Question 1

The right to openly support and democratically select national leaders is

Accepted Answer

The right to openly support and democratically select national leaders falls under political freedom, which is the freedom of individuals to participate in political activities such as voting, holding public office, and expressing political opinions without fear of retribution or persecution.

Question 2

Which of the following equations is correct?

Accepted Answer

The equation given in option A is correct. The rate of growth of per capita real GDP is calculated by subtracting the rate of growth of population from the rate of growth in real GDP. This is because per capita real GDP is the real GDP per person, and the rate of growth of population decreases the amount of real GDP available per person.

Question 3

Economic growth is measured by

Accepted Answer

Economic growth is measured by the annual percentage change in per capita real GDP. This accounts for both inflation and population growth, making it a more accurate measure of the increase in economic output per person over time. Options A and C only measure nominal GDP, which does not account for inflation, while option B measures unemployment, which is a separate economic indicator.

Question 4

If the average annual growth rate in real GDP for a nation during the last decade was 4 percent per year and the average annual population growth rate was 2 percent per year during the same period, then the average annual growth rate of per capita GDP was

Accepted Answer

The average annual growth rate of per capita GDP can be calculated by subtracting the population growth rate from the GDP growth rate. Therefore, 4 percent (GDP growth) - 2 percent (population growth) = 2 percent.

Question 5

A higher population growth rate can potentially lead to a higher rate of growth in per capita real GDP if

Accepted Answer

A higher population growth rate can lead to a higher rate of growth in per capita real GDP if it results in a greater labor force participation rate, as more people working can increase overall economic output.

Question 6

According to the text, a country with a considerable amount of economic freedom will experience

Accepted Answer

The text states that countries with more economic freedom have positive rates of per capita income growth. Therefore, option A is correct. Options B, C, and D are incorrect as they are not supported by the information given in the text.

Question 7

Economic freedom by its nature suggests

Accepted Answer

Economic freedom is generally associated with free markets, which are characterized by minimal government intervention. This allows individuals and businesses to make their own economic decisions, trade freely, and pursue their own self-interest. A lack of laws and regulations or economic anarchy would not be consistent with economic freedom, as some level of rule of law is necessary to protect property rights and ensure that contracts are upheld. Zero government would also not be consistent with economic freedom, as some level of government is necessary to establish legal frameworks and provide public goods and services.

Question 8

Which statement is TRUE about a comparison of economic freedom with political freedom?

Accepted Answer

Economic freedom, which includes the ability to start businesses, trade freely, and enjoy property rights, is often linked to positive economic growth because it encourages entrepreneurship, innovation, and efficient resource allocation. Political freedom, while important for other aspects of a society, is not directly tied to economic growth in the same way.

Question 9

The rights to own private property and to exchange goods with minimal government interference is

Accepted Answer

The rights to own private property and exchange goods with minimal government interference are the characteristics of economic freedom. Therefore, option C "economic freedom" is the correct answer.

Question 10

Assume that in the economy real GDP grows at a constant rate. There has just been a decrease in the rate of growth of the population. This implies that the

Accepted Answer

If real GDP grows at a constant rate while the population growth rate decreases, the amount of GDP per person (per capita real GDP) increases at a higher rate because the same amount of growth is being divided among fewer people.

Question 11

The percentage change in per capita real GDP measures economic growth because it takes into account all of the following variables EXCEPT

Accepted Answer

Per capita real GDP considers the real output per person in a given country or region, taking into account changes in inflation. It also takes into account changes in population growth rates. However, it does not explicitly measure changes in the quality of life, which can be influenced by factors such as income inequality or environmental quality.

Question 12

What will happen to the annual rate of growth of per capita real GDP if real GDP grows at a constant rate of 4 percent and the annual rate of population growth goes from 3 percent to 3.5 percent?

Accepted Answer

The annual rate of growth of per capita real GDP is calculated by subtracting the annual rate of population growth from the real GDP growth rate. So, with real GDP growing at a constant rate of 4 percent and the annual rate of population growth increasing from 3 percent to 3.5 percent, the annual rate of growth of per capita real GDP will decrease from 1 percent (4 percent - 3 percent) to 0.5 percent (4 percent - 3.5 percent).

Question 13

A major contributor to a country's real rate of economic growth is its real GDP growth relative to its

Accepted Answer

The answer of A major contributor to a country's real...

Question 14

Political freedom seems to be ________ important to growth than economic freedom.

Accepted Answer

Economic freedom is generally considered more directly important to growth because it encompasses the ability to participate in markets, trade freely, and enjoy secure property rights, which are foundational to economic development and growth. Political freedom, while important for other aspects of a society's well-being, is often seen as less directly tied to economic growth.

Question 15

Which of the following statements is TRUE about the relationship between high birthrates and real GDP growth?

Accepted Answer

High birthrates can strain resources and reduce per capita incomes, which could inhibit real GDP growth. A lack of economic freedom further exacerbates this situation by stifling entrepreneurship and innovation that would otherwise help drive economic growth.

Question 16

Which of the following best represents economic growth?

Accepted Answer

Economic growth is best represented by an increase in per capita real GDP, as this measures the amount of goods and services that an average person in the economy can actually afford to purchase with their income. An increase in per capita nominal GDP, which only measures the total income of the economy divided by the population, may not indicate a true increase in economic well-being if it is due solely to inflation. An increase in real GDP without accounting for population growth may not reflect an increase in average living standards either.

Question 17

What will happen to the annual rate of growth of per capita real GDP if the annual rate of population growth increases and the annual rate of growth of real GDP goes down?

Accepted Answer

The annual rate of growth of per capita real GDP will decrease since an increase in the growth rate of population and a decrease in the growth rate of real GDP both work to decrease the growth of per capita real GDP. Per capita real GDP is calculated by dividing real GDP by the population. If the population is increased and real GDP goes down, then the per capita real GDP will decrease.

Question 18

Population growth is more likely to contribute to economic growth when

Accepted Answer

Economic freedom allows individuals to pursue their own interests and create new businesses, which leads to job creation and economic growth. With a growing population, there is also an increase in demand for goods and services, which can further stimulate economic growth. However, if capital accumulation is limited or technological progress is limited, it may be difficult to accommodate the needs of a growing population, making economic growth more difficult to achieve. Additionally, if the labor force participation rate does not increase, there may not be enough workers to drive economic growth.

Question 19

Economic freedom is

Accepted Answer

Economic freedom allows individuals and businesses to make their own economic decisions, which leads to competition, innovation, and investment. This often results in positive economic growth, as seen in countries with high levels of economic freedom like the United States and Hong Kong.

Question 20

Economic freedom is

Accepted Answer

Economic freedom refers to the ability of individuals and businesses to engage in voluntary economic transactions without excessive government intervention or regulation. This includes the right to own property, make contracts, and exchange goods and services with others. Therefore, option B is the best choice. Option A refers to political freedom rather than economic freedom. Option C suggests a lack of economic freedom if the government has too much control in a market. Option D is too restrictive, as private individuals may not necessarily possess economic freedom if there is excessive government interference.

Quiz 18: Policies and Prospects for Global Economic Growth

The right to openly support and democratically select national leaders is

Which of the following equations is correct?

Economic growth is measured by

If the average annual growth rate in real GDP for a nation during the last decade was 4 percent per year and the average annual population growth rate was 2 percent per year during the same period, then the average annual growth rate of per capita GDP was

A higher population growth rate can potentially lead to a higher rate of growth in per capita real GDP if

According to the text, a country with a considerable amount of economic freedom will experience

Economic freedom by its nature suggests

Which statement is TRUE about a comparison of economic freedom with political freedom?

The rights to own private property and to exchange goods with minimal government interference is

Assume that in the economy real GDP grows at a constant rate. There has just been a decrease in the rate of growth of the population. This implies that the

The percentage change in per capita real GDP measures economic growth because it takes into account all of the following variables EXCEPT

What will happen to the annual rate of growth of per capita real GDP if real GDP grows at a constant rate of 4 percent and the annual rate of population growth goes from 3 percent to 3.5 percent?

A major contributor to a country's real rate of economic growth is its real GDP growth relative to its

Political freedom seems to be ________ important to growth than economic freedom.

Which of the following statements is TRUE about the relationship between high birthrates and real GDP growth?

Which of the following best represents economic growth?

What will happen to the annual rate of growth of per capita real GDP if the annual rate of population growth increases and the annual rate of growth of real GDP goes down?

Population growth is more likely to contribute to economic growth when

Economic freedom is

Economic freedom is