Question 1

Real GDP was $9,950 billion in Year 1 and $10,270 billion in Year 2.What was the approximate rate of economic growth from Year 1 to Year 2?

Accepted Answer

A)  1.6 percent
B)  2.4 percent
C)  3.2 percent
D)  4.3 percentE) A) and B)
F) B) and D) C

Question 2

Suppose total output (real GDP)  is $10,000 and worker-hours are 20,000.We can conclude that:

Accepted Answer

A)  real GDP per capita must be $200,000.
B)  the price-level index must be less than 100.
C)  labour productivity must be 0.5.
D)  nominal GDP must be between $10,000 and $20,000.E) B) and C)
F) A) and B)

Question 3

The average living standards in Canada compared to Africa are much higher because:

Accepted Answer

A)  the economic growth has occurred for nearly two centuries in Africa compared to a few decades in Canada.
B)  the economic growth has occurred for nearly two centuries in Canada compared to more than two centuries in Africa.
C)  the economic growth differences have no relationship to the differences in the average standards of living.
D)  the economic growth has occurred for nearly two centuries in Canada compared to a few decades in Africa.E) None of the above
F) A) and C)

Question 4

Real GDP per capita is found by:

Accepted Answer

A)  adding real GDP and population.
B)  subtracting population from real GDP.
C)  dividing real GDP by population.
D)  dividing population by real GDP.E) A) and B)
F) A) and C)

Question 5

Refer to the above diagram.Assume a nation's current production possibilities are represented by the curve AB.Positive economic growth would best be indicated by a:

Accepted Answer

A)  shift in the curve from AB to CD.
B)  shift in the curve from AB to EF.
C)  movement from point 1 to point 2.
D)  movement from point 3 to point 4.E) All of the above
F) B) and C) A

Question 6

Economic growth lessens the burden of scarcity and provides increases in domestic output which can be used to alleviate national economic problems.

Accepted Answer

A) True 
 B)False

Question 7

A decline in a nation's rate of productivity growth will:

Accepted Answer

A)  reduce the inflation rate.
B)  increase education and training.
C)  slow the growth of the standard of living.
D)  make industry more competitive in world markets.E) None of the above
F) A) and B)

Question 8

Refer to the above table.Between years 1 and 2, real GDP grew by _______ percent in Italy:

Accepted Answer

A)  3
B)  4
C)  5
D)  10E) All of the above
F) None of the above

Question 9

The achievement of full employment through time will:

Accepted Answer

A)  diminish labour productivity.
B)  reduce the level of investment as a percentage of GDP.
C)  increase the rate of growth of real GDP.
D)  have no impact on the rate of growth of real GDP.E) B) and D)
F) B) and C)

Question 10

In 1998, the average living standards in Canada were approximately how many times higher than those in Africa?

Accepted Answer

A)  15
B)  20
C)  50
D)  100E) C) and D)
F) A) and D)

Question 11

Refer to the above table, per capita GDP was about:

Accepted Answer

A)  $105 in year 3 in Italy.
B)  $303 in year 3 in China.
C)  $200 in year 1 in China
D)  $5 in year 2 in Italy.E) All of the above
F) None of the above

Question 12

In Canada, real GDP per capita has increased more rapidly than real GDP.

Accepted Answer

A) True 
 B)False

Question 13

An outward shift of a nation's production possibilities curve:

Accepted Answer

A)  ensures the nation of an increase in real GDP per capita.
B)  could increase the nation's real GDP, but not the real- GDP per capita.
C)  could reduce the nation's real GDP.
D)  corresponds to a leftward shift of the nation's long-run aggregate supply curve.E) C) and D)
F) None of the above

Question 14

Economic well-being in Canada is understated by growth rates because they:

Accepted Answer

A)  account for pollution expenditures.
B)  account for improvement in products.
C)  account for illegal activity.
D)  don't account for the added leisure of labour.E) All of the above
F) A) and C) D

Question 15

Refer to the above diagram.If the production possibilities curve of an economy shifts from AB to EF, it is most likely the result of what factor affecting economic growth?

Accepted Answer

A)  a supply factor
B)  a demand factor
C)  an efficiency factor
D)  an allocation factorE) B) and D)
F) A) and C)

Question 16

Assume that the nominal GDP of an economy was $350 billion in 2016 and $375 billion in 2017.On the basis of this information, we:

Accepted Answer

A)  cannot make a meaningful comparison of the economy's performance in 2017 relative to 2016.
B)  can conclude that the economy achieved real economic growth in 2017.
C)  can conclude that the real GDP was higher in 2016 than in 2017.
D)  can conclude that the real GDP was lower in 2016 than in 2017.E) A) and B)
F) B) and C)

Question 17

If the number of worker-hours in an economy is 100 and its labour productivity is 5 units of output per worker-hour, the economy's real GDP:

Accepted Answer

A)  is $20.
B)  is $500.
C)  is $5000.
D)  cannot be calculated.E) B) and D)
F) B) and C)

Question 18

Real GDP was $9,950 billion in Year 1 and $10,270 billion in Year 2.The population rose from 270 million in Year 1 to 275 million in Year 2.What was the approximate increase in real GDP per capita rate from Year 1 to Year 2?

Accepted Answer

A)  1.3 percent
B)  2.1 percent
C)  3.3 percent
D)  4.2 percentE) None of the above
F) A) and B)

Question 19

Refer to the above diagram.If the production possibilities curve of an economy shifts from AB to CD, it is most likely the result of what factor affecting economic growth?

Accepted Answer

A)  a supply factor
B)  a demand factor
C)  an efficiency factor
D)  an allocation factorE) A) and B)
F) A) and C)

Question 20

Which of the following is an effect of economic growth on the burden of scarcity?

Accepted Answer

A)  A decrease in the burden
B)  An increase in the burden
C)  No effect on the burden
D)  None of the answer choices are correct.E) B) and C)
F) A) and D)

Exam 8: B: Economic Growth

Real GDP was $9,950 billion in Year 1 and $10,270 billion in Year 2.What was the approximate rate of economic growth from Year 1 to Year 2?

Correct AnswerverifiedC

Suppose total output (real GDP) is $10,000 and worker-hours are 20,000.We can conclude that:

Correct AnswerverifiedShow Answer

The average living standards in Canada compared to Africa are much higher because:

Correct AnswerverifiedShow Answer

Real GDP per capita is found by:

Correct AnswerverifiedShow Answer

Refer to the above diagram.Assume a nation's current production possibilities are represented by the curve AB.Positive economic growth would best be indicated by a:

Correct AnswerverifiedA

Economic growth lessens the burden of scarcity and provides increases in domestic output which can be used to alleviate national economic problems.

Correct AnswerverifiedShow Answer

A decline in a nation's rate of productivity growth will:

Correct AnswerverifiedShow Answer

Refer to the above table.Between years 1 and 2, real GDP grew by _______ percent in Italy:

Correct AnswerverifiedShow Answer

The achievement of full employment through time will:

Correct AnswerverifiedShow Answer

In 1998, the average living standards in Canada were approximately how many times higher than those in Africa?

Correct AnswerverifiedShow Answer

Refer to the above table, per capita GDP was about:

Correct AnswerverifiedShow Answer

In Canada, real GDP per capita has increased more rapidly than real GDP.

Correct AnswerverifiedShow Answer

An outward shift of a nation's production possibilities curve:

Correct AnswerverifiedShow Answer

Economic well-being in Canada is understated by growth rates because they:

Correct AnswerverifiedD

Refer to the above diagram.If the production possibilities curve of an economy shifts from AB to EF, it is most likely the result of what factor affecting economic growth?

Correct AnswerverifiedShow Answer

Assume that the nominal GDP of an economy was $350 billion in 2016 and $375 billion in 2017.On the basis of this information, we:

Correct AnswerverifiedShow Answer

If the number of worker-hours in an economy is 100 and its labour productivity is 5 units of output per worker-hour, the economy's real GDP:

Correct AnswerverifiedShow Answer

Real GDP was $9,950 billion in Year 1 and $10,270 billion in Year 2.The population rose from 270 million in Year 1 to 275 million in Year 2.What was the approximate increase in real GDP per capita rate from Year 1 to Year 2?

Correct AnswerverifiedShow Answer

Refer to the above diagram.If the production possibilities curve of an economy shifts from AB to CD, it is most likely the result of what factor affecting economic growth?

Correct AnswerverifiedShow Answer

Which of the following is an effect of economic growth on the burden of scarcity?

Correct AnswerverifiedShow Answer

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A

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D

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