Week 5

The world's poorest country is: A) Nigeria. B) Argentina. C) India. D) the Democratic Republic of the Congo.

D) the Democratic Republic of the Congo.

The supply of savings function shows the relationship between saving and: A) consumption. B) income. C) age. D) the interest rate.

D) the interest rate.

At an average growth rate of 4%, approximately how long would it take for an economy to double its GDP? A) 17.5 years B) 25 years C) 50 years D) 70 years

A) 17.5 years

Roughly what percent of the world's population live in countries with per capita GDP lower than the average world per capita GDP? A) 80% B) 50% C) 25% D) 10%

A) 80%

Which statement best describes the economic growth patterns in the world since World War II? A) Japan and South Korea experienced rapid growth while Argentina and Nigeria experienced slow growth. B) Japan and South Korea experienced slow growth while Argentina and Nigeria experienced rapid growth. C) Most countries in the world experienced rapid growth. D) Most countries in the world except the United States experienced no growth at all.

A) Japan and South Korea experienced rapid growth while Argentina and Nigeria experienced slow growth.

From 1950 to 1970 Japan's growth rate was: A) high and positive. B) low and positive. C) approximately zero. D) negative.

A) high and positive.

Most of the world's population: A) is poor relative to the United States. B) is about as well off as the average person in the United States. C) is wealthy relative to the United States. D) cannot be compared to the United States.

A) is poor relative to the United States.

Two thousand years ago, per capita GDP (in 2010 dollars) was: A) less than $1,000. B) about $10,000. C) more than $50,000. D) about the same as today.

A) less than $1,000.

The price of savings is: A) the interest rate. B) the investment rate. C) the savings rate. D) the rate of time preference.

A) the interest rate.

Investment is: A) the purchase of new capital goods. B) the purchase of new consumption goods. C) the purchase of gold and silver during inflationary times. D) the purchase of shares of stock on the New York Stock Exchange

A) the purchase of new capital goods.

Since 1974 Nigeria's growth rate has been: A) high and positive. B) low and positive. C) approximately zero. D) negative.

D) negative.

Beginning in the ...... century, economic growth became a clear trend in parts of the world. A) sixteenth B) seventeenth C) eighteenth D) nineteenth

D) nineteenth

Relative to Japan, Argentina was ...... in 1950 and ..... in 2000. A) poor; poor B) rich; rich C) poor; rich D) rich; poor

D) rich; poor

If the average annual growth rate of a country increases from 2% to 3%, how much faster will its GDP double? A) 10 years faster B) 11 2/3 years faster C) 17 years faster D) 25 years faster

B) 11 2/3 years faster

If real GDP per capita in a country were $14,000 in year 1 and $14,280 in year 2, then the economic growth rate for this country from year 1 to year 2 was: A) 1%. B) 2%. C) 3%. D) 4%.

B) 2%

One key fact about economic growth around the world is that: A) most poor countries lack natural resources. B) all countries used to be poor. C) growth has occurred throughout human history. D) the dispersion of GDP per capita has become more equal across countries over time.

B) all countries used to be poor.

Slow economic growth sustained over long periods produces: A) small changes in per capita GDP. B) large changes in per capitaGDP. C) no changes in per capita GDP. D) unpredictable changes in GDP.

B) large changes in per capitaGDP.

When economists speak of "long-run economic growth," they mean increasing the: A) real GDP of a country. B) per capita real GDP of a country. C) geographic size of a country. D) population of a country.

B) per capita real GDP of a country.

On the basis of their role in the financial system, venture capitalists are BEST described as: A) borrowers. B) savers. C) financial intermediaries. D) investors.

B) savers.

For most of recorded history, economic growth has been: A) about the same as today. B) virtually nonexistent. C) a source of continuously rising living standards. D) a way to equalize the distribution of wealth around the world.

B) virtually nonexistent.

Around the world, about one ..... people have incomes of less than $2 per day. A) thousand B) million C) billion D) trillion

C) billion

For most of recorded human history, real GDP per capita has: A) increased at a rapid rate. B) increased at a modest rate. C) remained about the same. D) decreased at a modest rate.

C) remained about the same.

Over the past 200 years, economic growth in the United States has been: A) among the slowest in the world. B) the fastest in the world. C) slow and consistent. D) volatile.

C) slow and consistent.

Today, real GDP per capita is about as large in the richest countries as in the poorest countries. A) twice B) 10 times C) 20 times D) 50 times

D) 50 times

Which country had a growth miracle beginning in the late 1970s? A) United States B) Japan C) North Korea D) China

D) China

Economic growth refers to the growth rate of: A) personal income. B) GNP. C) GDP. D) GDP per capita.

D) GDP per capita.

Two countries that may be considered examples of growth miracles are: A) Mexico and China. B) the United States and Spain. C) Denmark and Luxembourg. D) South Korea and Japan.

D) South Korea and Japan.

For most of recorded human history, long-run economic growth was: A) much higher than it has been in recent decades. B) the same as it is today. C) the highest during the Dark Ages. D) almost nonexistent.

D) almost nonexistent.