Question 1

Average income in Western Europe in 1600 was, in inflation-adjusted terms, roughly

Accepted Answer

A

Question 2

In 1820, average world income was, in inflation-adjusted terms, roughly

Accepted Answer

D

Question 3

Average world income began to increase rapidly during the

Accepted Answer

The Industrial Revolution (late 18th to mid-19th century) brought about numerous technological advancements and improvements in productivity, leading to an increase in average world income.

Question 4

An increase in the amount of household wealth in an economy would _____the average standard of living and would_____ the spending power experienced by the typical person.

Accepted Answer

An increase in household wealth would raise the average standard of living as people will have more assets to improve their quality of life. It would also improve the spending power experienced by the typical person as they will have more disposable income to spend on goods and services.

Question 5

Using 2010 U.S. dollars, in 2000 annual real per capita gross domestic product GDP) in the United States was around________ , whereas in China, it was around______ .

Accepted Answer

In 2000, the annual real per capita GDP in the United States was significantly higher than in China. The correct figures, using 2010 U.S. dollars, are approximately $44,000 for the United States and $5,200 for China.

Question 6

Using 2010 U.S. dollars, in 2000 annual real per capita gross domestic product (GDP) in Western Europe was around________ , whereas in India, it was around _______.

Accepted Answer

The question asks for real per capita GDP in 2000, which means we need to use 2010 dollars to adjust for inflation. Only option E has a plausible combination of numbers, with Western Europe having a higher GDP per capita than India. Option A is incorrect as the numbers are reversed. Option B has a ridiculously high GDP per capita for Western Europe. Option C has a higher per capita GDP for Western Europe than India, which is unlikely given the difference in economic development between the two regions. Option D has an extremely high per capita GDP for Western Europe, which is also unlikely.

Question 7

Economic growth is defined as the percent change of

Accepted Answer

The answer of Economic growth is defined as the percent...

Question 8

According to the World Bank, the 31 wealthiest countries in the world tended to have much lower rates of _____and much higher rates of _____when compared to the 40 poorest countries.

Accepted Answer

The World Bank report states that the wealthiest countries have lower rates of infant mortality (meaning fewer infants die before their first birthday) and higher rates of adult literacy (meaning more adults can read and write) compared to the poorest countries. The other options (A, B, D, and E) are not mentioned in the report as being directly related to the wealth of a country.

Question 9

Residents of poor countries tend to have fewer automobiles per capita because

Accepted Answer

Lower per capita real GDP growth rates in poor countries allow for less spending on automobiles, making them less affordable and accessible to the general population. Additionally, many poor countries lack adequate transportation infrastructure and public transportation systems, which further limits access to cars.

Question 10

According to the textbook, which of the following countries is NOT considered a "wealthy nation"?

Accepted Answer

Liberia is not considered a "wealthy nation" according to the textbook.

Question 11

Residents of wealthy countries tend to have longer life expectancies because

Accepted Answer

Higher per capita real GDP growth rates provide wealthier countries with more resources to spend on health care, which can contribute to longer life expectancies. It is not solely due to harder work, government meeting all health care needs, lower health care costs, or lack of desire to consume health care in poorer countries.

Question 12

If you earn a subsistence-level income, much of your time is spent acquiring

Accepted Answer

Subsistence-level income means that you are earning just enough to survive, so your main focus would be on acquiring basic necessities like food, clothing, and shelter. Luxury items, tax cuts, education/training, entertainment, and consumer electronics would all be lower priorities when you can barely afford to meet your basic needs.

Question 13

Residents of poor countries tend to have higher rates of infant mortality because

Accepted Answer

Lower per capita real GDP growth rates in poor countries result in less spending on health care, which contributes to higher rates of infant mortality.

Question 14

In 1800, the average income of U.S. citizens was, in inflation-adjusted terms, roughly

Accepted Answer

The answer of In 1800, the average income of U.S....

Question 15

Higher rates of real per capita gross domestic product GDP) are negatively correlated with

Accepted Answer

Higher rates of real per capita GDP are generally associated with better education, healthcare, and adult literacy, as well as a higher number of physicians per capita, all of which contribute to longer life expectancy, not shorter.

Question 16

Per capita real gross domestic product GDP) is higher in the United States than in Mexico. Based on that, we could predict the United States to have a higher rate of_____ and a lower rate of ______.

Accepted Answer

Higher per capita real GDP is often associated with better healthcare and access to technology, leading to lower infant mortality rates and higher rates of Internet users due to better infrastructure and higher incomes.

Question 17

Real per capita gross domestic product (GDP) is defined as the

Accepted Answer

Real per capita GDP is a measure of a country's economic output that accounts for its population. It is calculated by dividing the country's total GDP by its population, and adjusting for inflation to measure changes in the purchasing power of money. Therefore, it is a measure of the average level of income in a country.

Question 18

Long-run per capita world income growth was basically flat until around what year?

Accepted Answer

Long-run per capita world income growth was basically flat until around 1800 when the Industrial Revolution began to show its effects.

Question 19

Which of the following statements best describes the average standard of living for much of human history, prior to the Industrial Revolution?

Accepted Answer

Before the Industrial Revolution, economic growth and increases in living standards were very slow, resulting in average income around the world remaining relatively unchanged for centuries.

Question 20

Average world income began to rapidly rise during the Industrial Revolution because

Accepted Answer

The availability of new technologies during the Industrial Revolution allowed for increased production and efficiency, which led to economic growth and an increase in average world income. As such, the pace of technological innovation outpacing population growth is the best explanation for the rise in world income during this time period.

Quiz 11: Economic Growth and the Wealth of Nations