low income would catch up with rich countries in about ten years.

Accepted Answer

This statement oversimplifies the complex process of economic development and assumes that growth rates alone are sufficient to lead to income convergence. There are many other factors that can affect a country's development, such as institutional quality, technological innovation, and human capital. Additionally, catching up with rich countries may take much longer than ten years, as historical data has shown.

Question 5

Over the period 1870-2014,the United States experienced an average annual growth rate of real GDP per person of about 1.8 percent per year.

Accepted Answer

This is a widely accepted estimate of long-term economic growth in the United States, based on data from the Bureau of Economic Analysis. Note that this is an average over a long period of time, and there are many factors that can cause year-to-year fluctuations in GDP growth rates.

Question 6

In the United States in 2014 real GDP per person was about $56,000,while in some poor countries real GDP per person was less than $5,000.

Accepted Answer

This statement is true as there is significant variation in real GDP per person across countries, and in 2014, the United States had a real GDP per person of about $56,000 while some poor countries had real GDP per person of less than $5,000.

Question 7

In 2014 income per person in the United States was about 10 times that in India.

Accepted Answer

According to data from the World Bank, in 2014 the United States had a gross national income per capita of $54,630 while India had a gross national income per capita of $5,350, which is approximately 10 times less than in the United States.

Question 8

Journey Motorcycles produced 100 motorcycles using 50 workers who each worked 8 hours a day.Journey's productivity was 1/4.

Accepted Answer

The answer of Journey Motorcycles produced 100 motorcycles using 50...

Question 9

Both the standard of living and the growth of real GDP per person vary widely across countries.

Accepted Answer

This statement is true. Countries differ in terms of their economic development and level of productivity, which affects both their standard of living and their real GDP per person. Some countries have high levels of income and a high quality of life, while others have very low levels of income and poor living conditions.

Question 10

Since 1870 Canadian and U.S real GDP per person grew from below to above that in the United Kingdom.The explanation for this is likely that productivity grew faster in Canada and the U.S.than in the United Kingdom.

Accepted Answer

This statement is correct. The faster growth in real GDP per person in Canada and the U.S. compared to the United Kingdom is likely due to higher productivity growth in these countries.

Question 11

If Country A produces 7,000 units of goods and services using 700 hours of labor,and if Country B produces 5,500 units of goods and services using 500 units of labor,then productivity is lower in Country A than in Country B.

Accepted Answer

Productivity is calculated by dividing the units of goods and services produced by the hours of labor used. Therefore, country A's productivity is 10 units per hour of labor (7000/700), while country B's productivity is 11 units per hour of labor (5500/500). This means that country B has a higher productivity than country A.

Question 12

Over the period 1900-2014,Brazil's rate of economic growth exceeded that of China.

Accepted Answer

The answer of Over the period 1900-2014,Brazil's rate of economic...

Question 13

Productivity can be computed as the number of hours worked divided by output.

Accepted Answer

Productivity is typically computed as output divided by the number of hours worked, not the other way around.

Question 14

If per capita real income grows by 2 percent per year,then it will double in approximately 20 years.

Accepted Answer

According to the rule of 72, to estimate the number of years it takes for an investment to double, you divide 72 by the annual rate of return. In this case, 72/2 = 36. Therefore, per capita real income will double in approximately 36 years, not 20 years.

Question 15

In some countries in Sub-Saharan Africa real GDP per person has been stagnant for many years.

Accepted Answer

Many countries in Sub-Saharan Africa have experienced little to no growth in real GDP per person over the past few decades, leading to stagnant economies and challenging living conditions for many people in the region.

Question 16

International data on real GDP per person gives us a sense of how standards of living vary across countries.

Accepted Answer

Real GDP per person takes into account the economic production of a country in relation to its population, which gives us an idea of the average income and therefore the standards of living in different countries.

Question 17

Although growth rates across countries vary some,rankings of countries by income remain pretty much the same over time.

Accepted Answer

While rankings of countries by income may not change drastically over short periods of time, there are examples of countries that have experienced significant economic growth and moved up in rankings. For example, South Korea and Taiwan both experienced rapid economic growth in the second half of the 20th century and went from low-income to high-income countries. Additionally, there can be changes due to factors such as political instability or natural disasters that can impact a country's income ranking.

Question 18

International data on the history of real GDP growth rates shows that over the last 120 years or so,rich countries got richer and poor countries got poorer.

Accepted Answer

While it is true that many rich countries experienced significant economic growth over the last 120 years, there has also been significant growth in many poor countries during this time period. In fact, some of the fastest growing economies in recent years have been in developing nations. Therefore, it is incorrect to say that poor countries have only gotten poorer.

Question 19

Real GDP per person in rich countries,such as Germany,is sometimes more than 10 times that of poor countries like India.

Accepted Answer

This statement is true. According to World Bank data, as of 2019, the real GDP per capita of Germany was around $47,600 while that of India was around $2,200. This means that the real GDP per person in Germany is more than 10 times that of India.

Question 20

Over the last 140 years or so,on average Canada's real GDP per-person grew faster than that of the U.K.

Accepted Answer

According to historical data, Canada's real GDP per capita has consistently grown at a faster rate than the UK's over the past 140 years.

Quiz 12: Production and Growth: Part B