Question 1

Average GDP per person is
A) Also known as GDP.
B) Also known as per capita GDP.
C) The value of the factors of production used to produce output in a country.
D) A measure of the economic growth rate of a country.

Accepted Answer

Average GDP per person is also known as per capita GDP, which measures the average economic output per person in a country. A refers to GDP without the per capita measurement, C refers to the factors of production that contribute to GDP but not specifically to the average output per person, and D refers to the economic growth rate rather than the actual economic output per person.

Question 2

Those who are interested in assessing the relative standard of living of different countries over a given time period are most likely to look at
A) GDP.
B) Percentage change in GDP.
C) Population.
D) Per capita GDP.

Accepted Answer

Per capita GDP (Gross Domestic Product) measures the average income per person in a country, which is a key indicator of standard of living as it takes into account both economic growth and population size. GDP alone only measures the total output of a country's economy, which does not necessarily translate to individual income or quality of life. Percentage change in GDP is useful for analyzing economic growth but does not directly measure standard of living. Population is also important for understanding demographic trends and resource allocation but does not provide a direct measure of standard of living.

Question 3

The United States has roughly how much of the world's population?
A) 5 percent.
B) 10 percent.
C) 15 percent.
D) 20 percent.

Accepted Answer

According to the World Bank, as of 2021, the United States has approximately 4.25% of the world's population. Therefore, A) 5 percent is the closest option.

Question 4

Average living standards are best measured using
A) GDP.
B) The economic growth of the economy.
C) Per capita GDP.
D) The capital stock of the economy.

Accepted Answer

Per capita GDP measures the total output of a country divided by its population, which gives an estimate of the average living standards. It takes into account the size of the population and is a better measure than GDP or economic growth alone. The capital stock of the economy measures the physical investment in assets and infrastructure, but it does not necessarily reflect the quality of life or standard of living of the population. Therefore, it is not the best option for measuring average living standards.

Question 5

Approximately how much of the world's output does China produce?
A) 13 percent.
B) 0 percent.
C) 9 percent.
D) 1.5 percent.

Accepted Answer

China is a major global economic power and as of the latest data, it produces approximately 13 percent of the world's total output, making it the second-largest economy in the world after the United States.

Question 6

The United States has roughly how much of the world's arable land?
A) 14 percent.
B) 12 percent.
C) 10 percent.
D) 8 percent.

Accepted Answer

According to the United Nations, the United States has approximately 12 percent of the world's arable land. This is the second-highest amount of arable land of any country in the world, after India, which has roughly 24 percent.

Question 7

What percentage of the world's population subsists on incomes of less than $2 a day?
A) 33 percent.
B) 50 percent.
C) 60 percent.
D) 70 percent.

Accepted Answer

As of the latest data available up to 2023, approximately 33 percent of the world's population lives on less than $2 a day. This figure highlights the ongoing issue of extreme poverty affecting a significant portion of the global population.

Question 8

Which of the following countries (or regions) produces the most output annually?
A) Japan.
B) United States.
C) China.
D) Germany.

Accepted Answer

The answer of Which of the following countries (or regions)...

Question 9

The best definition of GDP is
A) The sum of the physical amounts of goods and services in the economy.
B)
A dollar measure of final output produced during a given time period within a nation's borders.
C) A measure of the per capita economic growth rate of the economy.
D) A physical measure of the capital stock of the economy.

Accepted Answer

GDP (Gross Domestic Product) is a dollar measure of the final goods and services produced within a country's borders during a given time period (usually a year). It is a measure of the size and growth rate of the economy, and is used as a key indicator of economic health and performance. The other options are not accurate definitions of GDP.

Question 10

Which of the following is an indicator of how much output the average person would get if all output were divided up evenly among the population?
A) GDP.
B)
Economic growth.
C) Per capita GDP.
D) Real GDP.

Accepted Answer

Per capita GDP (or GDP per capita) is a measure of economic output that takes the total GDP of a country and divides it by the population, giving an average output per person. This measure can be used to compare living standards across countries and to track changes in living standards over time within a single country. A higher per capita GDP indicates that, on average, each person in the country is better off in terms of economic output.

Question 11

Per capita GDP is
A) The sum of consumer goods, investment goods, government services, and net exports.
B) A dollar measure of the economic growth rate of a country.
C) The value of the factors of production used to produce output in a country.
D) The dollar value of GDP divided by total population.

Accepted Answer

Per capita GDP (Gross Domestic Product) is the total output of a country divided by its total population. It is a measure of the average economic well-being of individuals in a country.

Question 12

The best measure of how much output the average person would get if all output were divided evenly among the population would be
A) GDP.
B) The economic growth of the economy.
C) Per capita GDP.
D) The capital stock of the economy.

Accepted Answer

Per capita GDP is the measure of the economic output per person in a country. It is calculated by dividing the total GDP of a country by the total population. This gives an indication of the average amount of output that each person in the country would receive if all output were divided evenly. Therefore, per capita GDP is the best measure to use in this scenario.

Question 13

Approximately how much of the world's output does the United States produce?
A)5 percent.
B)17 percent.
C) 30 percent.
D) 12percent.

Accepted Answer

According to the World Bank, the United States produced approximately 17 percent of the world's GDP in 2019.

Question 14

If population growth is less than output growth for a country,
A) Real GDP has decreased.
B) Average living standards will decrease.
C) GDP must have fallen at a fairly rapid rate.
D) The per capita living standard will increase.

Accepted Answer

If population growth is less than output growth for a country, it means that the total output of goods and services (GDP) is increasing at a faster rate than the population. This would lead to an increase in the per capita GDP, which is the GDP per person. Thus, the per capita living standard will increase.

Question 15

Which of the following statements is true about the U.S.economy?
A)
The United States produces nearly one-fifth of the world's production.
B) The United States has the world's third largest economy.
C) The United States produces less than half as much as China does.
D) The United States produces less than one-third as much as Japan does.

Accepted Answer

According to the World Bank, the United States produced approximately 19.4% of the world's Gross Domestic Product (GDP) in 2020, making it the largest economy in the world. Therefore, option A is the correct statement. Option B is false as the United States has the largest economy in the world, not the third largest. Option C and D are also false as the United States produces more than both China and Japan.

Question 16

The measure of final goods and services produced in the United States is the
A) GDP of the United States.
B) Percentage change in the GDP of the United States.
C) Per capita GDP in the United States.
D) Total sales of all goods during the year.

Accepted Answer

GDP (Gross Domestic Product) is the measure of final goods and services produced within a country's borders in a given time period, usually a year. Therefore, the correct answer is A.

Question 17

Per capita GDP will rise if GDP
A) Increases more rapidly than the population increases.
B) Increases at the same rate as the population increases.
C) Decreases and the population increases.
D) Increases more slowly than the population increases.

Accepted Answer

Per capita GDP (GDP per person) is calculated by dividing GDP by the population. If GDP increases more rapidly than the population, then there is a larger economic output per person, leading to higher per capita GDP.

Question 18

Per capita GDP will definitely rise if
A) The population falls and GDP does not fall.
B) The rate of economic growth falls.
C) The rate of economic growth is less than the rate of population growth.
D) There is a decrease in the size of the working population.

Accepted Answer

Per capita GDP is calculated by dividing the total GDP by the population. Thus, if the population falls but GDP does not fall, the per capita GDP will rise since there are fewer people to divide the same amount of GDP among.

Question 19

China has roughly how much of the world's population?
A) 10 percent.
B) 20 percent.
C) 30 percent.
D) 40 percent.

Accepted Answer

According to current estimates, China has approximately 20 percent of the world's population, which is around 1.4 billion people as of 2021.

Question 20

Per capita GDP will definitely fall if
A) The population falls.
B) The rate of economic growth falls.
C) The rate of economic growth is less than the rate of population growth.
D) There is a decrease in the size of the working population

Accepted Answer

Per capita GDP is calculated by dividing the GDP by the population. If the rate of population growth is greater than the rate of economic growth, then the population is increasing faster than the economy is growing. This means that the pie is getting smaller, so to speak, and there are fewer resources per person. Therefore, per capita GDP will fall. The other choices, while potentially affecting the overall GDP, do not necessarily have a direct effect on per capita GDP.

Quiz 2: The Useconomy: a Global View

Average GDP per person is

Those who are interested in assessing the relative standard of living of different countries over a given time period are most likely to look at

The United States has roughly how much of the world's population?

Average living standards are best measured using

Approximately how much of the world's output does China produce?

The United States has roughly how much of the world's arable land?

What percentage of the world's population subsists on incomes of less than $2 a day?

Which of the following countries (or regions) produces the most output annually?

The best definition of GDP is

Which of the following is an indicator of how much output the average person would get if all output were divided up evenly among the population?

Per capita GDP is

The best measure of how much output the average person would get if all output were divided evenly among the population would be

Approximately how much of the world's output does the United States produce?

If population growth is less than output growth for a country,

Which of the following statements is true about the U.S.economy?

The measure of final goods and services produced in the United States is the

Per capita GDP will rise if GDP

Per capita GDP will definitely rise if

China has roughly how much of the world's population?

Per capita GDP will definitely fall if