Question 1

In 2009, the imaginary nation of Dorados had a population of 8,000 and real GDP of 3,000,000. During the year its real GDP grew by about 2.9%. Which of the following sets of growth rates is consistent with this growth in real GDP?

Accepted Answer

We can use the formula to calculate the per capita real GDP growth rate, which is given by:

per capita real GDP growth rate = (real GDP growth rate - population growth rate)

Plugging in the numbers, we get:

per capita real GDP growth rate = 2.9% - 4% = -1.1%

This means that the population is growing faster than the economy, resulting in a decline in per capita real GDP.

Out of the given choices, only option C has a population growth rate higher than the real GDP growth rate, which is consistent with the negative per capita real GDP growth rate we calculated. Therefore, the answer is C.

Question 2

In 2009, the imaginary nation of Mainland had a population of 6,000 and real GDP of 120,000. In 2010 the population was 6,200 and real GDP of 128,960. Over the year in question, real GDP per person in Mainland grew by

Accepted Answer

Real GDP per person can be calculated by dividing real GDP by the population. 
In 2009, real GDP per person in Mainland was 120,000/6,000 = 20. 
In 2010, real GDP per person in Mainland was 128,960/6,200 ≈ 20.78. 
Therefore, the growth in real GDP per person over the year was (20.78-20)/20 = 0.039, or 3.9%. Rounded to the nearest percent, this is a growth of 4%, which is high compared to average U.S. growth over the last one-hundred years. Choice C is the correct answer.

Question 3

In 2009, the imaginary nation of Viloxia had a population of 5,000 and real GDP of 500,000. In 2010 it had a population of 5,100 and real GDP of 520,200. During 2009 real GDP in Viloxia grew by

Accepted Answer

The answer of In 2009, the imaginary nation of Viloxia...

Question 4

Which of the following correctly ranks the three countries, from highest to lowest, for percentage of high-school age children in school?

Accepted Answer

According to the chart, the United Kingdom has 100% of high-school age children in school, followed by Mexico with 72%, and Mali with 41%. Therefore, the correct ranking from highest to lowest percentage of high-school age children in school is United Kingdom, Mexico, Mali. Choice C correctly lists the countries in this order.

Question 5

Last year real GDP in the imaginary nation of Oceania was 561.0 billion and the population was 2.2 million. The year before, real GDP was 500.0 billion and the population was 2.0 million. What was the growth rate of real GDP per person during the year?

Accepted Answer

The answer of Last year real GDP in the imaginary...

Question 6

Last year real GDP in the imaginary nation of Populia was 907.5 billion and the population was 3.3 million. The year before real GDP was 750 billion and the population was 3 million. What was the growth rate of real GDP per person during the year?

Accepted Answer

The answer of Last year real GDP in the imaginary...

Question 7

Last year the imaginary nation of Freedonia had a population of 2,700 and real GDP of 16,200,000. This year it had a population of 2,500 and real GDP of 14,640,000. What was the growth rate of real GDP per person between last year and this year?

Accepted Answer

To find the growth rate of real GDP per person, calculate the GDP per person for each year and then find the percentage change. Last year: 16,200,000 / 2,700 = 6,000. This year: 14,640,000 / 2,500 = 5,856. The growth rate is ((5,856 - 6,000) / 6,000) * 100 = -2.4%.

Question 8

Last year Panglossia had real GDP of 27.0 billion. This year it had real GDP of 31.5 billion. Which of the following changes in population is consistent with a 5 percent growth rate of real GDP per person over the last year?

Accepted Answer

The answer of Last year Panglossia had real GDP of...

Question 9

Of the following countries, which grew most slowly, in terms of real GDP per person, over the last 100 years?

Accepted Answer

The answer of Of the following countries, which grew most...

Question 10

Which of the following is correct?

Accepted Answer

The answer of Which of the following is correct?
...

Question 11

In 2009, the imaginary nation of Mainland had a population of 7,000 and real GDP of 210,000. In 2010 the population was 7,300 and real GDP of 223,380. Over the year in question, real GDP per person in Mainland grew by

Accepted Answer

The answer of In 2009, the imaginary nation of Mainland...

Question 12

Which of the following statements is correct?

Accepted Answer

The statement A is correct, as real income per person was indeed higher in the United Kingdom than in any other country in 1870. Statement B is incorrect, as India did not experience significantly higher growth of real income per person than the United States between those years. Statement C is also incorrect, as Canada experienced similar growth to the United States during that time period. Therefore, only statement A is correct.

Question 13

Last year real GDP per person in the imaginary nation of Olympus was 4,500. The year before it was 4,250. By about what percentage did Olympian real GDP per person grow during the period?

Accepted Answer

The growth rate is calculated as ((4500 - 4250) / 4250) * 100 = 5.9 percent.

Question 14

Over the last 100 years which of the following had growth rates higher than that of the United States?

Accepted Answer

The answer of Over the last 100 years which of...

Question 15

Which of the following pairs of countries experienced approximately the same rate of growth of real income per person over the last 100 or so years?

Accepted Answer

The answer of Which of the following pairs of countries...

Question 16

In 2009, the imaginary nation of Florastan had a population of 8,300 and real GDP of 190,900. Florastan had 5% growth in real GDP per person. In 2010 it had a population of 8,400. What was real GDP in Florastan in 2010?

Accepted Answer

To calculate the real GDP in 2010, we first need to calculate the real GDP per person in 2009. Real GDP per person can be calculated by dividing real GDP by the population, so:
Real GDP per person in 2009 = 190,900 / 8,300 = 23
Since Florastan had 5% growth in real GDP per person, we can calculate the real GDP per person in 2010 as:
Real GDP per person in 2010 = 23 x 1.05 = 24.15
To find the real GDP in 2010, we can multiply the real GDP per person by the population, so:
Real GDP in 2010 = 24.15 x 8,400 = 202,860
Therefore, the best choice is B.

Question 17

In 1870, the richest country in the world was

Accepted Answer

In 1870, the United Kingdom had the highest GDP (the total value of goods and services produced in a country) in the world, thanks to its large maritime empire and the Industrial Revolution. The United States would not overtake the United Kingdom in GDP until the early 20th century. Spain and Germany were not among the top economies in the world at the time.

Question 18

Which of the following is indicated by the data on real income per person for various countries over the past 100 or so years?

Accepted Answer

If a relatively poor country had experienced a consistent growth rate of 3.5 percent per year over 100 years, it would indeed have become relatively rich due to the power of compound growth.

Question 19

Which list contains, in this order, a country whose real GDP per person grew faster and one whose real GDP per person grew slower than real GDP per person in the U.S. over the last 100 years?

Accepted Answer

China's real GDP per person has grown faster than that of the U.S. over the last 100 years, while Pakistan's has grown slower.

Question 20

In 2009, the imaginary nation of Florastan had a population of 8,044 and real GDP of 36,198,000. In 2010 it had a population of 7,800 and real GDP of 35,880,000. What was the growth rate of real GDP per person in Florastan between 2009 and 2010?

Accepted Answer

The answer of In 2009, the imaginary nation of Florastan...

Quiz 12: Production and Growth