Multiple Choice Questions

Economic growth can be portrayed as:
  • either real GDP or real GDP per capita.
  • Total output = worker-hours × labor productivity.
  • move toward more democratic forms of government.
  • an outward shift of the production possibilities curve.
The number of years required for real GDP to double can be found by:
  • dividing 70 by the annual growth rate.
  • either real GDP or real GDP per capita.
  • dividing real GDP by population.
  • increases in the productivity of labor.
Which of the following statements is most accurate about the prospects for poorer ("follower") countries catching up with richer ("leader") countries?
  • Growth of real GDP per capita.
  • Total output = worker-hours × labor productivity.
  • Catching up is possible as "follower countries" tend to grow faster than "leader countries."
  • Modern economic growth is characterized by sustained and ongoing increases in living standards.
Labor productivity is defined as:
  • Total output = worker-hours × labor productivity.
  • an outward shift of the production possibilities curve.
  • total output/worker-hours.
  • Product quality has improved.
Refer to the table. Between years 2 and 3:
  • either real GDP or real GDP per capita.
  • Total output = worker-hours × labor productivity.
  • Alta's real GDP grew more rapidly than Zorn's real GDP.
  • shift from AB to CD.
Which of the following economic regions has experienced the most growth in real GDP per capita since 1820?
  • United States.
  • Growth of real GDP per capita.
  • Africa.
  • Modern economic growth is characterized by sustained and ongoing increases in living standards.
Growth is advantageous to a nation because it:
  • invented and built a more powerful and efficient steam engine.
  • increases in the productivity of labor.
  • either real GDP or real GDP per capita.
  • lessens the burden of scarcity.
If a nation's real GDP is growing by 5 percent per year, its real GDP will double in approximately:
  • 31 percent.
  • 14 years.
  • remain constant.
  • 88 percent.
The percentage of the working-age population in the labor force (= employed + officially unemployed) is called the:
  • labor force participation rate.
  • 31 percent.
  • technological advance.
  • 88 percent.
Economic growth is best defined as an increase in:
  • either real GDP or real GDP per capita.
  • dividing real GDP by population.
  • Alta's real GDP grew more rapidly than Zorn's real GDP.
  • an outward shift of the production possibilities curve.
Human capital refers to:
  • the skills and knowledge that enable a worker to be productive.
  • Total output = worker-hours × labor productivity.
  • public capital goods such as highways and sanitation systems.
  • the fact that large producers may be able to use more efficient technologies than smaller producers.
If a nation's real GDP increases from 100 billion to 106 billion and its population jumps from 200 million to 212 million, it real GDP per capita will:
  • real GDP must increase more rapidly than population.
  • 14 years.
  • real GDP declined.
  • remain constant.
Real GDP per capita is found by:
  • dividing real GDP by population.
  • Alta's real GDP grew more rapidly than Zorn's real GDP.
  • dividing 70 by the annual growth rate.
  • can grow either more slowly or more rapidly than real GDP.
Network effects are:
  • can grow either more slowly or more rapidly than real GDP.
  • increased due to higher wages, expanded job accessibility, changing preferences and attitudes, and other factors.
  • increases in the value of a product to each user, including existing users, as the total number of users rises.
  • increases in the productivity of labor.
Economies of scale refer to:
  • an outward shift of the production possibilities curve.
  • increases in the value of a product to each user, including existing users, as the total number of users rises.
  • increased due to higher wages, expanded job accessibility, changing preferences and attitudes, and other factors.
  • the fact that large producers may be able to use more efficient technologies than smaller producers.
Under what circumstances do rates of economic growth understate the growth of economic well-being?
  • Unrestricted trade between nations.
  • Growth of real GDP per capita.
  • increases in the productivity of labor.
  • Product quality has improved.
Which of the following statements is most accurate about modern economic growth?
  • Modern economic growth is characterized by sustained and ongoing increases in living standards.
  • Catching up is possible as "follower countries" tend to grow faster than "leader countries."
  • Unrestricted trade between nations.
  • Growth of real GDP per capita.
Which of the following best measures improvements in the standard of living of a nation?
  • Growth of real GDP per capita.
  • Africa.
  • Unrestricted trade between nations.
  • United States.
Suppose total output (real GDP) is $4,000 and labor productivity is $We can conclude that:
  • Growth of real GDP per capita.
  • the number of worker-hours must be 500.
  • Unrestricted trade between nations.
  • move toward more democratic forms of government.
Strong property rights are important for modern economic growth because:
  • increased due to higher wages, expanded job accessibility, changing preferences and attitudes, and other factors.
  • people are more likely to invest if they don't fear that others can take their returns on investment without compensation.
  • increases in the value of a product to each user, including existing users, as the total number of users rises.
  • Modern economic growth is characterized by sustained and ongoing increases in living standards.
The Industrial Revolution and modern economic growth resulted in:
  • tend to exceed those in leader countries because followers can cheaply adopt the new technologies that leaders developed at relatively high costs.
  • the average human lifespan more than doubling.
  • dividing 70 by the annual growth rate.
  • lessens the burden of scarcity.
The largest contributor to increases in the productivity of American labor is:
  • technological advance.
  • labor force participation rate.
  • Growth of real GDP per capita.
  • shift from AB to CD.
Refer to the table. Between years 1 and 2, real GDP grew by __________ percent in Alta.
  • shift from AB to CD.
  • Growth of real GDP per capita.
  • 5
  • Alta's real GDP grew more rapidly than Zorn's real GDP.
For a nation's real GDP per capita to rise during a year:
  • real GDP must increase more rapidly than population.
  • public capital goods such as highways and sanitation systems.
  • Total output = worker-hours × labor productivity.
  • increases in the productivity of labor.
Refer to the graph. Growth of production capacity is shown by the:
  • Unrestricted trade between nations.
  • Growth of real GDP per capita.
  • shift from AB to CD.
  • technological advance.
A nation's infrastructure refers to:
  • the skills and knowledge that enable a worker to be productive.
  • public capital goods such as highways and sanitation systems.
  • Total output = worker-hours × labor productivity.
  • an outward shift of the production possibilities curve.
(Consider This) Over the past several decades, the percentage of women in the paid U.S. workforce has:
  • increases in the value of a product to each user, including existing users, as the total number of users rises.
  • increases in the productivity of labor.
  • people are more likely to invest if they don't fear that others can take their returns on investment without compensation.
  • increased due to higher wages, expanded job accessibility, changing preferences and attitudes, and other factors.
Economic historians date the start of the Industrial Revolution around the year 1776, when James Watt:
  • invented and built a more powerful and efficient steam engine.
  • tend to exceed those in leader countries because followers can cheaply adopt the new technologies that leaders developed at relatively high costs.
  • increased due to higher wages, expanded job accessibility, changing preferences and attitudes, and other factors.
  • lessens the burden of scarcity.
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Multiple Choice Questions
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