Homework answers / question archive / 1) Which of the following variables is used to measure economic growth? A) nominal GDP B) nominal GDP per capita C) real GDP D) real GDP per capita   2) The faster economic growth is, the A) steeper the slope of the production possibilities curve

1) Which of the following variables is used to measure economic growth? A) nominal GDP B) nominal GDP per capita C) real GDP D) real GDP per capita   2) The faster economic growth is, the A) steeper the slope of the production possibilities curve

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1) Which of the following variables is used to measure economic growth?

A) nominal GDP

B) nominal GDP per capita

C) real GDP

D) real GDP per capita

 

2) The faster economic growth is, the

A) steeper the slope of the production possibilities curve.

B) farther the production possibilities curve shifts out.

C) closer to the origin the production possibilities curve becomes.

D) more bowed the production possibilities curve becomes.

 

 

 

 

3) Refer to the above table. Which country experienced the greatest economic growth from 2012 to 2013?

A) A

B) B

C) C

D) D

 

4) Does economic growth have any negative side effects?

A) No. Every person in a nation experiencing economic growth will benefit.

B) No, because where negative side effects do occur, a nation's government is required to neutralize them.

C) Quite possibly. Some say economic growth puts people on a never-ending quest to satisfy newly created wants, so we always feel disappointed with our lives.

D) Yes, but only for the poorest segment of a nation's population.

 

5) Suppose two countries have per capita real GDP of $20,000 in 2010. Country A has a growth rate of 4 percent and Country B has a growth rate of 5 percent. By 2013, the per capita real GDPs for the two countries, respectively, are (rounded)

 

A) $21,630 and $22,050.

B) $22,400 and $23,000.

C) $22,500 and $23,150.

D) $25,000 and $26,500.

 

6) One of the problems with the definition of economic growth is that

A) it overstates economic growth because it does not account for leisure time.

B) it does not account for the distribution of income.

C) it overstates economic growth because it does not account for the reduction in work time.

D) it understates economic growth because it does not account for the reduction in work time.

 

7) Which of the following is an example of a measure of labor productivity?

A) Farm workers produce 30 bushels of wheat per worker per day.

B) Autos get 30 gallons to the mile.

C) The growth rate of per capita real GDP is 3.5 percent per year.

D) Wages increase by 3.5 percent per year for 5 years.

 

8) Which one of the following does NOT contribute to economic growth?

A) the growth of capital and labor productivity

B) the growth of the capital stock

C) the growth of the labor force

D) increases in the price level

 

9) A higher rate of saving should lead to

A) higher current consumption.

B) less growth.

C) more investment, higher capital growth, and more future consumption.

D) a higher price level and reduced future consumption.

 

10) Labor productivity can be increased with

A) education and training of the workforce.

B) an increase in capital goods used.

C) improvements in management.

D) all of the above