Economics Modules 37-38

According to the "Rule of 70," if a country's real GDP per capita grows at a rate of 2% per year, it will take how many years for real GDP per capita to double? 3.5 35 20 70 It will never double at that rate.

35

Long-run economic growth depends almost entirely on technological change. population growth. rising real GDP per capita. increased labor force participation. rising productivity.

rising productivity.

Which of the following is true regarding growth rates for countries around the world compared to the United States? 1) Fifty percent of the world's people live in countries with a lower standard of living than the U.S. in 1908; 2) The U.S. growth rate is six times the growth rate in the rest of the world; 3) China has only just attained the same standard of living the U.S. had in 1908. 1 only 2 only 1, 2, and 3 1 and 3 only 3 only

1 and 3 only

Which of the following is a source of increased productivity growth? 1) increased physical capital; 2) increased human capital; 3) technological progress. 1, 2, and 3 3 only 1 only 1 and 2 only 2 only

1, 2, and 3

If a country's real GDP per capita doubles in 10 years, what was its average annual rate of growth of real GDP per capita? 70% 3.5% 7% 10% 700%

7%

formula

70/%=how many years

The following statement describes which area of the world? "This area has experienced growth rates unprecedented in history and now looks like an economically advanced country." Europe Africa North America Latin America East Asia

East Asia

Which of the following is cited as an important factor preventing long-run economic growth in Africa? lack of property rights political instability unfavorable geographic conditions poor health all of the above

all of the above

Which of the following is an example of physical capital? money machinery education healthcare all of the above

machinery

Which of the following is the key statistic used to track economic growth? median real GDP per capita median real GDP GDP real GDP per capita real GDP

real GDP per capita

The "convergence hypothesis" has been proven by evidence from around the world. states that low levels of real GDP per capita are associated with higher growth rates. states that differences in real GDP per capita among countries widen over time. states that low levels of real GDP per capita are associated with lower growth rates. contradicts the "Rule of 70."

states that low levels of real GDP per capita are associated with higher growth rates.