MACRO Exam Definitions Review Chap 6 & 7 & 8

A country increases its physical capital by engaging in:

Investment

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.

What is an ultimate cause of economic growth among countries around the world?

Luck, culture, and geography are all ultimate causes of growth.

What is the term for the value of a nation's entire stock of assets?

National Wealth

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

Nineteenth

Which country was among the top 10 most-corrupt countries in the year 2000?

North Korea

The stock of tools, including machines, structures, and equipment, used to produce output is called:

Physical Capital

Decreases in the level of political stability in a country tend to:

decrease per capita GDP.

Which of the following is/are NOT an institution of economic growth?

free-riding behavior

From 1950 to 1970 Japan's growth rate was:

high and positive

Countries that have high per capita GDP tend to have:

high levels of all three factors of production. (human capital, physical capital, & technology)

Which is considered an ultimate cause of economic growth?

institutions. ACADEMIAAA

The difference between nominal GDP and real GDP is that NOMINAL GDP:

measures a country's production of finished goods and services at current market prices, whereas REAL GDP measures a country's production of finished goods and services at the same prices in all years.

U.S. farms today produce _________ output using ___________ land as they did in 1950.

more; less

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

per capita less than the world average.

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

per capita real GDP of a country.

National wealth refers to the value of a nation's entire stock of:

physical assets accumulated over time.

Nominal GDP is calculated using:

prices at the time of sale

Most economists prefer _________ as the best indicator of current economic performance.

real GDP growth

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

remained about the same.

Landlocked countries tend to grow _________ because _______________.

slower; lack of water access makes trade more difficult and costly

The poorest country in the world is ___________, whose GDP per capita in 2020 was $271. Based on the data in the figure, about how many times wealthier is the richest country when compared to the poorest country in the world?"

317 times more

Given the GDP at the end of both 2004 and 2005, the growth rate of GDP for 2005 is calculated as:

(GDP2005 - GDP2004) divided by GDP2004 times 100.

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

ALL countries used to be poor

This summer you have a paid internship at the South Korean carmaker Kia Motors at their offices located in Canada. For which nation, or nations, are you contributing to GDP? Assume you are a U.S. citizen.

Canada

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

Economic Growth

The market value of all finished goods and services produced within a given country in a year divided by the country's population is:

GDP per capita.

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

South Korea & Japan

Why are transfer payments NOT counted as part of GDP?

Transfer payments do not involve the purchase of a finished good or service.

According to the national spending approach, which of the following is counted in investment?

a restaurant buys a new wood-fired oven for baking pizzas

There is:

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

Gross domestic product (GDP) is the market value of:

all finished goods and services produced within a country in a year.

Wealthier nations tend to have:

better educational opportunities

An increase in the price you pay for a haircut will:

contribute to GDP as a purchase of a service.

Institutions and incentives are ___________ causes, and factors of productions are __________ causes of the wealth of nations.

ultimate; immediate

In general, during any given year:

wealth in the United States will exceed GDP in the United States.