ch. 7 practice quiz

If U.S. per capita GDP is $50,000 and grows at 5% per year, what will U.S. per capita GDP be in 70 years?

$1.6. million

If U.S. per capita GDP is $50,000 and grows at 2% per year, what will U.S. per capita GDP be in 70 years?

$200,000

At an average growth rate of 4%, approximately how long would it take for an economy to double its GDP?

17.5 years

Suppose a country's annual growth rate of real GDP per capita is approximately 2%. By which year would the country double its real GDP per capita from $10,000 in 1950 to $20,000?

1985

If real GDP per capita in a country was $14,000 in year 1 and $14,280 in year 2, then the economic growth rate for this country from year 1 to year 2 was:

2%

At an annual growth rate of 3.5%, approximately how long does it take for real GDP per capita to increase from $30,000 to $60,000 in a country?

20 years

(Figure: The Distribution of World Income) Refer to the figure. Based on the data in the figure, living standards in the United States are about how many times higher than the world average?

3

If real GDP per capita in a country was $14,000 in year 1 and $14,420 in year 2, then the economic growth rate for this country from year 1 to year 2 was:

3%

At an annual growth rate of 2%, approximately how long does it take for real GDP per capita to increase from $30,000 to $60,000 in a country?

35 years

Which country had a growth miracle beginning in the late 1970s?

South Korea

Two countries that may be considered examples of growth miracles are:

South Korea and Japan

Over the past 200 years, economic growth in the United States has been:

slow and consistent

If U.S. per capita GDP is $50,000 and grows at 3% per year, what will U.S. per capita GDP be in 70 years?

$400,00

According to the rule of 70, a country with an annual growth rate of 10% will double its GDP per capita in:

7 years

Suppose a country's real GDP per capita was $9,000 in 1990, and it grew to $18,000 by 2000. What is the annual growth rate of the country's real GDP per capita during this period?

7%

The rule of 70 states that if the annual growth rate of a variable is x%, the necessary time for doubling is:

70 divided by x

Piped water and flush toilets together can reduce infant mortality from diarrhea by approximately:

70% or more

Between 1974 and 2005, Nigeria's growth rate was:

approximately zero

Wealthier nations tend to have:

better educational opportunities

Around the world, about one _____ people have incomes of less than $2 per day.

billion

In general, increases in a country's wealth will cause infant survival rates to:

increase

Most of the world's population:

is poor relative to the United States.

Low rates of economic growth sustained over long periods produce:

large changes in per capita GDP

Two thousand years ago, per capita GDP (in 2010 dollars) was:

less than $1,000

Wealthier countries have:

more material goods

The correlation between infant mortality and real GDP per capita is:

negative

Beginning in the _____ century, economic growth became a clear trend in parts of the world.

nineteenth

Fully 73% of the world's population live in countries with a GDP:

per capita less than the world average

Economic growth is measured by the growth rate of:

real GDP per capita

The rule of 70 indicates that an increase in the growth rate of a variable will _____ the time needed to double living standards.

reduce

The world's poorest country is:

the Democratic Republic of the Congo

For most of recorded history, economic growth has been:

virtually nonexistent

Relative to Japan, Argentina was _____ in 1950 and _____ in 2000.

rich; poor

Relative to South Korea, Argentina was _____ in 1950 and _____ in 2000

rich; poor

Relative to China, Argentina was _____ in 1950 and _____ in 2007.

rich; rich

For most of recorded human history, real GDP per capita has:

remained about the same

If real GDP per capita in a country was $14,000 in year 1 and $14,140 in year 2, then the economic growth rate for this country from year 1 to year 2 was:

1%

If a country's real GDP per capita in 1950 was $10,000, and it grew to $20,000 by year 2000, then the country's annual growth rate during this period would have been approximately:

1.4%

According to the rule of 70, a country with an annual growth rate of 7% will double its GDP per capita in:

10 years

(Figure: The Distribution of World Income) Refer to the figure. Based on the data in the figure, about how many times wealthier is the richest country when compared to the poorest countries in the world?

100

At an annual growth rate of 0.7%, approximately how long does it take for real GDP per capita to increase from $30,000 to $60,000 in a country?

100 years

If the average annual growth rate of a country increases from 2%to 3%, how much faster will its GDP double?

11 2/3 years

If real GDP per capita in a country was $14,000 in year 1 and $14,560 in year 2, then the economic growth rate for this country from year 1 to year 2 was:

4%

Today, real GDP per capita is about _____ as large in the richest countries as in the poorest countries.

50 times

At an annual growth rate of 1.4%, approximately how long does it take for real GDP per capita to increase from $30,000 to $60,000 in a country?

50 years

In the year 2014, the world's average per capita GDP was $14,517. What percent of the world's population lived in a country with per capita GDP that was below $14,517?

73%

Roughly what percent of the world's population live in countries with per capita GDP lower than the average world per capita GDP?

75%

If the GDP of country X is 4 times the GDP of country Y and if the GDP of country X remains constant while GDP of country Y grows at a rate of 7% per year, which of the following statements is true?

Country Y's GDP will be equal to country X's GDP in 20 years.

Economic growth refers to the growth rate of:

GDP per capita

Which statement best describes the cross-country evidence on the relationship between a nation's GDP per capita and standard measures of societal well-being?

GDP per capita is positively related to measures of societal well-being.

Which statement best describes the economic growth patterns in the world since World War II?

Japan and South Korea experienced rapid growth, while Argentina and Nigeria experienced slow growth.

There is: a) a strong positive correlation between per capita GDP and infant survival. b) a weak positive correlation between per capita GDP and infant survival. c) no correlation between per capita GDP and infant survival. d) a weak negative correlation between per capita GDP and infant survival.

a strong positive correlation between per capita GDP and infant survival.

One key fact about economic growth around the world is that:

all countries used to be poor

For most of recorded human history, long-run economic growth was:

almost nonexistent

Every year, 1.8 million children in poor countries die of diarrhea. What is most effective in preventing these deaths?

economic growth

From 1950 to 1970 Japan's growth rate was:

high and positive

Relative to the United States, Argentina was _____ in 1950 and _____ in 2000.

poor; poor

Data from countries around the world suggest that "health and wealth" (measured by infant survival rates and real GDP per capita) are:

positively related

When economists speak of "long-run economic growth," they mean increasing the:

real GDP of a country

A country's GDP per capita and infant survival rates usually are:

strongly correlated