Unit 2 Chapter 22 Quiz

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.

1/2

Of the world's population of 6.7 billion people, _________ are scraping by on incomes that average less than $2 per day.

2.6

In certain African countries like Niger, Tanzania, Nigeria, and Sudan, for example, GDP per capita (to the closest value) at the start of the 2000s was still less than $___________.

300

In macroeconomics, the connection from inputs to outputs for the entire economy is called _______________.

NOT: human capital

A nation can achieve higher economic growth if

NOT: taxes are imposed on investment in capital

Which of the following best describes the relationship between economic growth and literacy?

Increased literacy stimulates economic growth by raising labor productivity, and as the economy grows, people consume more education.

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 for the first time by the time they had reached age __________.

NOT: 60 or 50

Which of the following factors contribute to economic growth?

NOT: An increase in the average wage rate paid to workers. increase in standard of living.

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 focus on those increases in GDP which represent an actual rise in the standard of living on a per person basis.

NOT: Economic Growth. consumption and expenditures

Which of the following is unlikely to affect the rate of economic growth?

NOT: The quality of available resources

Economists typically measure economic growth by tracking:

NOT: The unemployment rate. Average GDP growth

Increased investment alone will guarantee economic growth

NOT: This is a false statement, because an economy must rely capital injections from abroad.

Country Able and Country Baker initially have the same real GDP per capita. Country Able experiences no economic growth, while Country Baker grows at a sustained rate of 7 percent. In 12 years, Country Baker's GDP will be approximately ___________ that of Country Able.

NOT: Triple

Which of the following is most likely to contribute to economic growth as measured by GDP per capita?

NOT: an increase in marginal tax rates

Over the long run, ____________ per hour is the most important determinant of the average wage level in any economy.

Productivity

To achieve a high standard of living, a nation should:

Promote economic wealth

_____________________ 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

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

Which of the following is correct?

increase in education

_________ is output per hour in the business sector.

productivity