ECON2105 MIDTERM 2 UGA

market value of all final goods and services produced within a country in a given year

GDP is defined as the: a) market value of all consumer goods purchases within an economy b) market value of all final goods and services produced within a country in a given year c) value of all intermediate goods produced within a country in a given year d) value of all output produced by businesses within a country in a given year

convergence in real GDP per person between poorer countries and richer countries.

Rapid growth in poorer countries leads to: a) inadequate enforcement of property rights. b) convergence in real GDP per person between poorer countries and richer countries. c) divergence in real GDP per person between poorer countries and richer countries. d) higher dependency ratios.

-1.36%

Refer to the table below that shows data for Panama. What was Panama's economic growth rate between 2000 and 2001? a) 2.26% b) -1.36% c) -0.29% d) 5.23%

5

Using 2021 as the base year, the growth rate of Real GDP from 2021 to 2022 was [round to the nearest tenth of a percent]: _________%.

1275

Using 2022 as the base year, Real GDP in 2021 was: $_________.

1335

Using 2022 as the base year, Real GDP in 2022 was: $_________.

9%

What is the growth rate of nominal GDP between the two years using the calculations form the previous two questions and rounded to the nearest percent? a) 4% b) 5% c) 9% d) 11%

4%

What is the growth rate of real GDP between the two years using the calculations form the previous two questions and rounded to the nearest percent? a) 4% b) 5% c) 9% d) 11%

5%

What is the growth rate of the price level between the two years rounded to the nearest percent? a) 4% b) 5% c) 9% d) 11% e) 61.5%

4%

What is the growth rate of the quantity of barrels of oil sold between the two years rounded to the nearest percent? a) 4% b) 5% c) 9% d) 11%

$5,229,000

What is the nominal GDP for this year? a) $4,800,000 b) $5,104,500 c) $5,229,000 d) $4,920,000

$4,920,000

What is the real GDP for last year using the average price level? a) $5,229,000 b) $5,104,500 c) $4,920,000 d) $4,800,000

$5,104,500

What is the real GDP for this year using the average price level? a) $4,800,000 b) $4,920,000 c) $5,104,500 d) $5,229,000

the invention of the light bulb

Which of the following can be classified as technological progress? [check all that apply] a)a rise in the labor force participation rate b)a baby boom c)an increase in the retirement age of a population d) the invention of the light bulb

the same proportion

A constant returns to scale production function is one where increasing all inputs by a certain proportion leads to output rising by: a) the same proportion. b) a smaller proportion. c) exactly double the proportion. d) a larger proportion.

the purchase of a freezer by an ice-cream parlor

An example of investment spending is: a) funds raised by the government in financial markets. b) the purchase of government bonds by a private household. c) the purchase of a freezer by an ice-cream parlor. d) purchases of stock by a mutual fund.

20.58 trillion

Below is US economic data for 2018. What was total spending? Consumption: $13.999 trillion Investment: $3.628 trillion Government spending: $3.591 trillion Exports: $2.510 trillion Imports: $3.148 trillion 20.58 trillion 21.86 trillion 23.73 trillion 21.22 trillion

As real GDP per person rises, maternal and fetal health increase due to better health care, education, sanitation, and nutrition.

Consider the following graphs, which are discussed in the textbook. Focus on the graph that looks at the relationship between GDP per person and infant deaths per 1,000 live births. What can explain this relationship? a) Infant mortality declines only when GDP per person is above $25,000 per year. b) As real GDP per person rises, infant mortality rises. c) As real GDP per person rises, maternal and fetal health increase due to better health care, education, sanitation, and nutrition. d) As life expectancy increases, GDP per person increases at the same rate.

1%

During 2000 and 2001, nominal GDP in the United States grew by 3.2%, and the rate of inflation was 2.2%. What was the growth rate of real GDP between the two years? a) 4.4% b) 5.4% c) 2.2% d) 1%

a worker's skills, made possible by education, training, and knowledge.

Human capital refers to improvements in: a) a worker's skills, made possible by education, training, and knowledge. b) robotics technology that can substitute for human workers. c) technology made available to the workforce. d) production processes, made possible by better machines and equipment.

$35,290

In 2004, Canada's GDP was approximately $1.13 trillion, and its population was about 32 million. What was Canada's approximate GDP per person in 2004? a) $35,290 b) $43,500 c) $3,530 d) $36,160

households buy goods and services

In the market for outputs: a) households sell goods and services b) households buy goods and services c) firms buy resources d) firms supply resources

machine tools

Physical capital includes: [check all that apply] a) a worker's education or knowledge. b) shares of stock. c) money. d) machine tools.

Graph B

Technological advancement can be shown by which of these production functions?

a) total spending must equal total income c) all flows of resources are matched by flows of money d) the market value of total output must be equal to total spending

The Key lessons from this diagram are that: a) total spending must equal total income b) all inputs are provided by businesses c) all flows of resources are matched by flows of money d) the market value of total output must be equal to total spending

Y = f(L, H, K)

The aggregate production function is represented as: a) Y = f(L, H, K) b) K = f(L, H, Y) c) L = f(Y, H, K) d) H = f(L, Y, K)

how long it will take something to double if you divide 70 by its annual growth rate.

The rule of 70 tells us roughly: a) what the total amount of expenditure is in the economy. b) how much unemployment exists in the economy. c) how long it will take something to double if you divide 70 by its annual growth rate. d) how income is distributed in the country.

investment equals depreciation

The steady state in the Solow growth model occurs when: a) depreciation reaches zero. b) savings increases in the economy. c) investment equals depreciation. d) capital accumulation begins.

1200

Using 2021 as the base year, Real GDP in 2021 was: $_________.

1260

Using 2021 as the base year, Real GDP in 2022 was: $_________.

4.7

Using 2022 as the base year, the growth rate of Real GDP from 2021 to 2022 was [round to the nearest tenth of a percent]: _________%.

$61.50

What is the average price level between the two years? a) $123 b) $63 c) $61.50 d) $60

$4,800,000

What is the nominal GDP for last year? a) $4,800,000 b) $4,920,000 c) $5,229,000 d) $5,104,500

GDP does not change

You just bought two used textbooks for $25 each. How much does GDP change because of your purchase? a) GDP rises by $50. b) GDP falls by $50. c) GDP rises by $25. d) GDP does not change.