MacroEconomics mid term
India has a GDP of 23,000 billion Indian rupees, and a population of 1.1 billion. The exchange rate is 50 rupees per U.S. dollar. Calculate the GDP per capita of India as measured in U.S. dollars
$418
The Czech Republic has a GDP of 2,000 billion koruny. The exchage rate is 20 koruny per U.S. dollar. The Czech population is 20 million. Calculate the per capita GDP of the Czech Republic is U.S. dollars
$5,000
Middle-income countries, which include much of Latin America, Eastern, Europe, and some countries in East Asia, have per capita GDP in the range of _____.
$6,000 to $12,000
The change in inventories, a component of aggregate supply, comprises roughly _____ of GDP.
0.5%
Once every __________, the Census Bureau does a comprehensive survey of housing and residential finance.
10 years
In 1980 Denmark had a GDP of $70 billion (measured in U.S. dollars) and a population of 5.1 million. In 2000, Denmark had a GDP of $160 billion (measured in U.S. dollars) s and a population of 5.3 million. By what percentage did Denmark's GDP per capita rise between 1980 and 2000?
120%
During the last two centuries, the average rate of growth rate of GDP per capita in the leading industrialized countries has averaged about _____ per year
2%
A country will roughly double its GDP in twenty years if its annual growth rate is:
3.5 percent
Assuming a country's economy maintains an 8% rate of growth, young adults starting at age 20 would see the average standard of living in their country more than double by the time they had reached age __________.
30
In certain African countries like Niger, Tanzania, Nigeria, and Sudan, for example, GDP per capita at the start of the 2000s was still less than $___________.
300
Durable goods and non-durable goods comprise approximately _____ of the supply side of the GDP.
45%
In 1990, the GDP of Canada was $680 billion as measured in Canadian dollars, and the exchange rate was that $1 was worth about 85 U.S. cents. In 2000, the GDP of Canada was $1000 billion as measured in Canadian dollars, and the exchange rate was that $1 Canadian was worth about 69 U.S. cents. By what percentage did the GDP of Canada increase from 1990 to 2000in Canadian dollars?
47%
Of the world's population of 6.7 billion people, _____ are scraping by on incomes that average less than $2 per day.
5 billion
Consumption in the United States is about _____ of GDP, and it moves relatively little over time.
68%
On the supply side of the GDP, Structures account for around _____ of U.S. GDP.
7%
In Bangladesh during the early 2000s, the literacy rate for girls between the ages of 15 and 24 was _____ and the literacy rate for males in this in this age group was _____.
78%; 75%
_____ , which can be approximated by the growth of gross domestic product, ultimately determines the prevailing standard of living in a country.
Economic growth
Ethiopia has a GDP of $8 billion (measured in U.S. dollars) and a population of 55 million. Costa Rica has a GDP of $9 billion (measured in U.S. dollars) and a population of 4 million. Calculate per capita GDP for each country.
Ethiopia = $145.00 Costa Rica = $2250.00
Which of the following is included in the calculated Gross Domestic Product?
Farmer Freddie sells his second tractor to his son
A nation's prosperity is sometimes is sometimes measured in terms of _____.
GDP
Which of the following statements is true?
GDP includes spending on recreation and travel, but does not cover leisure time
An economy's rate of productivity growth is closely linked to the growth rate of its ______________, although the two aren't identical.
GDP per capita
When discussing economic growth, it is often useful to focus on _____, to avoid studying changes in the size of GDP that represent only having more people in the economy, and the focus on those increases in GDP which represent an actual rise in the standard of living on a per person basis.
GDP per capita
Some prominent members of the slow-economic growth country club include a high-income country like _________.
Germany
Which of the following best describes the relationship between economic growth and literacy?
Increased literacy stimulates initially stimulus economic growth by raising labor productivity, but as the economy grows and the opportunity cost of education rises, literacy declines.
Which of the following did not result in economic growth?
Many citizens emigrating from Zimbabwe when a politically repressive regime took office
_____ is calculated by taking _____ and then subtracting the value of how much physical capital is worn out, or reduced in value of aging, over the course of a year.
NNP; GNP
_____ is a term which refers to the widespread use of power-driven machinery and the economic and social changes that resulted in the first half of the 1800s
The Industrial Revolution
Increased investment alone will guarantee economic growth.
This is false statement, because economic growth hinges on the quality and type of investments as well as the human capital and improvements in technology.
If imports exceed exports, as in recent years, then _____ exists.
a trade deficit
In macroeconomics, the connection from inputs to outputs for the entire is called _____.
an aggregate production function
To compare the GDP of two different countries within different currencies, it is necessary to use _____.
an exchange rate
Which of the following factors contributes to economic growth?
an increase in the proportion of the population that is college educated
Which of the following are most likely classified by economists as consumer durable goods?
automobiles furniture
Investment is human capital:
can be acquired through on-the-job training & is an important source of economic growth
When society has a higher level of capital per person, it is called ______________.
capital deepening
_____ is about two-thirds of the demand side of GDP, but it moves relatively little over time.
consumption
The demand measure of GDP accounting adds together :
consumption investment government purchases trade balance
Country Alpha and Country Beta initially have the same real GDP per capita. Country Alpha experiences no economic growth, while Country Beta grows at a sustained rate of 7 percent. In 12 years, Country Alpha's GDP will be approximately _________ that of Country Beta.
double
A business cycle reflects changes in economic activity, particularly real GDP. The stages of a business cycle are:
expansion peak recession trough
In order to avoid double counting, statisticians just count the _____.
final goods and services
Some recent economic research has suggested that African countries' economic growth may have been limited by __________________.
geography and climate
Final goods or services used to compute GDP refer to:
goods and services purchased by ultimate users
For most high-income countries of the world, GDP _____ over time.
has risen gradually
In the long run, the most source of increase in a nation's standard of a living is a:
high rate of economic growth
Which of the government policies below is most unlikely to encourage per capita economic growth?
high taxes on companies that spend a lot on capital formation
Consumption is the purchase of goods and services by:
households
On the Demand side of GDP, consumption by _____ is the largest component of GDP, accounting for about two-thirds of the GDP in any year.
households
Gross Domestic Product equals $1.2 trillion. If consumption equals $690 billion, investment equals $200 billion , and government spending equals $260 billion, then:
imports exceed exports by $50 billion
Which of the following is most likely to contribute to economic growth as measured by GDP per capita?
increased capital formation
A nation can achieve higher economic growth if:
it devotes more resources to research and development
Country Alpha and Country Beta initially have the same real GDP per capita. Country Alpha experiences no economic growth, while Country Beta grows at a sustained rate of 5 percent. In 14 years, Country Alpha's GDP will be approximately _____ that of Country Beta.
one-half
The value of what business provide to other businesses is captured in the final products at the end of the _____ chain.
production
Over the long run, ____________ per hour is the most important determinant of the average wage level in any economy.
productivity
The value of what is produced per worker, or per hour worked is called _____.
productivity
_____ is output per hour in the business sector.
productivity
To achieve a high standard of living, a nation should:
promote economic growth
The difference between nominal GDP and real GDP is:
real GDP adjusts for inflation
Economists typically measure economic growth by tracking:
real GDP per capita
The nominal value of any economic statistic refers to the number that is actually announced at that time, while the _____ refers to the statistic after it has been adjusted for inflation.
real value
_____ are now the largest single component of the supply side of GDP, representing over half of GDP.
services
Since the late 1950s, economists have performed "growth accounting" studies in the United States. These have determined that ________________ is typically the most important contributor to U.S. economic growth.
technology
Investment (I) includes:
the amount spent on new factories and machinery.
Which of the following is true?
the expansions and contractions of real world business cycles last varying lengths of time and often differ in magnitude
Which of the following is included in GDP?
the fees charged for a stock broker's services
Which of the following is unlikely to affect the rate of economic growth?
the level of government spending
Which of the following is not counted as part of GDP?
the purchase of 100 shares of AT&T stock by your grandfather
GDP is:
the value of all final goods and services produces domestically
GDP does not directly include:
the value of intermediate goods sold during a period
the gap between exports and imports in a nation's economy is called the _____.
trade balance
