Question 1

At first patents might seem like a deterrent to growth because in effect they restrict the use of new technology. Yet many economists believe that patents generate growth. Explain why.

Accepted Answer

The answer of At first patents might seem like a...

Question 2

Some economists argue that it is possible to raise the standard of living by reducing population growth. As an economist interested in incentives rather than coercion, what kind of policy would you recommend to slow population growth?

Accepted Answer

The answer of Some economists argue that it is possible...

Question 3

Last year real GDP per person in the imaginary nation of Davisland was $4,310. The year before it was $4,200. By about what percentage did real GDP per person grow during the period?

Accepted Answer

The growth in real GDP per person is calculated as [(4310 - 4200) / 4200] * 100 = (110 / 4200) * 100 ≈ 2.62%, which rounds to approximately 3 percent.

Question 4

The United Kingdom is

Accepted Answer

The United Kingdom is considered an advanced economy, but its rate of economic growth has generally been lower than that of the United States over the past century.

Question 5

Which of the following is correct?

Accepted Answer

The correct answer is D because Japan's rapid economic growth, especially in the post-World War II era, allowed it to catch up significantly with more developed economies like the United States. However, despite this high growth rate, Japan's level of real GDP per person remains lower than that of the United States, reflecting the substantial economic lead the U.S. had at the beginning of this period and differences in population growth, among other factors.

Question 6

Last year real GDP in the imaginary nation of Nylon was 435.0 billion and the population was 2.6 million. The year before, real GDP was 380.0 billion and the population was 2.3 million. What was the growth rate of real GDP per person during the year?

Accepted Answer

The growth rate of real GDP per person is calculated by first finding the real GDP per person for each year and then calculating the percentage growth. For the year before last, real GDP per person = 380.0 billion / 2.3 million = 165.22. For last year, real GDP per person = 435.0 billion / 2.6 million = 167.31. The growth rate = [(167.31 - 165.22) / 165.22] * 100 = 1.26%, which rounds to 1.3%.

Question 7

The level of real GDP per person

Accepted Answer

The level of real GDP per person and the growth rate of real GDP per person both vary significantly across different countries due to factors such as differences in technology, capital, education, and government policies.

Question 8

Which of the following statements accurately describes catch-up growth?

Accepted Answer

Catch-up growth refers to the phenomenon where countries with lower income levels grow more rapidly than countries with higher income levels, thereby narrowing the income gap. Statement A implies a rapid growth rate for China, suggesting it could catch up with or surpass richer countries if it maintains a high growth rate, which aligns with the concept of catch-up growth.

Question 9

Over the past century in the United States, real GDP per person has grown, on average, by about

Accepted Answer

Over the past century, the United States has experienced an average real GDP per person growth rate of about 2 percent per year. This rate captures the overall increase in economic productivity and living standards over time.

Question 10

Which of the following countries has had the greatest growth rate of real GDP per person within the last 10 years?

Accepted Answer

The answer of Which of the following countries has had...

Question 11

One variable responsible for most significant explanation of variations in living standards around the world is

Accepted Answer

Productivity, or the amount of goods and services produced from each hour of a worker's time, is the most significant factor in explaining variations in living standards around the world. Higher productivity leads to higher incomes and living standards.

Question 12

The rate of real economic growth is

Accepted Answer

The rate of real economic growth can be underestimated using measures of income growth because such measures may not fully capture improvements in quality of life, technological advancements, and increases in non-market activities that contribute to economic well-being.

Question 13

Productivity is the amount of goods and services

Accepted Answer

Productivity is defined as the amount of goods and services produced for each hour of a worker's time, and it is linked to a nation's economic policies, as these policies can influence factors like labor efficiency, technology, and capital investment.

Question 14

In 1870, the richest country in the world was

Accepted Answer

In 1870, the United Kingdom was the richest country in the world, largely due to its early industrialization and its vast empire, which made it the world's foremost economic and naval power at the time.

Question 15

Which of the following can be measured by the level of real GDP per person?

Accepted Answer

The answer of Which of the following can be measured...

Question 16

Out of the following economic statistics, which is the best measure of economic prosperity?

Accepted Answer

The level of real GDP is the best measure of economic prosperity because it measures the total value of all goods and services produced in an economy, adjusted for inflation. This means that it takes into account both the quantity of goods and services produced and the prices at which they are sold.

Question 17

Compare and contrast the population theories of Malthus and Kremer.

Accepted Answer

The answer of Compare and contrast the population theories of...

Question 18

How do outward-oriented policies affect a nation's productivity?

Accepted Answer

The answer of How do outward-oriented policies affect a nation's...

Question 19

From 1960 to 1990, in which of the following countries has investment resulted in economic growth sufficiently higher than that in the United States?

Accepted Answer

South Korea experienced rapid economic growth from the 1960s to the 1990s, significantly outpacing the growth of the United States during the same period. This growth was driven by a combination of factors including high levels of investment, government-led industrialization policies, and export-focused economic strategies.

Question 20

Japan is

Accepted Answer

Japan is an advanced economy, and over the past century its rate of economic growth has been higher than that of the United States.

Quiz 25: Production and Growth