Deck 12: Production and Growth

Question 1

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.

Answer 1

B

Question 2

A country experiencing a growth rate of 12% 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

Answer 2

A

Question 3

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 productivity
D) neither the standard of living nor productivity

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

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 6

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 7

As of 2010, 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 8

A country experiencing a growth rate of 12% 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 12%.
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 12%.
D) three generations. However, in the last couple of decades not even China's growth rate has been this high.

Question 9

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 10

In which of the following countries did real GDP per person fall by about 38% from 1991 to 2011?

A) India
B) Singapore
C) Zimbabwe
D) None of the above are correct.

Question 11

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.

Question 12

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 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

A nation's standard of living is determined by

A) the percentage of its GDP that is accounted for by government purchases.
B) the quantity of natural resources with which it is endowed.
C) the productivity of its workers.
D) factors and events that are beyond the nation's control.

Question 15

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 16

Average income has been stagnant for many years in

A) Western European counties.
B) some Asian countries like South Korea and Singapore.
C) some Sub-Saharan African countries.
D) All of the above are correct.

Question 17

In which of the following countries has economic growth been sufficiently high that income would double every ten years?

A) Singapore
B) Nigeria
C) India
D) Indonesia

Question 18

In which of the following countries has economic growth been sufficiently high that income would double every ten years?

A) India
B) Mexico
C) South Korea
D) Zimbabwe

Question 19

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 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

In 2010, the typical Bangladeshi had about

A) less than half the real income of a typical American a century ago.
B) about the same 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 22

Which of the following countries had the lowest level of real GDP per person in 2010?

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

Question 23

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

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

Question 24

Measured in 2010 dollars, real GDP per person in the United States in 2010 was about

A) $37,000.
B) $47,000.
C) $57,000.
D) $67,000.

Question 25

Which of the following measures how the level of well-being in a country has changed over time?

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

Question 26

Measured in 2010 dollars, real GDP per person in the United States in 2010 was about 14 times that in

A) China.
B) India.
C) Indonesia.
D) Pakistan.

Question 27

Which of the following nations experienced average rates of economic growth of a bit under 2% over the last 100 years or so?

A) Mexico
B) Brazil
C) the United States
D) All of the above are correct.

Question 28

Country A experienced a growth rate of real GDP per person of 2.5 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 29

Over the period 1900-2010, which of the following countries experienced the highest average annual growth rate of real GDP per person?

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

Question 30

Which of the following statements is correct? In 2010,

A) real income per person in the U.S. was about 6 times that in China.
B) real income per person in China was more than 2 times that in India.
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 31

Which of the following statements is correct?

A) In the late 1800s, real GDP per person was higher in the United Kingdom than in the United States.
B) In 2010, real GDP per person was higher in the United Kingdom than in the United States.
C) The average annual growth rate of real GDP was higher in the United Kingdom than in the United States between the late 1800s and 2010.
D) All of the above are correct.

Question 32

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

A) 1.5 percent per year.
B) 2.0 percent per year.
C) 2.5 percent per year.
D) 3.0 percent per year.

Question 33

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 34

Which of the following is correct?

A) Countries with the highest growth rates over the last 120 years are the ones that had the highest level of real GDP 120 years ago.
B) Most countries have had little fluctuation around their average growth rates during the past 120 years.
C) The ranking of countries by income changes little over time.
D) Even though Japan had a higher growth rate of real GDP per person than the U.S. over the last 120 years, it's level of real GDP per person is less than that of the U.S.

Question 35

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 60 years.
C) The ranking of countries by average income changes substantially over time.
D) In some countries real income per person has changed very little over many years.

Question 36

Which of the following countries had the highest level of real GDP per person in 2010?

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

Question 37

In 2010, 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 38

Among the following countries, which one has the highest level of real GDP per person but the lowest growth rate of real GDP per person over a very long period of time?

A) the United Kingdom
B) Mexico
C) Argentina
D) China

Question 39

Among the following countries, which one has the highest growth rate of real GDP per person over about the last 100 years?

A) Argentina
B) Mexico
C) the United Kingdom
D) the United States

Question 40

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 41

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

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

Question 42

Which country has had a higher growth rate than the U.S. over about the last 120 years?

A) India
B) Mexico
C) United Kingdom
D) Pakistan

Question 43

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 44

One can argue that the average American today is "richer" than the richest American 100 years ago, given that 100 years ago,

A) people's nominal incomes were, on average, much lower than they are today.
B) personal fortunes were not accurately measured.
C) many of the goods and services that we now take for granted were not available.
D) international trade had not yet begun to flourish.

Question 45

In 1870, the richest country in the world was

A) Germany.
B) Japan
C) the United Kingdom.
D) the 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 about the last 100 years?

A) Bangladesh, India
B) China, United Kingdom
C) Japan, Brazil
D) Pakistan, Mexico

Question 47

Of the following countries, which grew most slowly, in terms of real GDP per person, over about the last 120 years?

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

Question 48

Last year real GDP per person in the imaginary nation of Olympus was 4,250. The year before it was 4,100. By about what percentage did Olympian real GDP per person grow during the period?

A) 1.6 percent
B) 2.5 percent
C) 3.7 percent
D) 6 percent

Question 49

Which of the following pairs of countries experienced approximately the same rate of growth of real income per person over about the last 120 years?

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

Question 50

Japan is

A) an advanced economy, and over the past century its rate of economic growth has been higher than that of the United States.
B) an advanced economy, and over the past century its rate of economic growth has been lower than that of the United States.
C) a middle-income country, and over the past century its rate of economic growth has been higher than that of the United States.
D) a middle-income country, and over the past century its rate of economic growth has been lower than that of the United States.

Question 51

Which of these countries' growth rates of real GDP per person have exceeded the United States' growth rate of real GDP per person over the last century?

A) Canada and China
B) China and India
C) Germany and India
D) Germany and Pakistan

Question 52

Which country has had a higher growth rate than the US over about the last 120 years?

A) Argentina
B) Germany
C) the United Kingdom
D) None of the above is correct.

Question 53

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 120 years ago.
D) All of the above are correct.

Question 54

Last year the imaginary nation of Freedonia had a population of 2,800 and real GDP of 16,800,000. This year it had a population of 2,700 and real GDP of 15,390,000. About what was the growth rate of real GDP per person between last year and this year?

A) -5.3 percent
B) -5 percent
C) 5 percent
D) 5.3 percent

Question 55

Which of the following statements is correct?

A) In 1870, real income per person was higher in the United States than in any other country at that time.
B) Over about the last 100 years India experienced significantly higher growth of real income per person than did the United States.
C) Over about the last 100 years the United States experienced significantly higher growth of real income per person than did Japan.
D) None 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

Mexico is

A) a poor country, and over the past century its rate of economic growth has been higher than that of the United States.
B) a poor country, and over the past century its rate of economic growth has been lower than that of the United States.
C) a middle-income country, and over the past century its rate of economic growth has been higher than that of the United States.
D) a middle-income country, and over the past century its rate of economic growth has been lower than that of the United States.

Question 58

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 59

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 60

The United Kingdom is

A) an advanced economy, and over the past century its rate of economic growth has been higher than that of the United States.
B) an advanced economy, and over the past century its rate of economic growth has been lower than that of the United States.
C) a middle-income country, and over the past century its rate of economic growth has been higher than that of the United States.
D) a middle-income country, and over the past century its rate of economic growth has been lower than that of the United States.

Question 61

In 2010, the imaginary nation of Bovina had a population of 5,000 and real GDP of 500,000. In 2011 it had a population of 5,100 and real GDP of 520,200. During 2011 real GDP per person in Bovina 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 62

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 63

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 64

In 2012, the imaginary nation of Kanmiw had a population of 8,044 and real GDP of 36,198,000. In 2013 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 Kanmiw between 2012 and 2013?

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

Question 65

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 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

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 68

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 69

In 2011, the imaginary nation of Maconia had a population of 8,200 and real GDP of 210,500. Maconia had 5% growth in real GDP per person. In 2012 it had a population of 8,400. To the nearest dollar what was real GDP in Maconia in 2012?

A) 216,815
B) 221,025
C) 226,416
D) None of the above is correct.

Question 70

In 2012, 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 71

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 72

In 2010, the imaginary nation of Mainland had a population of 6,000 and real GDP of 120,000. In 2011 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 73

Which of the following pairs of terms refer to the same thing?

A) "capital" and "physical capital"
B) "technological knowledge" and "human capital"
C) "standard of living" and "human capital"
D) "standard of living" and "productivity"

Question 74

Last year the imaginary nation of Panglossia had real GDP of 400 billion. This year it had real GDP of 472.5 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 75 million to 72 million.
B) The population decreased from 60 million to 50 million.
C) The population increased from 70 million to 80 million.
D) The population increased from 80 million to 90 million.

Question 75

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 76

In 2010, the imaginary nation of Bovina had a population of 5,000 and real GDP of 600,000. In 2011 it had a population of 5,200 and real GDP of 636,480. During 2011 real GDP per person in Bovina 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 77

In 2012, the imaginary nation of Platland had a population of 10,000 and real GDP of 42,000,000. During the year its real GDP per person grew by about 1.94%. Which of the following sets of growth rates is consistent with this growth in real GDP per person?

A) 3% population growth and 4% real GDP growth
B) 3% population growth and 5% real GDP growth
C) 6% population growth and 4% real GDP growth
D) 6% population growth and 5% real GDP growth

Question 78

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.

Question 79

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 80

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