Deck 7: Production and Growth

Question 1

A country experiencing a growth rate of 8% per year can go from being one of the poorest to one of the richest in

A) one generation. In the last couple of decades China's growth rate has been higher than 8%.
B) one generation. However, in the last couple of decades not even China's growth rate has been this high.
C) three generations. In the last couple of decades China's growth rate has been higher than 8%.
D) three generations. However, in the last couple of decades not even China's growth rate has been this high.

Answer 1

A

Question 2

Over the last century, U.S. real GDP per person grew at a rate of about

A) 2 percent per year, so that it is now 2 times as high as it was a century ago.
B) 2 percent per year, so that it is now 8 times as high as it was a century ago.
C) 4 percent per year, so that it is now 2 times as high as it was a century ago.
D) 4 percent per year, so that it is now 8 times as high as it was a century ago.

Answer 2

B

Question 3

Average income has been stagnant for many years in

A) Argentina.
B) India.
C) Senegal.
D) All of the above are correct.

Answer 3

C

Question 4

Which of the following are residents of rich countries likely to have in greater quantities, or better quality, than residents of poor countries?

A) housing
B) healthcare
C) life expectancy
D) All of the above.

Question 5

The average income in a rich country, such as the United States or Japan, is more than

A) 3 times, but less than 5 times, the average income in a poor country, such as Indonesia or Nigeria.
B) 5 times, but less than 10 times, the average income in a poor country, such as Indonesia or Nigeria.
C) 10 times, but less than 20 times, the average income in a poor country, such as Indonesia or Nigeria.
D) more than 20 times the average income in a poor country, such as Indonesia or Nigeria.

Question 6

Productivity is the amount of goods and services

A) an economy produces. It is not linked to a nation's economic policies.
B) an economy produces. It is linked to a nation's economic policies.
C) produced for each hour of a worker's time. It is not linked to a nation's economic policies.
D) produced for each hour of a worker's time. It is linked to a nation's economic policies.

Question 7

The average income in a rich country

A) is about 5 times that in a poor country. Further, people in rich countries have longer life expectancy.
B) is about 5 times that in a poor country. However, people in rich countries have about the same life expectancy as those in poor countries.
C) is more than ten times that in a poor country. Further, people in rich countries have longer life expectancy.
D) is more than ten times that in poor country. However, people in rich countries have about the same life expectancy as those in poor countries.

Question 8

In recent decades, average income in some East Asian countries, such as South Korea, Singapore, and Taiwan, has risen about

A) 2 percent per year.
B) 4 percent per year.
C) 7 percent per year.
D) 10 percent per year.

Question 9

Which of the following is a good gauge of economic progress?

A) the level of real GDP per person, but not the growth rate of real GDP per person
B) the level of real GDP per person and the growth rate of real GDP per person
C) the growth rate of real GDP per person, but not the level of real GDP per person
D) neither the level nor the growth rate of real GDP per person

Question 10

Average income has been stagnant for many years in

A) Chad.
B) Gabon.
C) Senegal.
D) All of the above are correct.

Question 11

In which of the following countries has economic growth been sufficiently strong in recent history to propel that country from being among the poorest in the world to being among the richest in the world?

A) India
B) Mexico
C) Senegal
D) Singapore

Question 12

Average income has been stagnant for many years in

A) Gabon.
B) Ireland.
C) Singapore.
D) All of the above are correct.

Question 13

In some East Asian countries, average income, as measured by real GDP per person, has recently grown at an average annual rate that implies output will double about every

A) 10 years.
B) 15 years.
C) 20 years.
D) 25 years.

Question 14

Over the past century in the United States, average income as measured by real GDP per person has grown about

A) 4 percent per year, which implies a doubling about every 18 years.
B) 4 percent per year, which implies a doubling about every 8 years.
C) 2 percent per year, which implies a doubling about every 35 years.
D) 2 percent per year, which implies a doubling about every 18 years.

Question 15

In the United States, as measured by real GDP per person, average income is about how many times as high as average income a century ago?

A) 2
B) 4
C) 6
D) 8

Question 16

Over the past 100 years, U.S. real GDP per person has doubled about every 35 years. If it continues to double every 35 years, then in 100 years U.S. real GDP per person will be about

A) 4 times higher than it is now.
B) 8 times higher than it is now.
C) 12 times higher than it is now.
D) 16 times higher than it is now.

Question 17

In which of the following countries has economic growth been sufficiently strong in recent history to propel that country from being among the poorest in the world to being among the richest in the world?

A) South Korea
B) Senegal
C) India
D) Indonesia

Question 18

Over the past century in the United States, real GDP per person has grown, on average, by about

A) 1 percent per year.
B) 2 percent per year.
C) 3 percent per year.
D) 5 percent per year.

Question 19

A country experiencing a growth rate of 8% per year can go from being one of the poorest to one of the richest in how many generations?

A) one
B) two
C) three
D) four

Question 20

During the past century the average growth rate of U.S. real GDP per person implies that it doubled, on average, about every

A) 100 years.
B) 70 years.
C) 35 years.
D) 25 years.

Question 21

Countries that grew the fastest over the last 100 or so years had growth rates of real income per person of about

A) 0.5 percent per year.
B) 1.5 percent per year.
C) 2.0 percent per year.
D) 2.5 percent per year.

Question 22

Country A experienced a growth rate of real GDP per person of 0.5 percent per year throughout the 1900's. In view of other countries' experiences, country A's growth was

A) exceptionally high.
B) moderately high.
C) moderately low.
D) exceptionally low.

Question 23

A nation's standard of living is best measured by its

A) real GDP.
B) real GDP per person.
C) nominal GDP.
D) nominal GDP per person.

Question 24

Country A experienced a growth rate of real GDP per person of 4 percent per year throughout the 1900's. In view of other countries' experiences during this time country A's growth was

A) exceptionally high.
B) moderately high.
C) moderately low.
D) exceptionally low.

Question 25

Which of the following countries had the highest level of real GDP per person in 2008?

A) Germany
B) United Kingdom
C) United States
D) Japan

Question 26

If one wants to know how the material well-being of the average person has changed over time in a given country, one should look at the

A) level of real GDP.
B) growth rate of nominal GDP.
C) growth rate of real GDP.
D) growth rate of real GDP per person.

Question 27

As of 2008, using real GDP per person as a measure, we would classify

A) the United States and Mexico as advanced economies and Bangladesh as a middle-income country.
B) Canada as an advanced economy, Mexico as a middle-income country, and Pakistan as a poor country.
C) Japan and India as advanced economies and Mexico as a poor country.
D) Japan as an advanced economy, the United Kingdom as a middle-income country, and Argentina as a poor country.

Question 28

Which of the following can be measured by the level of real GDP per person?

A) productivity and the standard of living
B) productivity but not the standard of living
C) the standard of living but not productivy
D) neither the standard of living nor productivity

Question 29

Which of the following statements is correct? In 2008,

A) real income per person in the U.S. was about 8 times that in China.
B) real income per person in China was about 2 times that in India in 2008.
C) the typical resident of India had less real income than the typical resident of England in 1870.
D) All of the above are correct.

Question 30

The average citizen of India in 2008 had

A) less real income than the typical resident of Canda in 1870.
B) less real income than the typical resident of the United Kingdom in 1870.
C) higher real income than a resident of Japan in 2008.
D) higher real income than a resident of China in 2008.

Question 31

Which of the following is not correct?

A) Across countries there are large differences in the average income per person. These differences are reflected in large differences in the quality of life.
B) With a growth rate of about 2 percent per year, average income per person doubles about every 35 years.
C) The ranking of countries by average income changes very little over time.
D) In some countries real income per person has changed very little over many years.

Question 32

Which of the following countries had the highest growth rate over the last 100 or so years?

A) Brazil
B) Germany
C) Canada
D) United States

Question 33

Countries that have lower levels of real GDP per person than the United States

A) tend to have growth rates that are higher than that of the United States.
B) tend to have growth rates that are about the same as that of the United States.
C) tend to have growth rates that are lower than that of the United States.
D) in some cases have growth rates that are higher than that of the United States and in other cases lower than that of the United States.

Question 34

Which of the following countries had the lowest level of real GDP per person in 2008?

A) Bangladesh
B) Indonesia
C) Mexico
D) China

Question 35

In 2008, real GDP per person in Bangladesh was

A) about 3 times as high as it was in the U.S. in 1870.
B) about twice as high as it was in the U.S. in 1870.
C) about the same as it was in the U.S. in 1870.
D) less than it was in the U.S. in 1870.

Question 36

Which of the following nations experienced average rates of economic growth of less than 2 percent over the last 100 years?

A) Bangladesh
B) Pakistan
C) United Kingdom
D) All of the above are correct.

Question 37

Which of the following is correct?

A) Countries with the highest growth rates over the last 100 years are the ones that had the highest level of real GDP 100 years ago.
B) Most countries have had little fluctuation around their average growth rates during the past 100 years.
C) The ranking of countries by income changes substantially over time.
D) Over the last 100 years, Japan had the highest real GDP growth rate, and now has the highest real GDP per person.

Question 38

The level of real GDP person

A) differs widely across countries, but the growth rate of real GDP per person is similar across countries.
B) is very similar across countries, but the growth rate of real GDP per person differs widely across countries.
C) and the growth rate of real GDP per person are similar across countries.
D) and the growth rate of real GDP per person vary widely across countries.

Question 39

In 2008, the typical Bangladeshi had about

A) 1/5 the real income of a typical American a century ago.
B) 1/3 the real income of a typical American a century ago.
C) 2 times as much real income as that of a typical American a century ago.
D) 4 times as much real income as that of a typical American a century ago.

Question 40

Over the period 1900-2008, which of the following countries experienced the highest average annual growth rate of real GDP per person?

A) Indonesia
B) India
C) Pakistan
D) Brazil

Question 41

Which of the following statements is correct?

A) In 1870, real income per person was higher in the United Kingdom than in any other country at that time.
B) Between 1870 and 2008, India experienced significantly higher growth of real income per person than did the United States.
C) Between 1870 and 2008, the United States experienced significantly higher growth of real income per person than did Canada.
D) All of the above are correct.

Question 42

In 2009, the imaginary nation of Viloxia had a population of 5,000 and real GDP of 500,000. In 2010 it had a population of 5,100 and real GDP of 520,200. During 2009 real GDP in Viloxia grew by

A) 2 percent, which is high compared to average U.S. growth over the last one-hundred years.
B) 2 percent, which is about the same as average U.S. growth over the last one-hundred years.
C) 4 percent, which is high compared to average U.S. growth over the last one-hundred years.
D) 4 percent, which is about the same as average U.S. growth over the last one-hundred years.

Question 43

Over the last 100 years which of the following had growth rates higher than that of the United States?

A) the United Kingdom
B) India
C) Mexico
D) None of the above is correct.

Question 44

In 2009, the imaginary nation of Florastan had a population of 8,044 and real GDP of 36,198,000. In 2010 it had a population of 7,800 and real GDP of 35,880,000. What was the growth rate of real GDP per person in Florastan between 2009 and 2010?

A) -2.2 percent
B) -0.7 percent
C) 2.2 percent
D) 4.5 percent

Question 45

Of the following countries, which grew most slowly, in terms of real GDP per person, over the last 100 years?

A) Brazil
B) Mexico
C) China
D) United States

Question 46

Which list contains, in this order, a country whose real GDP per person grew faster and one whose real GDP per person grew slower than real GDP per person in the U.S. over the last 100 years?

A) China, Pakistan
B) United Kingdom, China
C) Pakistan, Argentina
D) Argentina, Japan

Question 47

Last year Panglossia had real GDP of 27.0 billion. This year it had real GDP of 31.5 billion. Which of the following changes in population is consistent with a 5 percent growth rate of real GDP per person over the last year?

A) The population decreased from 88 million to 84 million.
B) The population decreased from 75 million to 73 million.
C) The population increased from 45 million to 50 million.
D) The population increased from 60 million to 62 million.

Question 48

Last year real GDP per person in the imaginary nation of Olympus was 4,500. The year before it was 4,250. By about what percentage did Olympian real GDP per person grow during the period?

A) 4.6 percent
B) 5.2 percent
C) 5.9 percent
D) 6.5 percent

Question 49

Last year real GDP in the imaginary nation of Oceania was 561.0 billion and the population was 2.2 million. The year before, real GDP was 500.0 billion and the population was 2.0 million. What was the growth rate of real GDP per person during the year?

A) 12 percent
B) 10 percent
C) 4 percent
D) 2 percent

Question 50

Which of the following pairs of countries experienced approximately the same rate of growth of real income per person over the last 100 or so years?

A) Germany and Japan
B) Indonesia and the United Kingdom
C) the United States and Japan
D) Mexico and Pakistan

Question 51

In 2009, the imaginary nation of Dorados had a population of 8,000 and real GDP of 3,000,000. During the year its real GDP grew by about 2.9%. Which of the following sets of growth rates is consistent with this growth in real GDP?

A) 2% population growth and 6% real GDP growth
B) 6% population growth and 2% real GDP growth
C) 4% population growth and 7% real GDP growth
D) 7% population growth and 4% real GDP growth

Question 52

Which of the following is correct?

A) Over the last 100 years Japan had a higher average growth rate than the United States. It follows that, today, the standard of living in Japan is higher than in the United States.
B) The typical person in Bangladesh today has about twice the real income of a typical American 100 years ago.
C) The typical citizen of China today has about one-half as much real income as the typical citizen of America today.
D) None of the above is correct.

Question 53

In 2009, the imaginary nation of Florastan had a population of 8,300 and real GDP of 190,900. Florastan had 5% growth in real GDP per person. In 2010 it had a population of 8,400. What was real GDP in Florastan in 2010?

A) 200,445
B) 202,860
C) 198,059
D) None of the above is correct.

Question 54

In 2009, the imaginary nation of Mainland had a population of 6,000 and real GDP of 120,000. In 2010 the population was 6,200 and real GDP of 128,960. Over the year in question, real GDP per person in Mainland grew by

A) 2 percent, which is high compared to average U.S. growth over the last one-hundred years.
B) 2 percent, which is about the same as average U.S. growth over the last one-hundred years.
C) 4 percent, which is high compared to average U.S. growth over the last one-hundred years.
D) 4 percent, which is about the same as average U.S. growth over the last one-hundred years.

Question 55

Which of the following is indicated by the data on real income per person for various countries over the past 100 or so years?

A) If, in a relatively poor country, real income per person had grown by 3.5 percent per year for the last 100 years, it would be a relatively rich country today.
B) Rich countries became richer and poor countries became poorer.
C) In the United States, real income per person today is about four times as high as it was 100 years ago.
D) All of the above are correct.

Question 56

Last year real GDP in the imaginary nation of Populia was 907.5 billion and the population was 3.3 million. The year before real GDP was 750 billion and the population was 3 million. What was the growth rate of real GDP per person during the year?

A) 10 percent
B) 14 percent
C) 17 percent
D) 21 percent

Question 57

Last year the imaginary nation of Freedonia had a population of 2,700 and real GDP of 16,200,000. This year it had a population of 2,500 and real GDP of 14,640,000. What was the growth rate of real GDP per person between last year and this year?

A) -2.4 percent
B) -0.7 percent
C) 4.4 percent
D) 5.2 percent

Question 58

In 1870, the richest country in the world was

A) the United States.
B) Spain.
C) the United Kingdom.
D) Germany.

Question 59

In 2009, the imaginary nation of Mainland had a population of 7,000 and real GDP of 210,000. In 2010 the population was 7,300 and real GDP of 223,380. Over the year in question, real GDP per person in Mainland grew by

A) 2 percent, which is high compared to average U.S. growth over the last one-hundred years.
B) 2 percent, which is about the same as average U.S. growth over the last one-hundred years.
C) 4 percent, which is high compared to average U.S. growth over the last one-hundred years.
D) 4 percent, which is about the same as average U.S. growth over the last one-hundred years.

Question 60

Which of the following correctly ranks the three countries, from highest to lowest, for percentage of high-school age children in school?

A) United Kingdom, Mali, Mexico.
B) Mexico, Mali, United Kingdom.
C) United Kingdom, Mexico, Mali.
D) Mali, Mexico, United Kingdom.

Question 61

Which of the following is correct?

A) Although levels of real GDP per person vary substantially from country to country, the growth rate of real GDP per person is similar across countries.
B) Productivity is not closely linked to government policies.
C) The level of real GDP per person is a good gauge of economic prosperity, and the growth rate of real GDP per person is a good gauge of economic progress.
D) Productivity may be measured by the growth rate of real GDP per person.

Question 62

Strike Out Bowling Balls produces 800 bowling balls per day using 2 workers who each work 8 hours per day. What is Strike Out's productivity?

A) 800 bowling balls
B) 100 bowling balls per hour
C) 50 bowling balls per hour
D) None of the above is correct.

Question 63

Phoenix furniture uses 10 workers, each working eight hours, to produce 80 rocking chairs. What is Phoenix's productivity?

A) 80 rocking chairs
B) 10 rocking chairs per hour
C) 1 rocking chair per hour
D) 1 hour per rocking chair

Question 64

Over the last ten years productivity grew faster in Oceania than in Freedonia and the population and total hours worked remained the same in both countries. It follows that

A) real GDP per person must be higher in Oceania than in Freedonia.
B) real GDP per person grew faster in Oceania than in Freedonia.
C) the standard of living must be higher in Oceania than in Freedonia.
D) All of the above are correct.

Question 65

In one day Alpha Cabinet Company made 40 cabinets with 320 hours of labor. What was Alpha Cabinet Company's productivity?

A) 1/8 cabinet per hour
B) 8 hours per cabinet
C) 40 cabinets
D) None of the above is correct.

Question 66

In determining living standards, productivity plays a key role

A) for individuals, but not for nations.
B) for nations, but not for individuals.
C) for both nations and individuals.
D) for neither nations nor individuals.

Question 67

Over the last ten years productivity grew more slowly in Upland than in Lowland and the population and total hours worked remained the same in both countries. It follows that

A) real GDP per person must be lower in Upland than in Lowland.
B) real GDP per person grew more slowly in Upland than in Lowland.
C) the standard of living must be higher in Upland than in Lowland.
D) All of the above are correct.

Question 68

Suppose that real GDP grew more in Country A than in Country B last year.

A) Country A must have a higher standard of living than country B.
B) Country A's productivity must have grown faster than country B's.
C) Both of the above are correct.
D) None of the above are correct.

Question 69

Which of the following is a correct way to measure productivity?

A) Divide the number of hours worked by the quantity of output.
B) Divide the quantity of output by the number of hours worked.
C) Determine how much output is produced in a given time.
D) Determine how much time it takes to produce a unit of output.

Question 70

Which of the following statements is true?

A) Productivity is calculated as hours worked divided by output produced.
B) Americans have a higher standard of living than Indonesians because American workers are more productive than Indonesian workers.
C) Both A and B are correct.
D) None of the above are correct.

Question 71

Which of the following is not correct?

A) Countries that have had higher output growth per person have typically done so without higher productivity growth.
B) A country's standard of living and its productivity are closely related.
C) Productivity refers to output produced per hour of work.
D) Increases in productivity can be used to increase output or leisure.

Question 72

The key determinant of the standard of living in a country is

A) the amount of goods and services produced from each hour of a worker's time.
B) the total amount of goods and services produced within the country.
C) the total amount of its physical capital.
D) its growth rate of real GDP.

Question 73

Productivity

A) is nearly the same across countries, and so provides no help explaining differences in the standard of living across countries.
B) explains very little of the differences in the standard of living across countries.
C) explains some, but not most of the differences in the standard of living across countries.
D) explains most of the differences in the standard of living across countries.

Question 74

Given that a country's real output has increased, in which of the following cases can we be sure that its productivity also has increased?

A) The total number of hours worked rose.
B) The total number of hours worked stayed the same.
C) The total number of hours worked fell.
D) Both b and c are correct.

Question 75

In 2009, the imaginary nation of Platland had a population of 10,000 and real GDP of 42,000,000. During the year its real GDP grew by about 1.98%. Which of the following sets of growth rates is consistent with this growth in real GDP?

A) 1% population growth and 3% real GDP growth
B) 3% population growth and 1% real GDP growth
C) 3% population growth and 6% real GDP growth
D) 6% population growth and 3% real GDP growth

Question 76

The one variable that stands out as the most significant explanation of large variations in living standards around the world is

A) productivity.
B) population.
C) preferences.
D) prices.

Question 77

For a given year, productivity in a particular country is most closely matched with that country's

A) level of real GDP over that year.
B) level of real GDP divided by hours worked over that year.
C) growth rate of real GDP divided by hours worked over that year.
D) growth rate of real GDP per person over that year.

Question 78

Which of the following would, by itself, reveal the most about a country's standard of living?

A) its level of capital
B) the number of hours worked
C) its availability of natural resources
D) its productivity

Question 79

Productivity is the

A) key determinant of living standards, and growth in productivity is the key determinant of growth in living standards.
B) key determinant of living standards, but growth in productivity is not the key determinant of growth in living standards.
C) not the key determinant of living standards, but growth in productivity is the key determinant of growth in living standards.
D) not the key determinant of living standards, and growth in productivity is not the key determinant of growth in living standards.

Question 80

Productivity is defined as the quantity of

A) labor required to produce a nation's GDP.
B) labor required to produce one unit of goods and services.
C) goods and services produced from each unit of labor input.
D) goods and services produced per unit of time.