Economics Week 4 Timed Quiz

Country Alpha and Country Beta initially have the same real GDP per capita. Country Alpha experiences no economic growth, while Country Beta grows at a sustained rate of 5 percent. In 14 years, Country Alpha's GDP will be approximately _________ that of Country Beta.

1/2

Assuming a country's economy maintains an 8% rate of growth, young adults starting at age 20 would see the average standard of living in their country more than double by the time they had reached age __________.

30

When discussing economic growth, it is often useful to focus on ____________, to avoid studying changes in the size of GDP that represent only having more people in the economy, and focus on those increases in GDP which represent an actual rise in the standard of living on a per person basis.

GDP per capita

Which of the following is correct?

Increased education adds to the stock of human capital, not unlike building factories adds to the stock of physical capital.

Which of the following best describes the relationship between economic growth and literacy?

Increased literacy stimulates economic growth by raising labor productivity, and as the economy grows, people consume more education.

Which of the following did not result in economic growth?

Many citizens emigrating from Zimbabwe when a politically repressive regime took office.

_____________________ is a term which refers to the widespread use of power-driven machinery and the economic and social changes that resulted in the first half of the 1800s.

The Industrial Revolution

Economists typically measure economic growth by tracking:

real GDP per capita.

Increased investment alone will guarantee economic growth.

This is a false statement, because economic growth hinges on the quality and type of investment as well as the human capital and improvements in technology.

In macroeconomics, the connection from inputs to outputs for the entire economy is called _______________.

an aggregate production function

When society has a higher level of capital per person, it is called ______________.

capital deepening

Country Able and Country Baker initially have the same real GDP per capita. Country Able experiences no economic growth, while Country Baker grows at a sustained rate of 7 percent. In 12 years, Country Baker's GDP will be approximately ___________ that of Country Able.

double

In the long run, the most important source of increase in a nation's standard of living is a:

high rate of economic growth.

A nation can achieve higher economic growth if:

it devotes more resources to research and development.

The value of what is produced per worker, or per hour worked, is called ____________.

productivity