Question 1

Over the period 1900-2014, which of the following countries experienced the highest average annual growth rate of real GDP per person?

Accepted Answer

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

Question 2

Suppose that in some country the price of silver increased from $30 per ounce to $31 per ounce during a time when the overall price level increased by 5 percent. During this period, the real price of silver

Accepted Answer

A) increased. 
B) decreased. 
C) stayed the same. 
D) might have increased, decreased or stayed the same; more information is needed to be sure.

Question 3

The same size decrease in the amount of capital stock per worker will cause output per worker to fall by more in a country with a relatively high level of capital per worker than in a country with a relatively low level of capital per worker.

Accepted Answer

A) True 
 B)False

Question 4

​Which of the following is a good measure of economic prosperity?

Accepted Answer

A) ​The level of real GDP 
B) The growth rate of real GDP 
C) The level of nominal GDP 
D) The price level

Question 5

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?

Accepted Answer

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 6

Research suggests that taller workers tend to earn more income than shorter workers. What does this suggest about the relationship between workers' height and their productivity?

Accepted Answer

The answer of Research suggests that taller workers tend to...

Question 7

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?

Accepted Answer

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

Exam 25: Production and Growth