Econ chapter 6 practice test

In 2011, Armenia had a real GDP of approximately $4.21 billion and a population of 2.98 million. In 2012, real GDP was $4.59 billion and population was 2.97 million. Armenia's real GDP per person in 2012 was

A) $1,545.

During 2014, the country of Economia had a real GDP of $115 billion and the population was 0.9 billion. In 2013, real GDP was 105 billion and the population was 0.85 billion. In 2013, real GDP per person was

A) $124.

The table above shows the labor market for the country of Pickett. When the labor market is in equilibrium, the real wage rate is ________ and ________ of labor a year are employed.

A) $30 an hour; 40 billion hours

If real GDP is $800 million and aggregate labor hours are 20 million, labor productivity is ________.

A) $40 per hour

The best definition for economic growth is

A) a sustained expansion of production possibilities measured as the increase in real GDP over a given period.

In the above figure, what is the full-employment real wage rate and quantity of hours per year?

B) $40 and 60 billion hours per year

Slowdonia's current growth rate of real GDP per person is 1 percent a year. Approximately how long will it take to double real GDP per person?

B) 70 years

According to the Economic Times (09/2012), Standard & Poor's forecast for India's GDP growth rate was cut by 1 percentage point to 5.5 percent as the entire Asia Pacific region feels the pressure of ongoing economic uncertainty. India has averaged 7 percent growth in GDP since 1997. Which of the following is TRUE?

B) India's PPF has been shifting rightward since 1997.

An increase in a nation's population results in

B) a movement along the nation's production function.

Economic growth is measured by

B) changes in real GDP.

The country of Kemper is on its aggregate production function at point W in the above figure. If the population increases with no change in capital or technology, the economy will

B) move to point such as X.

The country of Kemper is on its aggregate production function at point W in the above figure. The government of Kemper passes a law that makes 4 years of college mandatory for all citizens. After all citizens have their education, the economy will

B) move to point such as Z.

During 2014, the country of Economia had a real GDP of $115 billion and the population was 0.9 billion. In 2013, real GDP was 105 billion and the population was 0.85 billion. In 2014, real GDP per person was

C) $128.

The U.S. employment-to-population ratio peaked in 2000 and in 2012 fell to 58 percent, a level not seen since the early 1980s. This fall in the employment-to-population ratio ________ the equilibrium quantity of labor and ________ potential GDP.

C) decreases; decreases

Suppose real GDP for a country is $13 trillion in 2015, $14 trillion in 2016, $15 trillion in 2017, and $16 trillion in 2018. Over this time period, the real GDP growth rate is

C) decreasing.

When the population increases with no change in labor productivity, employment ________ and potential GDP ________.

C) increases; increases

An increase in the population and hence the supply of labor causes a

C) surplus of labor at the original real wage rate and the real wage rate will fall.

In 2011, Armenia had a real GDP of $4.21 billion and a population of 2.98 million. In 2012, real GDP was $4.59 billion and population was 2.97 million. What was Armenia's economic growth rate from 2011 to 2012?

D) 9.0 percent

Real GDP per person in the country of Flip is $10,000, and the growth rate is 10 percent a year. Real GDP per person in the country of Flap is $20,000 and the growth rate is 5 percent a year. When will real GDP per person be greater in Flip than in Flap?

D) in 15 years

In the above figure, at a wage rate of $20 per hour

D) there is a surplus of labor.