Question 1

Change in per capita real gross domestic product (GDP)is the best measure of economic growth because it

Accepted Answer

Per capita real GDP is a measure of economic growth that adjusts for changes in the price level and population growth, providing a more accurate picture of the growth in economic output per person. This means that it is a more reliable measure of actual changes in the economy, as it shows the increase in real wealth generated by a country. It is therefore superior to nominal GDP, which does not adjust for changes in the price level, and provides a value of economic output that can be distorted by changes in prices.

Question 2

If an economy experiences economic growth,does that mean that everyone in that economy will be better off?

Accepted Answer

Economic growth refers to an increase in the total output of goods and services in an economy. While this can lead to an increase in the average standard of living, it does not necessarily mean that everyone in the economy will be better off. Some individuals or groups may not benefit, or may even be negatively impacted, by the changes brought by economic growth.

Question 3

Average income in Western Europe in 1600 was roughly $1,400 per year,while in Latin America,it was less than half of that.Which of the following best explains this difference in average income?

Accepted Answer

Western Europe had more advanced technology than Latin America, giving them a competitive advantage in producing goods and services, leading to higher income levels.

Question 4

From 2013 to 2014,nominal gross domestic product (GDP)in the United States increased by

Accepted Answer

The nominal GDP in the United States increased by 3.9 percent from 2013 to 2014.

Question 5

The percent change in real per capita gross domestic product (GDP)equals the

Accepted Answer

Real per capita GDP adjusts for changes in population and inflation. Therefore, the percent change in real per capita GDP equals the percent change in nominal GDP minus the rate of population growth minus the percent change in prices.

Question 6

The two factors that must be subtracted from the percent change in nominal gross domestic product (GDP)to yield the percent change in per capita real GDP are the

Accepted Answer

In order to calculate the percent change in per capita real GDP, we need to adjust for changes in prices (to get real GDP) and changes in population (to get per capita GDP). Therefore, the two factors that must be subtracted from the percent change in nominal GDP are the percent change in prices and the rate of population growth.

Question 7

Nominal gross domestic product (GDP)is a poor measure of economic growth because it

Accepted Answer

Nominal GDP only measures the total value of goods and services produced in an economy without adjusting for inflation or changes in population. This means that changes in prices and population growth can make nominal GDP an unreliable indicator of economic growth.

Question 8

Access to lifesaving medicine is very limited in parts of Africa; as a result,over 10 percent of children do not reach the age of five.What effect would an increase in medical aid to African children have on overall economic growth for the continent?

Accepted Answer

An increase in medical aid to African children would increase the health and productivity of the labor supply, as more children would survive to become productive members of society. This would lead to an increase in overall economic growth for the continent.

Question 9

The percent change in nominal gross domestic product (GDP)minus the percent change in prices and the rate of population growth equals

Accepted Answer

The calculation described in the question is that of the percent change in per capita real GDP. By subtracting the percent change in prices and the rate of population growth, we arrive at the percent change in the purchasing power of each individual in the economy, which is what real per capita GDP measures. Therefore, choice D is the best answer.

Question 10

In 2013,U.S.gross domestic product (GDP)was roughly

Accepted Answer

According to the Bureau of Economic Analysis, the estimated GDP for the United States in 2013 was $16.8 trillion. Therefore, choice A is the correct answer.

Question 11

The two factors that must be added to the percent change in per capita real gross domestic product (GDP)to yield the percent change in nominal GDP are the

Accepted Answer

To calculate the percent change in nominal GDP, we need to add the percent change in prices (inflation) and the rate of population growth to the percent change in per capita real GDP. This is because nominal GDP takes into account the changes in both prices and population, whereas per capita real GDP only takes into account changes in economic output. The other choices do not accurately reflect the factors that contribute to nominal GDP.

Question 12

Economic growth equals the percent change in nominal gross domestic product (GDP)minus the

Accepted Answer

Economic growth equals the percent change in nominal gross domestic product (GDP) minus the percent change in prices.

Question 13

Access to lifesaving medicine is very limited in parts of Africa; as a result,over 10 percent of children do not reach the age of five.What effect would this have on economic growth in Africa?

Accepted Answer

The limited access to lifesaving medicine and high child mortality rate would result in a smaller workforce in the future, leading to slower economic growth. Additionally, workers may have to take time off to care for sick family members or may be less productive due to illness, further slowing economic growth.

Question 14

From 2009 to 2010,nominal gross domestic product (GDP)in the United States grew by 3.8 percent.Given that prices increased by 1 percent and per capita real GDP grew by 1.8 percent,we know that the population grew by

Accepted Answer

The answer of From 2009 to 2010,nominal gross domestic product...

Question 15

From 2013 to 2014,real gross domestic product (GDP)in the United States increased by

Accepted Answer

According to data from the Bureau of Economic Analysis, real GDP in the United States increased by 1.7 percent from 2013 to 2014.

Question 16

In 2014,U.S.gross domestic product (GDP)was roughly $17.4 trillion.Given that the U.S.population was roughly 319 million people,per capita GDP in the United States in 2014 was roughly

Accepted Answer

To calculate per capita GDP, we divide the total GDP by the total population. Therefore, per capita GDP in the United States in 2014 was approximately $54,545 ($17.4 trillion ÷ 319 million).

Question 17

Annual real per capita gross domestic product (GDP)in the United States was roughly $44,000 in 2010.If it grew by 3 percent the following year,by 2011 the annual real per capita GDP would be

Accepted Answer

To find the 2011 per capita GDP, we need to multiply the 2010 per capita GDP by 1 + the growth rate (as a decimal).

Per capita GDP in 2011 = $44,000 x 1.03 = $45,320

Therefore the correct option is D) $45,320.

Question 18

From 2013 to 2014,U.S.real gross domestic product (GDP)increased by 2.4 percent and the U.S.population grew by 0.7 percent.Therefore,per capita real GDP in the United States increased by

Accepted Answer

Per capita real GDP growth is calculated by subtracting the population growth rate from the real GDP growth rate. Thus, 2.4% (GDP growth) - 0.7% (population growth) = 1.7%.

Question 19

From 2009 to 2010,nominal gross domestic product (GDP)in the United States grew by 3.8 percent.Given that prices increased by 1 percent and the population grew by 1 percent,we know that per capita real GDP grew by

Accepted Answer

To find per capita real GDP growth, subtract the inflation rate (1%) and the population growth rate (1%) from the nominal GDP growth rate (3.8%). This results in a per capita real GDP growth of 1.8%.

Question 20

In 2015,Canada's gross domestic product (GDP)was roughly $1.6 trillion.Given that Canada's population was roughly 36 million people,per capita GDP in Canada in 2011 was roughly

Accepted Answer

Per capita GDP is calculated by dividing the total GDP by the population. $1.6 trillion divided by 36 million people equals approximately $44,444.

Quiz 24: Economic Growth and the Wealth of Nations

Change in per capita real gross domestic product (GDP) is the best measure of economic growth because it

If an economy experiences economic growth,does that mean that everyone in that economy will be better off?

Average income in Western Europe in 1600 was roughly $1,400 per year,while in Latin America,it was less than half of that.Which of the following best explains this difference in average income?

From 2013 to 2014,nominal gross domestic product (GDP) in the United States increased by

The percent change in real per capita gross domestic product (GDP) equals the

The two factors that must be subtracted from the percent change in nominal gross domestic product (GDP) to yield the percent change in per capita real GDP are the

Nominal gross domestic product (GDP) is a poor measure of economic growth because it

Access to lifesaving medicine is very limited in parts of Africa; as a result,over 10 percent of children do not reach the age of five.What effect would an increase in medical aid to African children have on overall economic growth for the continent?

The percent change in nominal gross domestic product (GDP) minus the percent change in prices and the rate of population growth equals

In 2013,U.S.gross domestic product (GDP) was roughly

The two factors that must be added to the percent change in per capita real gross domestic product (GDP) to yield the percent change in nominal GDP are the

Economic growth equals the percent change in nominal gross domestic product (GDP) minus the

Access to lifesaving medicine is very limited in parts of Africa; as a result,over 10 percent of children do not reach the age of five.What effect would this have on economic growth in Africa?

From 2009 to 2010,nominal gross domestic product (GDP) in the United States grew by 3.8 percent.Given that prices increased by 1 percent and per capita real GDP grew by 1.8 percent,we know that the population grew by

From 2013 to 2014,real gross domestic product (GDP) in the United States increased by

In 2014,U.S.gross domestic product (GDP) was roughly $17.4 trillion.Given that the U.S.population was roughly 319 million people,per capita GDP in the United States in 2014 was roughly

Annual real per capita gross domestic product (GDP) in the United States was roughly $44,000 in 2010.If it grew by 3 percent the following year,by 2011 the annual real per capita GDP would be

From 2013 to 2014,U.S.real gross domestic product (GDP) increased by 2.4 percent and the U.S.population grew by 0.7 percent.Therefore,per capita real GDP in the United States increased by

From 2009 to 2010,nominal gross domestic product (GDP) in the United States grew by 3.8 percent.Given that prices increased by 1 percent and the population grew by 1 percent,we know that per capita real GDP grew by

In 2015,Canada's gross domestic product (GDP) was roughly $1.6 trillion.Given that Canada's population was roughly 36 million people,per capita GDP in Canada in 2011 was roughly