Question 1

The Industrial Revolution began in

Accepted Answer

The Industrial Revolution began in England around 1750 with the development of textile machinery and the shift towards mechanization of production.

Question 2

The period of time from 1,000,000 B.C.to 1300 A.D.was a period of

Accepted Answer

This period of time is commonly referred to as the prehistoric era, and there is little historical data to support sustained economic growth during this time. Additionally, there were several periods of significant environmental change and various civilizations rising and falling, making it unlikely that there was steady or rapid economic growth.

Question 3

Some factors currently exist that inhibit the growth rate of the Chinese economy.The main reason given is

Accepted Answer

The lack of laws that predictably enforce property rights is a major factor inhibiting the growth rate of the Chinese economy, as it creates uncertainty and risk for investors and entrepreneurs. Without secure property rights, individuals and companies are less likely to invest in new businesses, technologies, and infrastructure, which could drive economic growth. The other choices do not accurately reflect the current state of the Chinese economy, as free-market reforms and entrepreneurship have already been introduced and the government does intervene in the marketplace to some extent.

Question 4

Increasing the growth rate of GDP per capita and sustaining this growth rate in an economy can

Accepted Answer

Increasing the growth rate of GDP per capita and sustaining this growth rate in an economy can increase the standards of living. As the economy grows, people tend to have better job opportunities, higher incomes, and improved access to goods and services, which can lead to an overall improvement in the quality of life. However, this growth may not be equitable, and some individuals or groups may not see the benefits of economic growth, leading to potential increases in poverty. Additionally, other factors beyond GDP per capita, such as healthcare, education, and environmental protection, can also impact overall standards of living.

Question 5

If real GDP per capita in Ireland is estimated to be $7,400 in 2012,what will real GDP per capita be in 2017 if real GDP per capita grows at an annual rate of 2.8%?

Accepted Answer

To calculate the real GDP per capita in 2017, we need to use the formula:

Real GDP per capita in 2017 = Real GDP per capita in 2012 x (1 + annual growth rate)^(number of years)

Plugging in the given numbers, we get:

Real GDP per capita in 2017 = $7,400 x (1 + 0.028)^5

Real GDP per capita in 2017 = $7,400 x 1.148

Real GDP per capita in 2017 = $8,496

Therefore, the best answer is B) $8,496.

Question 6

If real GDP per capita in the United States is $8,000 in 2011,and if real GDP per capita is $12,000 in 2021,what is the average annual percent change in the growth rate of GDP per capita between 2011 and 2021?

Accepted Answer

To calculate the average annual percent change in the growth rate of GDP per capita between 2011 and 2021, we can use the formula:
[(Ending value / Beginning value)^(1/number of years)] - 1

Plugging in the values, we get:
[(12,000 / 8,000)^(1/10)] - 1
= 1.05 - 1
= 0.05 or 5%

Therefore, the average annual percent change in the growth rate of GDP per capita between 2011 and 2021 is 5%. Hence, the best choice is B).

Question 7

If real GDP per capita in the United States is $8,000 in 2011,and if real GDP per capita is $12,000 in 2021,what is the total percent change in the growth rate of GDP per capita between 2011 and 2021?

Accepted Answer

The total percent change in GDP per capita is calculated as ((12,000 - 8,000) / 8,000) * 100 = 50%.

Question 8

If real GDP per capita in the United States is $8,000,what will real GDP per capita in the United States be after 5 years if real GDP per capita grows at an annual rate of 3.2%?

Accepted Answer

Using the formula for compound interest: 
\begin{align*}
	ext{Future GDP per capita} &= 	ext{Initial GDP per capita} 	imes (1 + 	ext{annual growth rate})^	ext{number of years}\
&= 8000 	imes (1 + 0.032)^5\
&= 8000 	imes 1.166 = 9368
\end{align*}
Rounding to the nearest dollar gives the answer of $9,365, which is closest to option C.

Question 9

According to Douglass North,the Industrial Revolution occurred in England because

Accepted Answer

According to Douglass North's theory of institutional change, the key factor behind the Industrial Revolution was the establishment of secure property rights. In England, this was made possible by the Glorious Revolution of 1688, which transferred power from the monarch to Parliament and led to the creation of a system of checks and balances that limited the arbitrary exercise of government power. This allowed individuals and businesses to invest in new technologies and innovations with confidence that they would reap the benefits of their efforts.

Question 10

Suppose that in 2011 real GDP grew in Estonia by 3% and that the population increased by 5%.Therefore in 2011,Estonia experienced

Accepted Answer

Economic growth is measured by an increase in real GDP. In this case, Estonia experienced economic growth of 3%. However, an increase in population means that the same amount of goods and services have to be shared among more people, which could lead to a decrease in living standards. Therefore, while there was economic growth, there may not have been an increase in living standards for the average Estonian citizen.

Question 11

China's economy has grown tremendously from 1979 to the present.The reason the article gives for this growth is

Accepted Answer

The article specifically mentions "market-oriented reforms in 1978" as the reason for China's economic growth, not the centrally planned economy or lack of governmental intervention. There is no mention of MySpace being a factor in China's economic growth.

Question 12

Growth in real GDP per capita for the world economy was greatest during

Accepted Answer

The twentieth century saw the greatest growth in real GDP per capita for the world economy due to various factors such as technological advances, increased globalization, and improved economic policies. The growth was particularly significant in the latter half of the century, with many countries experiencing rapid economic development and rising living standards.

Question 13

An economy that grows too slowly fails to raise living standards.

Accepted Answer

A slow-growing economy means that there is less money circulating in the economy, and fewer job opportunities. This leads to lower wages, high unemployment, and a decreased standard of living for citizens. On the other hand, a growing economy creates more jobs, higher wages, and an overall improvement in living standards.

Question 14

Small differences in economic growth rates result in small differences in living standards.

Accepted Answer

The answer of Small differences in economic growth rates result...

Question 15

Most of the countries of Africa are considered newly industrializing countries.

Accepted Answer

Most of the countries in Africa are still considered developing or least developed countries, with limited industrialization and many challenges to overcome in order to achieve sustainable economic growth. While there are some countries in Africa that are making progress towards industrialization, such as South Africa, Egypt, and Morocco, they are still in the minority.

Question 16

Significant economic growth did not begin in the world until

Accepted Answer

Significant economic growth on a global scale is widely recognized to have begun around 1750 A.D., coinciding with the onset of the Industrial Revolution. This period marked a dramatic increase in the rate of economic growth due to technological innovations, increased productivity, and the expansion of global trade networks.

Question 17

The rapid growth of the Chinese economy should

Accepted Answer

The rapid growth of the Chinese economy has led to an increase in the production of less expensive consumer goods, which benefit U.S. consumers.

Question 18

If real GDP in the United States is growing at an annual rate of 3.2% per capita and Bolivia's real GDP per capita is growing at a rate of 1.3%,which of the following would we expect in the long run? Assume real GDP per capita in the United States begins at a level above that of real GDP per capita in Bolivia.

Accepted Answer

The answer of If real GDP in the United States...

Question 19

What features made England in the eighteenth century the place where the Industrial Revolution occurred?

Accepted Answer

The answer of What features made England in the eighteenth...

Question 20

Between 1960 and 2010,deaths among children have

Accepted Answer

According to the information given, deaths among children have declined in nearly all countries including most low-income countries.

Quiz 11: Long-Run Economic Growth: Sources and Policies