PCT24.1: Pre-Class Tutorial: Economic Growth I + BR24.1: Bridge: Economic Growth I + PCT24.2 Economic Growth II + BR24.2: Bridge: Economic Growth II

If China's economy maintains a 7% annual growth rate over the next 20 years, about how large will its economy be in 20 years if its current GDP is $12 trillion?

$48 trillion

If Greenville's GDP doubled over 5 years, what was the approximate annual growth rate (using the rule of 70)?

14%

Which of the following would represent the fastest annual growth of GDP per capita?

An increase in real GDP of 5% and population growth of 1%.

Suppose Hyperpolis's GDP increases by 15%, and its inflation rate is 12%, while Superpolis's GDP increases by 6%, and its inflation rate is 3%. Assuming the population in both countries remained constant, which economy grew faster?

Both economies grew at the same rate.

Which of the following scenarios would result in economic growth in the country of Everland?

GDP doubles while prices remain the same.

GDP per capita in the countries of Neverland and Everland are 2,000 and 500, respectively. This suggests that, other things being equal, the returns from capital investment would be:

Greater in Everland.

Which of the following government actions would represent the largest increase in physical capital?

Investment in hospitals and other health care facilities to modernize their operations.

If Galaxia has a GDP that is 10 times larger than that of Myopia, which country would likely have greater marginal returns to capital based on the law of diminishing marginal returns to capital?

Myopia

Which of the following policies would likely not promote economic growth?

Reducing the number of student visas issued to international students.

Why does a small difference in economic growth result in a large difference in wealth over time?

The effect of compounding allows growth to build upon previous growth.

Suppose the production function for the country of Westlandia is Q = K + L, where Q is output, K is capital, and L is labor. Which of the following statements is true about this production function?

Westlandia could achieve economic growth with labor alone.

All of the following are considered factors of production except

a vacant piece of land that has never been used. an antique sewing machine that Jill still uses to alter clothes. Randy, who has worked as a mechanic for twenty years. All of the above are factors of production.