Economic Growth Study Guide

Bullville's real GDP is $200,000 and it has a growth rate of 1 percent. Bearland's real GDP is $10,000, and it has a growth rate of 10 percent. Which country experienced the larger increase in goods and services?

Bullville experienced the larger increase in goods and services

Bieberville has a real GDP of $200,000 and a population of 2,000. Gomezopolis has a real GDP of $1,000,000 and a population of 1,000. Which country has the higher real GDP per capita?

Gomezopolis's real GDP per capita is higher.

What is real GDP?

It is the total market value of all final goods and services produced in an economy in a given year, adjusted for inflation.

Which of the following is defined as the total market value, expressed in dollars, of all final goods and services produced in an economy in a given year?

Nominal GDP

Flinstonia has a real GDP of $100,000 and Bedrockton has a real GDP of $100,000,000. Which country has the higher standard of living?

There is not enough information provided to make that determination.

Economic growth can be defined as

a sustained rise over time in a nation's production of goods and services.

To calculate the average economic growth rate over the 10-year period 2002 through 2011,

add the 10 years of real GDP growth rates and divide that number by 10.

Productivity at ABC Chair Co. can be improved by

having workers specialize in specific tasks in chair production.

A measure of standard of living is

real GDP per capita.

Productivity is

the ratio of how much output is produced per unit of input per unit of time