Question 1

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?

Accepted Answer

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

Question 2

Last year the imaginary nation of Freedonia had a population of 2,800 and real GDP of 16,800,000.This year it had a population of 2,700 and real GDP of 15,390,000.About what was the growth rate of real GDP per person between last year and this year?

Accepted Answer

To calculate the growth rate of real GDP per person, we divide the change in real GDP by the change in population and then multiply by 100 to get a percentage.

Change in real GDP = 15,390,000 - 16,800,000 = -1,410,000
Change in population = 2,700 - 2,800 = -100

Growth rate of real GDP per person = (-1,410,000/-100)*(100/16,800,000) = 0.8385

Multiplying by 100, we get approximately -5%. Therefore, the best choice is (B) -5 percent.

Question 3

The rate of real economic growth

Accepted Answer

Income growth measures often fail to account for improvements in quality and new products, leading to an underestimation of real economic growth.

Question 4

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

Accepted Answer

Child mortality is higher in Mali than in the United Kingdom. According to data from the World Bank, in 2019, the child mortality rate in Mali was 69 deaths per 1,000 live births, while in the UK it was only 3 deaths per 1,000 live births. The other options are higher in the UK than in Mali. According to the same source, in 2018, the UK had a higher income per person ($42,330) compared to Mali ($901), higher modern sanitation access (100% compared to 34% in Mali), and a higher percentage of the population enrolled in college (49% compared to 1% in Mali).

Question 5

In 2010,the imaginary nation of Bovina had a population of 5,000 and real GDP of 600,000.In 2011 it had a population of 5,200 and real GDP of 636,480.During 2011 real GDP per person in Bovina grew by

Accepted Answer

Real GDP per person in 2010 was 600,000/5,000 = 120. In 2011, it was 636,480/5,200 = 122. The growth rate is (122-120)/120 = 0.0167 or about 1.67%, which is approximately 2%, similar to the average U.S. growth rate over the last century.

Question 6

In 2010,the imaginary nation of Bovina had a population of 5,000 and real GDP of 500,000.In 2011 it had a population of 5,100 and real GDP of 520,200.During 2011 real GDP per person in Bovina grew by

Accepted Answer

Real GDP per person can be calculated by dividing real GDP by the population. 
Real GDP per person in 2010 = 500,000/5,000 = 100 
Real GDP per person in 2011 = 520,200/5,100 = 102 
Therefore, the growth in real GDP per person from 2010 to 2011 is (102-100)/100 = 0.02 or 2%. 
This is higher than the average U.S. growth over the last 100 years, which has been around 1.8%. Therefore, choice C is the best answer.

Question 7

In 2012,the imaginary nation of Kanmiw had a population of 8,044 and real GDP of 36,198,000.In 2013 it had a population of 7,800 and real GDP of 35,880,000.What was the growth rate of real GDP per person in Kanmiw between 2012 and 2013?

Accepted Answer

To find the growth rate of real GDP per person, we can divide the change in real GDP by the change in population and then multiply by 100 to get a percentage:

Change in real GDP = 35,880,000 - 36,198,000 = -318,000
Change in population = 7,800 - 8,044 = -244
Growth rate = (-318,000 / 8,044) / 100 = -3.95%
 
However, we need to be careful with our signs. A negative growth rate means the economy actually shrank, which doesn't make sense in this context. We know that the real GDP decreased slightly, but the population decreased as well, so there was actually a slight increase in real GDP per person. Therefore, we need to take the absolute value of the growth rate:

Growth rate = |-3.95%| = 3.95% ≈ 4%
 
The closest answer choice is C) 2.2 percent, which is not quite correct. However, none of the answer choices is close enough to be considered partially correct, so C) is the best choice.

Question 8

Last year real GDP in the imaginary nation of Oceania was 561.0 billion and the population was 2.2 million.The year before,real GDP was 500.0 billion and the population was 2.0 million.What was the growth rate of real GDP per person during the year?

Accepted Answer

The answer of Last year real GDP in the imaginary...

Question 9

Last year real GDP in the imaginary nation of Populia was 907.5 billion and the population was 3.3 million.The year before real GDP was 750 billion and the population was 3 million.What was the growth rate of real GDP per person during the year?

Accepted Answer

The growth rate of real GDP per person is calculated as the percentage change in real GDP per person from one year to the next. In this case, real GDP per person in the year before was 750 billion / 3 million = 250 billion. Real GDP per person in the last year was 907.5 billion / 3.3 million = 275 billion. The percentage change in real GDP per person is (275 - 250) / 250 * 100 = 10%.

Question 10

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

Accepted Answer

Real GDP per person in 2009 was 210,000/7,000 = 30. In 2010, it was 223,380/7,300 = 30.6. The growth rate is (30.6 - 30) / 30 = 0.02 or 2%, which is about the same as the average U.S. growth rate over the last one-hundred years.

Question 11

Last year real GDP per person in the imaginary nation of Olympus was 4,250.The year before it was 4,100.By about what percentage did Olympian real GDP per person grow during the period?

Accepted Answer

The percentage change in real GDP per person is calculated as [(New GDP - Old GDP) / Old GDP] * 100. In this case, the change is [(4,250 - 4,100) / 4,100] * 100 = 3.66%, which is closest to 3.7%.

Question 12

In 2011,the imaginary nation of Maconia had a population of 8,200 and real GDP of 210,500.Maconia had 5% growth in real GDP per person.In 2012 it had a population of 8,400.To the nearest dollar what was real GDP in Maconia in 2012?

Accepted Answer

To find the real GDP in 2012, first calculate the real GDP per person in 2011, which is 210,500 / 8,200 = 25.67. With a 5% growth, the real GDP per person in 2012 is 25.67 * 1.05 = 26.9535. Multiply this by the 2012 population: 26.9535 * 8,400 = 226,416.

Question 13

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?

Accepted Answer

Real GDP growth rate = 2.9%Population growth rate = 4%Real GDP growth rate = Population growth rate + Productivity growth rate2.9% = 4% + Productivity growth rateProductivity growth rate = 2.9% - 4% = -1.1%Therefore, the correct answer is C) 4% population growth and 7% real GDP growth.

Question 14

In 2010,the imaginary nation of Mainland had a population of 6,000 and real GDP of 120,000.In 2011 the population was 6,200 and real GDP of 128,960.Over the year in question,real GDP per person in Mainland grew by

Accepted Answer

To calculate the real GDP per person in Mainland, we need to divide the real GDP by the population.

Real GDP per person in 2010: 120,000 / 6,000 = 20 
Real GDP per person in 2011: 128,960 / 6,200 = 20.78

The growth rate of real GDP per person can be calculated as:

(20.78 - 20) / 20 x 100% = 3.9%

Since the growth rate is closest to 4%, the best answer is C. It is important to note that this growth rate is higher than the average U.S. growth rate over the last one-hundred years, which was around 2% per year.

Quiz 12: Production and Growth: Economic Growth Around the World