Econ 102 Exam 2 Part 3

The real wage rate equals

(money wage rate)/(price level)

Suppose that in 2015 a country has a population of 1 million and real GDP of 1 billion. In 2016 the population is 1.1 million and the real GDP is 1.1 billion. The real GDP per person growth rate is

0

During 2014, the country of Economia had a real GDP of 115 billion of the population as .9 billion. In 2013, real GDP was 105 billion and the population was .85 billion. In 2014, real GDP per person was

128

The tables above show the labor market and the production function schedule for the country of Pickett. Potential GDP is

14 trillion

Suppose a nation population grows by 2 percent and at the same time its GDP grows by 5%. Approximately how fast will real GDP per person increase

3% per year.

During 2013 the country of Economia had a GDP of 115 billion and the population was .9 billion. In 2012 real GDP was 105 billion and the population was .85 billion. Economias growth rate of real GDP per person is

3.4%

Slowdonias current growth rate of real GDP per person is 2 percent a year. How long will it take to double real GDP per person?

35 years

Using the rule of 70, if the country of Huttofoms current growth rate of real GDP per person was 10% a year, how long would it take the countrys real GDP per person to double.

7 years

Slowdonias current growth rate of real GDP per person is 1% a year. Approximately how long will it take to double real GDP per person?

70 years

In 2011 Armenia had a real GDP of 4.21 billion and a population of 2.98 million. I 2012 real GDP was 4.59 billion and population was 2.97 million. What was Armenias economic growth rate from 2011 to 2012

9 %

Real GDP per person in the country of Flip is 10000 and the growth rate is 10% a year. Real GDP per person in the country of Flap is 20000 and the growth rate is 5 percent a year. When will real GDP per person be greater in Flip than in Flap.

In 15 years.

The best definition for economic growth is

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

Neoclassical growth theory predicts that

advances in technology increase the productivity of capital, which leads to an increase in investment and rising real GDP per person.

Saving and investment that increase a nations capital lead to

an increase in labor productivity

The view that population growth occurs when real GDP per person exceeds the amount necessary to sustain life is part of the

classical growth theory

If capital per hour of labor decreases, real GDP per hour of labor

decreases for a given level of technology

Suppose real GDP for a country is 13 trillion in 2015, 14 trillion in 2016 and 15 trillion in 2017, and 16 trillion in 2018. Over this time period, the real GDP is 1.1 billion. The per person growth rate is

decreasing

The gaps between the US and the Asian counties of Hong Kong, Singapore, Korea, and China have been

decreasing

The decreasing slope of a production function reflects

diminishing returns

If a nations population grows then

growth in real GDP per person will be less than the growth of real GDP

We are interested in long term growth primarily because it brings

higher standards of living

Labor productivity increases with

increases in capital

Technological change

increases potential GDP

The tables above show the labor market and the production schedule for the country of Pickett, AN increase in population changes the labor supply by 20 billion hours at each real wage rate. Potential GDP

increases to 18 trillion

A decrease in population shifts the

labor curve leftward

Moving along the aggregate production function shows the relationship between holding all else constant

labor input and real GDP

According to the law of diminishing returns an additional unit of

labor produces less output than the previous unit

If capital per worker rises

labor productivity increases

A higher saving rate leads to faster growth because

more saving produces greater additions to capital per hour of labor raising real GDP per person

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

move to point such as X

Factors that influence labor productivity include

physical capital, human capital, and technology

An increase in labor productivity relates to

producing the same output with fewer labor hours

If workers money wage rates increase by 5% and the price level remains constant workers

quantity of labor supplied will increase

Labor productivity is defined as

real GDP per hour of labor

The quantity of labor demanded depends on the

real wage rate not the money wage rate

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. Armenias real GDP per person in 2012 was

1545

If real GDP per person is growing at 4% per year, approximately how many years will it take to double.

17.5

During the last 50 years which of the following had the lowest level of real GDP per person?

Africa

Which of the following ideas apply to the neoclassical growth theory? The rate of technological change influence the rate of economic growth Technological change promotes saving and investment Convergence of econmic growth rates across countries

I, II, III

Which of the following statements regarding human capital is incorrect?

Education is the only vehicle for the creation of human capital because training simply reinforces what has already been learned.

If the price level increases and workers money wage rates remains constant, which of the following will occur? The quantity of labor supplied decrease the real wage rate will decrease the labor supply curve will shift right ward

I and II

which of the following statements is correct Higher savings rates can stimulate economic growth Limiting international trade can stimulate economic growth

I only

According to the economic times, standard and poors forecast for Indias GDP growth rate was cut by 1% to 5.5% as the entire Asia pacific region feels the pressure of ongoing economic uncertainty. India has averaged 7% growth in GDP since 1997. Which is true?

Indias PPF has been shifting rightward since 1997

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

Move to point such as Z

Which of the following is used to calculate the standard of living?

Real GDP/population

If a rich country grows at a faster rate than a poor one, then

The gap in their standards of living will widen over time

Which of the following statements regarding US economic growth is not correct

The growth rate for real GDP per person accelerated between 1973 to 1984

Classical growth theory proposes that real GDP growth is and that real GDP per person will the subsistence

temporary, temporarily be above

According to the economic times, Standards and Poors forecast for Indias GDP growth rate was cut by 1 percentage point to 5.5 percent as the entire Asia Pacific feels the pressure of ongoing economic uncertainty. India has averaged 7 percent growth in GDP sincec 1997. Based on this story, it is most likely that the slow down reflects a

tempotary business cycle slowdown

A movement along the aggregate production dunction is the result of a change in

the quantity of labor