Exam 11: Economic Growth and the Wealth of Nations

Why is it necessary to adjust changes in nominal gross domestic product GDP) for changes in prices and changes in population i.e., compute per capita real GDP) before using it as a measure of economic growth?

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Question 1

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It is necessary to adjust nominal GDP for changes in prices because an increase in nominal GDP could be a sign that the economy produced more output, which would reflect economic growth. Or, it could be because average prices increased, which would not reflect economic growth. Nominal GDP must also be adjusted for population change to accurately measure standards of living. This is because in order for standard of living to truly increase, it must increase for the average person. Thus, real GDP is divided by population to get a measure of the true standard of living.

In 2013, U.S. gross domestic product GDP) was roughly

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Question 2

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Recently, Greece underwent an economic crisis. Although there are numerous factors that contributed to the crisis, one problem is Greece's tax system, which is very complicated. As a result, numerous Greeks simply choose not to pay their taxes. How does this situation affect Greece's economic growth?

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Question 3

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Annual real per capita gross domestic product GDP) in India was roughly $2,900 in 2000. If it grew by 8 percent the following year, by 2001 the annual real per capita GDP would be

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Question 4

From 2006 to 2010, per capita real gross domestic product GDP) in India grew an average of 7.11 percent per year. At that rate, according to the Rule of 70, in roughly how many years will the Indian economy double in size?

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Question 5

Which of the following would be classified as a natural resource?

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Question 6

Is having abundant resources an absolute guarantee of economic growth and prosperity?

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Question 7

Which of the following represents the technology used in a classroom?

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Question 8

Krista owns a hair salon. She wants to increase the number of clients she serves each month, and she wants to use a technological advance to do so. ________ would represent a technological advance at her hair salon.

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Question 9

One of the most basic reasons why Taiwan is so much wealthier than Liberia is that Taiwan

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Question 10

If you earn a subsistence-level income, much of your time is spent acquiring

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Question 11

What would be the potential impact of a politically motivated monetary policy on economic growth?

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Question 12

From 2013 to 2014, nominal gross domestic product GDP) in the United States increased by

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Question 13

Krista owns a hair salon. She wants to increase the number of clients she serves each month, so she knows she needs to acquire more resources. Which of the following actions would represent an increase in the human capital resource at her hair salon?

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Question 14

The percent change in nominal gross domestic product GDP) minus the percent change in prices and the rate of population growth equals

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Question 15

Lauren owns a bakery. She wants to increase her daily production of baked goods, so she knows she needs to acquire more resources. Which of the following actions would represent an increase in the human capital resource at her bakery?

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Question 16

From 2009 to 2010, nominal gross domestic product GDP) in the United States grew by 3.8 percent. Given that prices increased by 1 percent and per capita real GDP grew by 1.8 percent, we know that the population grew by

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Question 17

From 2009 to 2010, nominal gross domestic product GDP) in the United States grew by 3.8 percent. Given that prices increased by 1 percent and the population grew by 1 percent, we know that per capita real GDP grew by

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Question 18

From 2006 to 2010, per capita real gross domestic product GDP) in Ethiopia grew an average of 7.99 percent per year. At that rate, according to the Rule of 70, in roughly how many years will the Ethiopian economy double in size?

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Question 19

In 1950, Brazil's economy was roughly the same size as Nicaragua's. Today, Brazil's economy is almost five times as large as Nicaragua's. Which of the following most likely explains this difference based on the main drivers of economic growth discussed in the textbook?

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Question 20

Showing 1 - 20 of 174

Why is it necessary to adjust changes in nominal gross domestic product GDP) for changes in prices and changes in population i.e., compute per capita real GDP) before using it as a measure of economic growth?

In 2013, U.S. gross domestic product GDP) was roughly

Annual real per capita gross domestic product GDP) in India was roughly $2,900 in 2000. If it grew by 8 percent the following year, by 2001 the annual real per capita GDP would be

From 2006 to 2010, per capita real gross domestic product GDP) in India grew an average of 7.11 percent per year. At that rate, according to the Rule of 70, in roughly how many years will the Indian economy double in size?

Which of the following would be classified as a natural resource?

Is having abundant resources an absolute guarantee of economic growth and prosperity?

Which of the following represents the technology used in a classroom?

Krista owns a hair salon. She wants to increase the number of clients she serves each month, and she wants to use a technological advance to do so. ________ would represent a technological advance at her hair salon.

One of the most basic reasons why Taiwan is so much wealthier than Liberia is that Taiwan

If you earn a subsistence-level income, much of your time is spent acquiring

What would be the potential impact of a politically motivated monetary policy on economic growth?

From 2013 to 2014, nominal gross domestic product GDP) in the United States increased by

Krista owns a hair salon. She wants to increase the number of clients she serves each month, so she knows she needs to acquire more resources. Which of the following actions would represent an increase in the human capital resource at her hair salon?

The percent change in nominal gross domestic product GDP) minus the percent change in prices and the rate of population growth equals

Lauren owns a bakery. She wants to increase her daily production of baked goods, so she knows she needs to acquire more resources. Which of the following actions would represent an increase in the human capital resource at her bakery?

From 2009 to 2010, nominal gross domestic product GDP) in the United States grew by 3.8 percent. Given that prices increased by 1 percent and per capita real GDP grew by 1.8 percent, we know that the population grew by

From 2009 to 2010, nominal gross domestic product GDP) in the United States grew by 3.8 percent. Given that prices increased by 1 percent and the population grew by 1 percent, we know that per capita real GDP grew by

From 2006 to 2010, per capita real gross domestic product GDP) in Ethiopia grew an average of 7.99 percent per year. At that rate, according to the Rule of 70, in roughly how many years will the Ethiopian economy double in size?

In 1950, Brazil's economy was roughly the same size as Nicaragua's. Today, Brazil's economy is almost five times as large as Nicaragua's. Which of the following most likely explains this difference based on the main drivers of economic growth discussed in the textbook?

Five Foundations of Economics

Model Building and Gains From Trade

The Market at Work: Supply and Demand

Market Outcomes and Tax Incidence

Price Controls

Introduction to Macroeconomics and Gross Domestic Product

Unemployment

The Price Level and Inflation

Savings, Interest Rates, and the Market for Loanable Funds

Financial Markets and Securities

Growth Theory

The Aggregate Demandaggregate Supply Model

The Great Recession, the Great Depression, and Great Macroeconomic Debates

Federal Budgets: the Tools of Fiscal Policy

Fiscal Policy

Money and the Federal Reserve

Monetary Policy Learning Objectives

International Trade

International Finance

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