Question 1

A(n) ________ in the amount of resources will tend to ________ economic growth.

Accepted Answer

The answer of  A(n) ________ in the amount of...

Question 2

Which of the following would be classified as a natural resource?

Accepted Answer

Natural resources are those that are derived from the environment. Coal is a natural resource as it is a fossil fuel that is mined from the earth's crust. Obtaining a college degree, a factory, a loaf of bread, and wireless networking equipment are not natural resources.

Question 3

From 2006 to 2010, per capita real gross domestic product GDP) in the Philippines grew an average of 3.16 percent per year. At that rate, according to the Rule of 70, in roughly how many years will the Filipino economy double in size?

Accepted Answer

The Rule of 70 states that to find the number of years for a variable to double, divide 70 by the annual growth rate. In this case, 70 divided by 3.16 equals approximately 22. Therefore, it will take approximately 22 years for the Filipino economy to double in size.

Question 4

An increase in ________ would lead to an increase in long-run economic growth.

Accepted Answer

An increase in resources (such as natural resources, human capital, and physical capital) and technology (innovations that increase productivity and efficiency) would lead to an increase in long-run economic growth because it would allow for more and better goods and services to be produced. Consumer spending and borrowing, imports and exports, and prices and interest rates can all impact short-term economic growth, but do not necessarily lead to sustained long-run growth. Government taxes and fees can negatively impact economic growth by reducing incentives for investment and entrepreneurship.

Question 5

Which of the following are the three major categories of resources?

Accepted Answer

The answer of Which of the following are the three...

Question 6

From 2006 to 2010, per capita real gross domestic product GDP) in Egypt grew an average of 4.8 percent per year. At that rate, according to the Rule of 70, in roughly how many years will the Egyptian economy double in size?

Accepted Answer

The Rule of 70 is a way to estimate the number of years it takes for a quantity to double, given a constant annual growth rate. It is calculated by dividing 70 by the annual growth rate. For Egypt's GDP growth rate of 4.8%, the doubling time is approximately 70 / 4.8 ≈ 14.58 years, which rounds to 15 years.

Question 7

From 2006 to 2010, per capita real gross domestic product GDP) in China grew an average of 10.62 percent per year. At that rate, according to the Rule of 70, in roughly how many years will Chinese per capita real GDP double in size, beginning in 2006?

Accepted Answer

Using the Rule of 70:
Number of years to double = 70/annual growth rate
Number of years to double = 70/10.62 = 6.6 years (rounded to one decimal place)

Question 8

Resources are

Accepted Answer

Resources refer to the inputs used to produce goods and services, such as labor, capital, natural resources, and technology. Option A is incorrect as it refers to the output or the final product. Option C is incorrect as technology is one of the resources used, but not the definition of resources. Option D is incorrect as institutions may play a role in promoting efficiency, but they are not resources themselves. Option E is incorrect as it refers to cost, which is a result of using resources to produce goods and services, but not a definition of resources.

Question 9

Saudi Arabia is an oil-rich country in the Middle East. Much of the country is covered by desert, meaning that the nation's food production is very low. Much of its food must be imported from other countries. Does this mean that Saudi Arabia has a very small endowment of natural resources?

Accepted Answer

Saudi Arabia may have a low food production, but it has a large endowment of petroleum, which is considered a natural resource.

Question 10

From 2006 to 2010, per capita real gross domestic product GDP) in Ethiopia grew an average of 7.99 percent per year. At that rate, according to the Rule of 70, in roughly how many years will the Ethiopian economy double in size?

Accepted Answer

Using the Rule of 70, we divide 70 by the annual growth rate (7.99%):
70/7.99 = 8.76
Therefore, it would take approximately 8.76 years (or about 8.8 years) for the Ethiopian economy to double in size. The correct answer is (C).

Question 11

From 2006 to 2010, per capita real gross domestic product GDP) in India grew an average of 7.11 percent per year. At that rate, according to the Rule of 70, in roughly how many years will the Indian economy double in size?

Accepted Answer

The Rule of 70 states that to find the approximate number of years for a variable to double, divide 70 by the annual growth rate. 
In this case, 70 divided by the annual growth rate of 7.11% is approximately 9.8 years. Therefore, the Indian economy will double in size in about 9.8 years.

Question 12

From 2006 to 2010, per capita real gross domestic product GDP) in Poland grew an average of 4.71 percent per year. At that rate, according to the Rule of 70, in roughly how many years will the Polish economy double in size?

Accepted Answer

By using the Rule of 70, we can estimate the number of years it takes for a variable to double by dividing 70 by the rate of growth. In this case, 70 divided by the average annual growth rate of 4.71% gives us approximately 14.9 years. Therefore, the answer is B) 14.9 years.

Question 13

We know that resources are important for economic growth. Which of the following statements about resources is true?

Accepted Answer

Resources can be natural, like mineral deposits or forests, or man-made, like machinery and factories. This is the only option that accurately describes the different types of resources available. Option A is incorrect as not all resources are man-made, e.g. natural resources like oil, gas, and minerals. Option B is not true as many resources are scarce, including rare earth metals and certain minerals. Option D is also incorrect as the endowments of resources vary greatly between countries. Option E is not true for all countries, as some have been successful in exploiting their resources to drive economic growth.

Question 14

From 2006 to 2010, per capita real gross domestic product GDP) in Croatia grew an average of 1.08 percent per year. At that rate, according to the Rule of 70, in roughly how many years will the Croatian economy double in size?

Accepted Answer

The answer of From 2006 to 2010, per capita real...

Question 15

An example of physical capital is

Accepted Answer

Physical capital refers to man-made resources used for production, such as buildings, machinery, and equipment. Of the options given, a factory is the only example of physical capital.

Question 16

In 1950, Nicaragua and Brazil had roughly the same size economies. Now, Brazil's economy is almost five times as large as Nicaragua's. This is most likely because

Accepted Answer

Brazil's larger economy is most likely due to its better resources and technology compared to Nicaragua. This has allowed Brazil to increase its productivity and competitiveness over time. The other options, such as trade, taxes, government regulations, and education systems, may also play a role, but they are less significant factors compared to the availability of resources and technology.

Question 17

Japan is a nation of over 6,800 islands, none of which is very large. The largest island, Honshu, is roughly the same size as the state of Montana in the western United States. Does this mean that Japan is destined to have low economic growth and standards of living?

Accepted Answer

Japan's economy has already proven to be successful despite its small size and lack of space for agriculture. Japan is resource-rich and technologically advanced, which has allowed it to develop a strong manufacturing industry and to become a global leader in technology and innovation. Japan's standards of living are also high due to its efficient use of resources and infrastructure. Therefore, choice C is the best option as it acknowledges Japan's strengths and potential for economic growth.

Question 18

The inputs used to produce goods and services are also known as

Accepted Answer

Inputs refer to the resources used to produce goods and services, such as labor, capital, and raw materials. Therefore, the best choice is B, resources.

Question 19

From 2009 to 2010 per capita real gross domestic product GDP) in the United States grew by 1.8 percent. At that rate, according to the Rule of 70, in roughly how many years will per capita real GDP double?

Accepted Answer

The answer of From 2009 to 2010 per capita real...

Question 20

From 2006 to 2010, per capita real gross domestic product GDP) in Japan grew an average of 0.46 percent per year. At that rate, according to the Rule of 70, in roughly how many years will the Japanese economy double in size?

Accepted Answer