Deck 3: An Overview of Long-Run Economic Growth

Question 1

What country or countries do the following characteristics possibly describe?
• Life expectancy at birth is under 50 years.
• More than 90 percent of households do not have electricity.
• Fewer than 10 percent of young adults have graduated from high school.

A) Kenya
B) the United States in the late 1800s
C) Bangladesh
D) Russia
E) All of these answers are correct.

Answer 1

B

Question 2

Until about 12,000 years ago, humans were ________; at that point ________ led to the first towns and true economic development.

A) farmers; the Bronze Age
B) hunters and gatherers; the Iron Age
C) hunters and gatherers; agriculture
D) hunters and gatherers; universities
E) farmers; industry

Answer 2

C

Question 3

If per capita GDP in 2014 was $1,000 and in 2015 was $1,200, the growth rate of per capita GDP was:

A) 1.2 percent
B) about 17 percent
C) 20 percent
D) 120 percent
E) Not enough information is given.

Answer 3

C

Question 4

The study of economic growth concentrates on understanding the determinants of:

A) the rate of price changes
B) the short-term change in per capita GDP
C) the rate of population growth
D) the change in per capita GDP over time
E) None of these answers are correct.

Question 5

Developed countries' average incomes rose from about ________ in 1700 to about ________ today.

A) $1,000; $30,000
B) $2,500; $50,000
C) $500; $70,000
D) $500; $45,000
E) $500; $100,000

Question 6

Economic growth is defined as:

A) the percent change in per capita income, or GDP
B) the percent change in prices, or GDP
C) the decline in the unemployment rate
D) the difference between the nominal and real GDP
E) changes in technology

Question 7

According to historical data, the wages in ancient Greece and Rome were ________ in sixteenth-century Britain or eighteenth-century France.

A) somewhat lower than
B) a lot higher than
C) a lot lower than
D) about the same as
E) None of these answers are correct.

Question 8

According to the constant growth rate rule, if a variable starts at some initial value y₀ at t = 0 and grows at $y _ { t } = y _ { 0 } ( 1 + \bar { g } ) ^ { t }$ at a constant rate $\bar { g } ,$
Then the value of the variable in three periods is given by:

A) $y _ { 3 } = y _ { 0 } ( 1 - \bar { g } ) ^ { 3 }$
B) $y _ { t } = y _ { 0 } ( 1 + \bar { g } ) ^ { t }$
C) $y _ { 3 } = y _ { 0 } ( 1 + \bar { g } ) ^ { 3 }$
D) $y _ { 3 } = y _ { 0 } ( 1 + 3 \bar { g } )$
E) $y _ { 3 } = 3 y _ { 0 } ( 1 - \bar { g } )$

Question 9

The rule of 70 states that:

A) if y_t grows at a rate of g percent per year, then the number of years it takes y_t to double is approximately equal to 70/g
B) if y_t grows at a rate of g percent per year, then the number of years it takes y_t to double is exactly equal to 70/g
C) if y_t grows at a rate of g percent per year, then the number of years it takes y_t to double is approximately equal to g/70
D) if y_t grows at a rate of g percent per year, then the number of years it takes y_t to triple is approximately equal to 70/g
E) if y_t grows at a rate of g percent per year, then the number of years it takes y_t to double is approximately equal to 70/(1 + g)

Question 10

Economic growth can be useful in describing why:

A) Europeans are better off in 2007 than they were in 1907 and why Europeans are better off than Thais
B) Europeans are better off in 2007 than they were in 1907 and why Europeans are worse off than Thais
C) Europeans are better off in 2007 than they were in 1907
D) Europeans are worse off than Thais
E) Europeans are worse off in 2007 than they were in 1907 and why Europeans are better off than Thais

Question 11

English philosopher Thomas Hobbes is notable for observing that life was ________ for thousands of years.

A) nasty, brutish, and short
B) just like the legend of King Arthur
C) great, if you were a king
D) halcyon, fulsome, but short
E) comfortable and prosperous

Question 12

Defining per capita GDP in 2013 as y₂₀₁₃ and per capita GDP in 2014 as y₂₀₁₄, the growth rate of per capita GDP, $\bar { g }$ , from 2013 to 2014 is given by:

A) $\bar { g } = \bar { y } _ { 2014 } - \bar { y } _ { 2013 }$
B) $\bar { g } = \left( \bar { y } _ { 2014 } + \bar { y } _ { 2013 } \right) / \bar { y } _ { 2013 }$
C) $\left( \bar { y } _ { 2014 } \times \bar { y } _ { 2013 } \right) / \bar { y } _ { 2013 }$
D) $\left( \bar { y } _ { 2014 } - \bar { y } _ { 2013 } \right) / \bar { y } _ { 2013 }$
E) $\left( \bar { y } _ { 2014 } - \bar { y } _ { 2013 } \right) / \bar { y } _ { 2014 }$

Question 13

If per capita GDP in 2013 was $900, in 2014 was $1,000, and in 2015 was $1,200, the growth rate of per capita GDP between 2013 and 2015 was:

A) 25 percent
B) about 11 percent
C) 20 percent
D) about 133 percent
E) about 33 percent

Question 14

The birthplace of modern economic growth was in ________ during the ________ century.

A) Japan; mid-twentieth
B) the United States; mid-nineteenth
C) the United Kingdom; mid-eighteenth
D) China; late twentieth
E) Germany; early nineteenth

Question 15

Assuming the current rate of economic growth continues, the average college student will have a lifetime income ________ that of his or her parents.

A) five times
B) ten times
C) about the same as
D) about twice
E) half

Question 16

In 2005, prices adjusted for inflation; the U.S. per capita GDP was about ________ in 1870, and by 2012 it had grown to about ________.

A) $500; $37,000
B) $2,800; $43,000
C) $500; $17,000
D) $10,000; $37,000
E) $100; $100,000

Question 17

Assuming the current rate of economic growth continues, the average parent of a college student will have a lifetime income ________ that of his or her son or daughter.

A) ten times
B) half
C) about the same as
D) five times
E) about twice

Question 18

The growth rate of any variable y between periods t and t + 1 is the ________ and is given by the term ________.

A) percentage of that variable; $y _ { t + 1 } / y _ { t }$
B) percent change in that variable; $\left( y _ { t + 1 } - y _ { t } \right) / y _ { t }$
C) percent change in that variable; $y _ { t + 1 } - y _ { t }$
D) percent of that variable; $\left( y _ { t + 1 } - y _ { t } \right) / y _ { t }$
E) percent change in that variable; $\left( y _ { t + 1 } - y _ { t } \right) / y _ { t + 1 }$

Question 19

The era of modern economic growth began about:

A) the time of the Egyptian pharaohs
B) 500 years ago
C) the time of Caesar
D) the time of the Renaissance
E) 300 years ago

Question 20

If the 130,000-year period since anatomically modern humans made their first appearance were compressed into a single day, economic growth would have begun in the last ________.

A) three hours
B) hour
C) three minutes
D) half hour
E) two hours

Question 21

Between 1970 and 1976, Israel's average inflation rate was about 65 percent per year. With that rate of inflation, prices would double about every ________ using the rule of 70.

A) 93 years
B) 107.7 years
C) 0.95 years
D) 1.1 years
E) 9.3 years

Question 22

Suppose that in 1950 Japan has an initial per capita GDP of $15,000 per year and China has a per capita GDP of $2,500. But China is growing at 7 percent per year and Japan is growing at 2 percent per year. In 2010, ________ is the lower-income country, with a per capita GDP of approximately ________.

A) China; $2,500
B) Japan; $15,000
C) Japan; $50,000
D) China; $46,000
E) Japan; $105,000

Question 23

Suppose that in 1960 Japan had an initial per capita GDP of $12,000 per year and China had a per capita GDP of $5,000. But China is growing at 5 percent per year and Japan is growing at 3 percent per year. ________ is richer in 2010 with a per capita GDP of approximately ________.

A) Japan; $5,000
B) Japan; $31,500
C) China; $7,500
D) China; $73,500
E) Not enough information is given.

Question 24

The president of the World Bank has asked you to calculate the average population growth rate of Hungary from 1970 to 2010. You know the population in 1970 was about 10.4 million and in 2010 about 9.5 million. The average growth rate is about:

A) 0.2 percent
B) -0.2 percent
C) 98.4 percent
D) 2.7 percent
E) -200 percent

Question 25

The compression of the vertical axis at "key doubling points" is called:

A) the quadratic scale
B) the logarithmic scale
C) the exponential scale
D) the ratio scale
E) the geometric scale

Question 26

Suppose population growth is given by $L _ { t } = L _ { 0 } ( 1 + \bar { n } ) ^ { t }$ , where L₀ is the population today, $L _ { t }$
Is the population in t periods, and $\bar { n }$
Is the population constant growth rate. If we do not know what value $\bar { n }$
Takes but do know the values of L₀, $L _ { t }$
, and t, we can calculate $\bar { n }$
By punching ________ into our calculator.

A) $\bar { n } = \left( \frac { L _ { t } } { L _ { 0 } } \right) ^ { 1 / t }$
B) $\bar { m } = \left( \frac { L _ { t } - 1 } { L _ { 0 } } \right) ^ { 1 / t }$
C) $\bar { n } = \left( \frac { L _ { t } } { L _ { 0 } } \right) ^ { 1 / t } - 1$
D) $\bar { n } = \left( \frac { L _ { t } } { L _ { 0 } } \right) ^ { t } - 1$
E) $\bar { n } = L _ { t } ^ { 1 / t } - 1$

Question 27

Between 1986 and 2010, China's per capita GDP grew an average of ________ percent.

A) 4.4
B) 8
C) 3.7
D) 7
E) 6

Question 28

Suppose there are L₀ people in the world today. If the population growth rate equals $\bar { n }$ , then in 50 years, the world population will be:

A) $L _ { 50 } = L _ { 0 } \bar { n } ^ { 50 }$
B) $L _ { 50 } = L _ { 0 } ( 1 + \bar { n } ) ^ { 50 }$
C) $L _ { 50 } = L _ { 0 } \Sigma _ { T = 0 } ^ { 50 } ( 1 + \bar { n } ) ^ { t }$
D) $L _ { _ { 50 } } = L _ { 0 } ( 1 + \bar { n } ) \times 50$
E) $L _ { _ { 50 } } = L _ { 0 } ( 1 + \bar { n } ) \div 50$

Question 29

If the population of Romania was about 20.3 million in 1970 and the average population growth rate is 0.2 percent, then Romania's population would have been about ________ in 2010.

A) 20.3 million
B) 22.0 million
C) 40.6 million
D) 17.4 million
E) 23.6 million

Question 30

In the late nineteenth century, ________ was the richest country in the world, but it now lags behind the United States because of ________.

A) China; a lower rate of inflation
B) the United Kingdom; a lower economic growth rate
C) Germany; a higher economic growth rate
D) Japan; consistently being at war
E) China; a higher economic growth rate

Question 31

If the population of Romania was about 22 million in 2010 and the average population growth rate is 0.2 percent, then Romania's "initial" population was about ________ in 1970.

A) 23.9 million
B) 18.9 million
C) 20.3 million
D) 22.0 million
E) 23.8 million

Question 32

If we compress the vertical axis at "key doubling points," we call this:

A) the logarithmic scale
B) the ratio scale
C) the exponential scale
D) the quadratic scale
E) the geometric scale

Question 33

If instead of labeling the vertical axis in the usual "1, 2, 3, 4, . . ." fashion we label it as "1, 2, 4, 8, . . ." so that equal intervals represent a doubling, we call this:

A) the quadratic scale
B) the logarithmic scale
C) the exponential scale
D) the ratio scale
E) the geometric scale

Question 34

Since approximately 1950, ________ has been one of the fastest growing economies.

A) Germany
B) the United Kingdom
C) China
D) the United States
E) Mexico

Question 35

Of the industrialized countries in 2010, ________ had the highest per capita GDP, and in 1950, ________ had the lowest per capita GDP.

A) Japan; the United Kingdom
B) the United States; China
C) Germany; Germany
D) the United Kingdom; Germany
E) the United Kingdom; the United States

Question 36

According to the rule of 70, if an economy averages a 4 percent growth rate, it will take about ________ years to double in size.

A) 2.8
B) 1,750
C) 0.06
D) 5.7
E) 17.5

Question 37

Over the past 50 years, Brazil's population growth rate has averaged about 2.3 percent. According to the rule of 70, Brazil's population will double in about:

A) 3 years
B) 30 years
C) 33 years
D) 161 years
E) 1.6 years

Question 38

The president of the World Bank has asked you to calculate the average per capita GDP growth rate of Rwanda from 1980 to 2010. In 1980, per capita GDP was about $728 and in 2010 about $1,025. You tell him the average growth rate of per capita GDP is about:

A) 1.1 percent
B) -1.1 percent
C) 0.0 percent
D) -2.3 percent
E) 20.2 percent

Question 39

The president of the World Bank has asked you to calculate the average population growth rate of Nigeria from 1960 to 2010. You know the population in 1960 was about 42 million and in 2010 about 152 million. The average growth rate is about:

A) 16.4 percent
B) 0.9 percent
C) 0.0 percent
D) -4.1 percent
E) 2.6 percent

Question 40

The president of the World Bank is on his way to a meeting with the president of Uruguay. He bumps into you in the hallway and wants to know how long it will take for Uruguayan per capita GDP to double. All he knows is that the average growth rate has been about 1 percent. You quickly tell him it will take about ________ years because you know ________.

A) 60; the rule of 60
B) 7; the rule of 70
C) 700; percent change
D) 70; the rule of 70
E) 1; exponential growth

Question 41

In 2010, approximate ________ of the world's population lived on $5 a day or less.

A) one-twelfth
B) two-thirds
C) 10 percent
D) one-third
E) 12 percent

Question 42

Suppose k, l, and m grow at constant rates given by $\bar { g } _ { k }$ And $\bar { g } _ { m }$
What is the growth rate of y if $y = m k ^ { 1 / 3 } l ^ { 2 / 3 } ?$

A) $g _ { y } = \bar { g } _ { m } + \bar { g } _ { k } + \bar { g } _ { t }$
B) $g _ { y } = \bar { g } _ { m } \times ( 1 / 3 ) \bar { g } _ { k } \times ( 2 / 3 ) \bar { g } _ { l }$
C) $g _ { y } = \bar { g } _ { m } + ( 1 / 3 ) \left( \bar { g } _ { k } + \bar { g } _ { t } \right)$
D) $g _ { y } = \bar { g } _ { m } + ( 1 / 3 ) \bar { g } _ { k } + ( 2 / 3 ) \bar { g } _ { t }$
E) $g _ { y } = \bar { g } _ { m } + \bar { g } _ { \ell } 1 / 3 + \bar { g } _ { t } 2 / 3$

Question 43

Suppose x grows at a rate $\bar { g } _ { x } = 3$ percent and y grows at a rate $\bar { g } _ { y } = 3$
Percent. If z = x $\times$ y, then z grows at ________; if z = x/y, z grows at ________.

A) 0 percent; 6 percent
B) 6 percent; 0 percent
C) 6 percent; 12 percent
D) -6 percent; 6 percent
E) 1 percent; 0 percent

Question 44

Suppose k and l grow at constant rates given by $\bar { g } _ { k }$ and $\bar { g } _ { l }$ '
What is the growth rate of y if $y = k ^ { a } / l ^ { ( 1 - a ) } , a > 0 ?$

A) $g _ { y } = \bar { g } _ { k } ^ { a } + g _ { l } ( 1 - a )$
B) $g _ { y } = a \left( \bar { g } _ { k } + \bar { g } _ { l } \right)$
C) $g _ { y } = a \bar { g } _ { \ell } + ( 1 - a ) \bar { g } _ { l }$
D) $g _ { y } = a \bar { g } _ { \ell } - ( 1 - a ) \bar { g } _ { l }$
E) $g _ { y } = a \bar { g } _ { k } / ( 1 - a ) \bar { g } _ { l }$

Question 45

When a lower-income economy's GDP is able to "catch up" with a higher-income economy's GDP, this behavior is related to an important concept in the study of economic:

A) growth
B) divergence
C) convergence
D) fluctuations
E) asset markets

Question 46

If France's per capita GDP is $5,000 in 1950 and Portugal's is $2,500, but Portugal is growing faster, the expectation that sometime in the future Portugal's per capita GDP will equal that of France is called economic:

A) growth
B) divergence
C) convergence
D) dynamics
E) justice

Question 47

Suppose k₀ = 100 and assume it grows at a constant rate $\bar { g } _ { X } = 2$ percent per year. If $y _ { t } = k _ { t } ^ { 1 / 3 } ,$
What is the approximate value of y in 50 years?

A) $y _ { 50 } = 269$
B) $y _ { 50 } = 6.45$
C) $y _ { 50 } = 5.38$
D) $y _ { 50 } = 1.11$
E) Not enough information is given.

Question 48

Suppose k, l, and m grow at constant rates given by $\bar { g } _ { k }$ And $\bar { g } _ { m }$
What is the growth rate of y if $y = ( m k l ) ^ { 1 / 3 } ?$

A) $g _ { y } = ( 1 / 3 ) \bar { g } _ { m } + ( 1 / 3 ) \bar { g } _ { k } + ( 1 / 3 ) \bar { g } _ { l }$
B) $\bar { g } _ { y } = \frac { 1 } { 3 \left( \bar { g } _ { m } - \bar { g } _ { k } - \bar { g } _ { l } \right) }$
C) $\bar { g } _ { y } = 3 \left( \bar { g } _ { m } + \bar { g } _ { k } + \bar { g } _ { l } \right)$
D) $\bar { g } _ { y } = \left( \bar { g } _ { m } ^ { \frac { 1 } { 3 } } + g _ { k } ^ { \frac { 1 } { 3 } } + g _ { l } ^ { \frac { 1 } { 3 } } \right)$
E) $\bar { g } _ { y } = \frac { 2 } { 3 \left( \bar { g } _ { m } + \bar { g } _ { k } - \bar { g } _ { l } \right) }$

Question 49

Between 1960 and 2000, which of the following countries was among the fastest growing?

A) Niger
B) Nicaragua
C) Madagascar
D) Venezuela
E) None of these answers are correct.

Question 50

In 1960, approximately ________ of the world's population lived on less than $5 per day, and the rate has ________ steadily since.

A) 10 percent; fallen
B) two-thirds; fallen
C) 10 percent; risen
D) one-third; fallen
E) two-thirds; risen

Question 51

Suppose x grows at a rate $\bar { g } _ { z } = 5$ percent and y grows at a rate $\bar { g } _ { y } = 12$
Percent. If z = y $\times$ x, then z grows at ________; if z = x/y, z grows at ________.

A) 7 percent; -17 percent
B) -17 percent; 7 percent
C) 17 percent; -7 percent
D) 60 percent; 42 percent
E) 60 percent; -42 percent

Question 52

Between 1960 and 2010, the fraction of the world's population that lived on $5 a day or less ________. This can be attributed to, in part, ________.

A) fell; a shrinking global population
B) stayed about the same; global warming
C) fell; economic growth in China and India
D) rose; rising oil prices
E) rose; the financial crisis

Question 53

Suppose k, l, and A grow at constant rates given by $\bar { g } _ { k }$ $\bar { g } _ {y }$
And $\bar { g } _ { A }$
)What is the growth rate of y if $y = A k ^ { \alpha } l ^ { 1 - \alpha } , \alpha > 0 ?$

A) $\bar { g } _ { y } = \bar { g } _ { A } + \alpha \bar { g } _ { k } - \alpha \bar { g } _ { l }$ .
B) $\bar { g } _ { y } = \bar { g } _ { A } + \alpha \left( \bar { g } _ { k } - \bar { g } _ { l } \right)$
C) $\bar { g } _ { y } = \bar { g } _ { A } + \alpha \bar { g } _ { k } - \alpha \bar { g } _ { l }$
D) $\bar { g } _ { y } = \bar { g } _ { A } + \bar { g } _ { k } ^ { \alpha } + \bar { g } _ { L } ^ { 1 - \alpha }$
E) $\bar { g } _ { y } = \bar { g } _ { A } + \alpha \bar { g } _ { X } + ( 1 - \alpha ) \bar { g } _ { Z }$

Question 54

Suppose k, l, and A grow at constant rates given by $\bar { g } _ { k }$ $\bar { g } _ { y }$ ,
And $\bar { g } _ { A }$ `
What is the growth rate of y if $y = A k ^ { a } l ^ { 1 - a } , a > 0 ?$

A) $g _ { y } = \bar { g } _ { A } + a \left( \bar { g } _ { k } + \bar { g } _ { t } \right)$
B) $g _ { y } = \bar { g } _ { A } + a \bar { g } _ { k } + ( 1 - a ) \bar { g } _ { l }$
C) $g _ { y } = a \bar { g } _ { A } + a \bar { g } _ { k } + a \bar { g } _ { l }$
D) $g _ { y } = \bar { g } _ { A } + \bar { g } _ { l } ^ { a } + \bar { g } _ { l } ^ { ( 1 - a ) }$
E) $g _ { y } = \bar { g } _ { A } \times a \bar { g } _ { k } \times ( 1 - a ) \bar { g } _ { l }$

Question 55

In 1960, approximately ________ of the world's population lived on less than $5 per day; by 2000, it ________ to ________ of the population.

A) 10 percent; rose; over one-third
B) 10 percent; rose; over two-thirds
C) two-thirds; fell; less than 10 percent
D) one-third; fell; less than 1 percent
E) one-third; rose; over two-thirds

Question 56

Suppose k, l, and A grow at constant rates given by $\bar { g } _ { k }$ $\bar { g } _ {y}$
And $\bar { g } _ { A }$ '
What is the growth rate of y if $y = A k ^ { \beta } l ^ { 1 - \beta } , \beta > 0 ?$

A) $g _ { y } = \bar { g } _ { A } + \bar { g } _ { k } ^ { \beta } + \bar { g } _ { l } ^ { 1 - \beta }$
B) $g _ { y } = \bar { g } _ { A } + \beta \left( \bar { g } _ { k } + \bar { g } _ { l } \right)$
C) $g _ { y } = \beta \bar { g } _ { A } + \beta \bar { g } _ { \ell } + \beta \bar { g } _ { l }$
D) $g _ { y } = \bar { g } _ { A } + \beta \bar { g } _ { k } + ( 1 - \beta ) \bar { g } _ { l }$
E) $g _ { y } = \bar { g } _ { A } \times \beta \bar { g } _ { k } \times ( 1 - \beta ) \bar { g } _ { l }$

Question 57

In 2010, which of the following had a per capita GDP higher than the United States?

A) the United Kingdom
B) Belgium
C) Singapore
D) Japan
E) Greece

Question 58

Which of the following had a negative growth rate over the past 50 years?

A) Tanzania
B) Ethiopia
C) Burundi
D) Democratic Republic of Congo
E) All of these answers are correct.

Question 59

Suppose K and L grow at constant rates given by $\bar { g } _ { k }$ and $\bar { g } _ { L }$ '
What is the growth rate of y if $y = \frac { k ^ { e } } { l ^ { e } }$ ?

A) $g _ { y } = a \bar { g } _ { X } + a \bar { g } _ { L }$
B) $g _ { y } = a \left( \bar { g } _ { X } + \bar { g } _ { L } \right)$
C) $\bar { g } _ { y } = a \left( \frac { \bar { g } _ { X } } { \bar { g } _ { L } } \right)$
D) $a \left( \bar { g } _ { X } - \bar { g } _ { L } \right)$
E) $\bar { g } _ { y } = a \bar { g } _ { L } + ( 1 - a ) \bar { g } _ { L }$

Question 60

Between 1960 and 2000, which of the following countries was among the slowest growing?

A) South Korea
B) Ireland
C) Thailand
D) Hong Kong
E) Uganda

Question 61

The costs of economic growth include which of the following?

A) pollution and the depletion of natural resources
B) global cooling
C) the gradual release of individuals from physical labor
D) increased productivity
E) longer lifespans

Question 62

The "birthplace" of modern economic growth was the mid-nineteenth-century United States.

Question 63

Economic growth is defined as the percent change in per capita income or GDP.

Question 64

One of the nice properties of the rule of 70 is that it simply approximates how long it takes for a variable to double independent of the level of the variable.

Question 65

In dynamic economies, it is true that economic growth may contribute to ________, but it also leads to ________.

A) unemployment; inflation
B) job creation; job destruction
C) job destruction; job creation
D) crime; unemployment
E) pollution; price instability

Question 66

The relationship between pollution and per capita GDP is documented as:

A) U shaped
B) an inverse U
C) positively related
D) nonexistent
E) negatively related

Question 67

The costs of economic growth include which of the following?

A) pollution and the depletion of natural resources
B) global warming
C) increased income inequality
D) technological advances, which may lead to the loss of specific jobs and industries
E) All of these answers are correct.

Question 68

Which of the following is/are the benefit(s) of economic growth?

A) increases in life expectancy
B) reductions in infant mortality
C) higher incomes
D) an expansion in the range of goods and services available
E) All of these answers are correct.

Question 69

Assume that Mexico's average annual per capita GDP growth rate is 3 percent per year, while Argentina's is 2.5 percent. Next, assume that both countries began with an initial per capita GDP of $1,000 in 1960. By 2010, per capita GDP would have been ________ in Mexico and ________ in Argentina.

A) $228; $291
B) $3,437; $4,384
C) $4,515; $3,523
D) $4,384; $3,437
E) Not enough information is given.

Question 70

Assume that both Japan's and the United States' average annual per capita GDP growth rates are 2 percent per year, and both countries began with an initial per capita GDP of $1,000. However, the United States has been growing since 1910 and Japan only since 1960. In 2010, the United States would have been ________ than Japan.

A) 0.37 times poorer
B) 99 times richer
C) 2.69 times richer
D) 4,555 times richer
E) 0.269 times poorer

Question 71

Suppose k grows at a rate $\bar { g } _ { k } = 6$ percent and l grows at a rate $\bar { g } _ { i} = 9$
Percent. If $y = k ^ { \frac { 1 } { 3 } } l ^ { - \frac { 4 } { 3 } }$ ,
Then y grows at:

A) -6 percent
B) 5 percent
C) 6 percent
D) -10 percent
E) 12 percent

Question 72

If the 130,000-year period since anatomically modern humans made their first appearance were compressed into a single day, economic growth would have begun in the last three minutes.

Question 73

Suppose k grows at a rate $\bar { g } _ { k } = 3$ percent and l grows at a rate $\bar { g } _ {i } = 9$
Percent. If $y = k ^ { 1 / 3 } l ^ { 2 / 3 }$
Then y grows at:

A) 6 percent
B) 5 percent
C) 7 percent
D) -6 percent
E) 12 percent

Question 74

Suppose there are L₀ people in the world today. If the population growth rate equals $\bar { n }$ ,
then in 50 years, the world population will be $L _ { 50 } = L _ { 0 } \Sigma _ { t - 0 } ^ { 50 } ( 1 + \bar { n } ) ^ { t }$ .

Question 75

Suppose k grows at a rate $\bar { g } _ { k } = 3$ percent and l grows at a rate $\bar { g } _ { i } = 9$
Percent. If $y = k ^ { 1 / 3 } l ^ { 1 / 3 }$ ,
Then y grows at:

A) 3 percent
B) 4 percent
C) -3 percent
D) 12 percent
E) -4 percent

Question 76

Which of the following is/are the benefit(s) of economic growth?

A) an expansion in the range of goods and services available
B) shorter expected lifespans
C) more pollution
D) lower government deficits
E) lower productivity

Question 77

Suppose k grows at a rate $\bar { g } _ { k } = 3$ percent and l grows at a rate $\bar { g } _ { l } = 12$
Percent. If $y = k ^ { 1 / 3 } l ^ { 2 / 3 }$ ,
Then y grows at:

A) 5 percent
B) 15 percent
C) 9 percent
D) 4 percent
E) 3 percent

Question 78

Assume that both Mexico's and Argentina's average annual per capita GDP growth rates are 3 percent per year, and both countries began with an initial per capita GDP of $1,000. However, Argentina has been growing since 1935 and Mexico only since 1960. In 2010, Mexico's per capita GDP would have been about ________, while Argentina's would have been about ________.

A) $19.42; $12.94
B) $9,179; $4,384
C) $51,500; $77,250
D) $48,544; $72,816
E) $4,384; $9,179

Question 79

Despite the costs associated with economic growth, most believe:

A) they will get only higher
B) there are not too many benefits
C) they are higher than the benefits
D) the benefits far outweigh the costs
E) the benefits are negative

Question 80

According to historical data, wages in ancient Greece and Rome were about the same as wages in fifteenth-century Britain.