Question 1

Economic growth may understate changes in standards of living if
A) the growth is accompanied by increasing congestion.
B) leisure time is also increasing.
C) the types of jobs generated feelings of alienation.
D) deflation is taking place.

Accepted Answer

Leisure time is an important aspect of living standards and can contribute greatly to an individual's well-being. If economic growth is accompanied by an increase in leisure time, it may improve the overall quality of life for individuals, even if it is not reflected in traditional economic measures such as GDP. The other choices do not necessarily reflect changes in living standards and may even have negative impacts on quality of life.

Question 2

The term "economic" growth refers to increases in
A) resources use.
B) nominal income.
C) satisfaction.
D) productive capacity.

Accepted Answer

Economic growth refers to a sustained increase in the productive capacity of an economy. This means that an economy is able to produce more goods and services over time, which can lead to increased levels of employment, income, and overall economic well-being. It is not necessarily tied to increases in resource use or nominal income and may or may not result in increased levels of satisfaction.

Question 3

According to your text, which of the following countries currently has the highest annual per capita Gross Domestic Product (GDP) growth rate?
A) China
B) Japan
C) Germany
D) United States

Accepted Answer

According to the text, China currently has the highest annual per capita GDP growth rate.

Question 4

Economic growth is best measured by increases in
A) nominal personal income.
B) nominal Gross Domestic Product (GDP).
C) per capita real Gross Domestic Product (GDP).
D) per capita nominal Gross Domestic Product (GDP).

Accepted Answer

Per capita real Gross Domestic Product (GDP) is the best measure of economic growth as it takes into account the increase in the overall output of goods and services while adjusting for inflation and population growth, which reflects the actual increase in the standard of living of individuals in a country. Nominal personal income and nominal GDP do not account for inflation and may be affected by population growth. Per capita nominal GDP only accounts for population growth and not inflation, and therefore does not accurately reflect the increase in the standard of living of individuals.

Question 5

Which of the following is NOT an important factor affecting economic growth?
A) The rate of saving
B) The growth of leisure
C) The rate of growth of capital
D) The rate of growth in labor productivity

Accepted Answer

While leisure is important in terms of quality of life, it is not a direct factor affecting economic growth. The rate of saving, the rate of growth of capital, and the rate of growth in labor productivity all contribute to economic growth by increasing the amount and efficiency of production.

Question 6

The faster economic growth is, the
A) steeper the slope of the production possibilities curve.
B) farther the production possibilities curve shifts out.
C) closer to the origin the production possibilities curve becomes.
D) more bowed the production possibilities curve becomes.

Accepted Answer

Economic growth is represented by a shift of the production possibilities curve outward, indicating an increase in the economy's productive capacity. A faster economic growth rate results in a greater shift outward of the curve, representing a larger increase in the economy's potential output.

Question 7

When a nation's real per capita Gross Domestic Product (GDP) increases, which of the following is true?
A) Every individual in that nation shares in the economic gain.
B) A nation must channel most of the economic gains to its poorest citizens.
C) Low income people are guaranteed to lose; they never share in their nation's economic gains.
D) We don't know who has most benefited from economic growth unless we look at the distribution of income.

Accepted Answer

Real per capita GDP measures the average economic output per person in a country. When this measure increases, it indicates that the overall economy is growing, but it does not necessarily mean that every individual in that nation is benefiting equally. In fact, the distribution of income is a critical factor in determining who has benefited the most from economic growth. Therefore, we cannot make assumptions about how the gains are distributed among the population without looking at the distribution of income.

Question 8

-Refer to the above table. Which country experienced the greatest economic growth from 2012 to 2013?
A) A
B) B
C) C
D) D

Accepted Answer

The answer of 
-Refer to the above table. Which country...

Question 9

Using a production possibilities curve, economic growth is represented by
A) an outward shift in the curve.
B) a movement along the curve.
C) an inward shift of the curve.
D) a pivot of the curve.

Accepted Answer

Economic growth is represented by an outward shift of the production possibilities curve, indicating an increase in the economy's capacity to produce goods and services. This shift could be due to factors such as technological advancements, increase in capital or labor supply, or improvement in the quality of resources.

Question 10

Costs associated with economic growth include all of the following EXCEPT
A) environmental pollution.
B) psychological problems such as depression.
C) urban congestion.
D) improved health care.

Accepted Answer

The costs associated with economic growth typically involve negative externalities such as environmental pollution and urban congestion, as well as social challenges such as income inequality and unemployment. However, improved health care is not typically considered a cost associated with economic growth, but rather a potential benefit.

Question 11

-Refer to the above table. Which country had the highest growth rate of real Gross Domestic Product (GDP) from 2012 to 2013?
A) A
B) B
C) C
D) D

Accepted Answer

The answer of 
-Refer to the above table. Which country...

Question 12

An increase in growth rates will cause the production possibilities curve to
A) shift inward.
B) become steeper.
C) become flatter.
D) shift outward.

Accepted Answer

An increase in growth rates means that more goods and services can be produced within the same amount of time, which will cause the production possibilities curve to shift outward. This means that more combinations of goods and services can be produced, indicating an increase in the economy's potential output.

Question 13

The growth rate of per capita real Gross Domestic Product (GDP) is a reasonable measure of
A) inflation.
B) productive activity.
C) personal well-being.
D) quality of life.

Accepted Answer

The growth rate of per capita real GDP measures the increase in productive activity per person, which is a key indicator of economic growth. In contrast, inflation relates to the general increase in prices of goods and services, personal well-being is a more comprehensive measure that includes a range of factors beyond economic growth (e.g. health, education, social connections), and quality of life is an even broader measure that incorporates factors such as environment, civic engagement, and cultural activities.

Question 14

Which of the following variables is used to measure economic growth?
A) nominal GDP
B) nominal GDP per capita
C) real GDP
D) real GDP per capita

Accepted Answer

The answer of Which of the following variables is used...

Question 15

When Country X has high economic growth, this country has
A) a high level of real Gross Domestic Product (GDP).
B) a high level of per capita real Gross Domestic Product (GDP).
C) a large increase in per capita real Gross Domestic Product (GDP).
D) a large increase in personal income.

Accepted Answer

The answer of When Country X has high economic growth,...

Question 16

Which of the following best represents economic growth?
A) a movement down a given production possibilities curve.
B) a movement up a given production possibilities curve.
C) an outward or, equivalently, a rightward shift of the production possibilities curve.
D) an inward or, equivalently, leftward shift of the production possibilities curve.

Accepted Answer

Economic growth is represented by an outward or a rightward shift of the production possibilities curve, indicating an increase in the economy's potential to produce goods and services. This can be achieved through improvements in technology, increases in capital and labor inputs, and better education and training. A movement down or up a given production possibilities curve represents a choice between producing more of one good at the expense of another, which is not necessarily indicative of economic growth. An inward or leftward shift of the production possibilities curve represents a decrease in the economy's potential to produce goods and services, which is the opposite of economic growth.

Question 17

Which of the following is true?
A) Real standards of living can increase without any positive economic growth.
B) Real growth rates fail to account for by price level changes.
C) Real and nominal values are not related.
D) Real standards of living decrease with positive economic growth.

Accepted Answer

Real standards of living can increase without any positive economic growth if the improvements are due to technological advancements, increased efficiency, or redistribution of resources. Real growth rates do account for price level changes, and real and nominal values are related. Real standards of living generally increase with positive economic growth.

Question 18

Economic growth is usually defined as
A) the rate of increase in output divided by the increase in labor.
B) the increase in output over time, as measured by real per capita Gross Domestic Product (GDP).
C) the increase in input availability.
D) the reduction in the real cost of necessities.

Accepted Answer

Economic growth is typically defined as the increase in output or production over time, usually measured by real per capita Gross Domestic Product (GDP). This captures the increase in the overall economic activity of a country and the improvement in the standard of living of its citizens. Option A is incorrect as it suggests that economic growth depends only on labor input, ignoring other factors of production. Option C is incorrect as simply increasing input availability without any improvement in production technology or efficiency does not necessarily ensure economic growth. Option D is incorrect as reducing the cost of necessities, while beneficial to consumers, does not capture the broader concept of economic growth.

Question 19

An outward shift of the production possibilities curve represents
A) economic contraction.
B) economic growth.
C) economic recession.
D) economic inflation.

Accepted Answer

An outward shift of the production possibilities curve represents economic growth, which means that an economy is able to produce more goods and services than before due to an increase in resources, technology, or productivity. This results in an increase in the potential output of the economy.

Question 20

There are a number of benefits that usually accompany economic growth. The following are such benefits EXCEPT
A) increase in literacy.
B) increased expected life-spans.
C) political stability.
D) urban congestion.

Accepted Answer

Urban congestion is not a benefit of economic growth. In fact, it is often a negative consequence of rapid urbanization and insufficient infrastructure development. The other three choices are commonly cited as benefits of economic growth. Increased wealth from economic growth can lead to more resources being dedicated to education and healthcare, which can improve literacy rates and life expectancies. Economic growth can also contribute to political stability by creating more jobs and reducing poverty.

Quiz 9: Global Economic Growth and Development

Economic growth may understate changes in standards of living if

The term "economic" growth refers to increases in

According to your text, which of the following countries currently has the highest annual per capita Gross Domestic Product (GDP) growth rate?

Economic growth is best measured by increases in

Which of the following is NOT an important factor affecting economic growth?

The faster economic growth is, the

When a nation's real per capita Gross Domestic Product (GDP) increases, which of the following is true?

-Refer to the above table. Which country experienced the greatest economic growth from 2012 to 2013?

Using a production possibilities curve, economic growth is represented by

Costs associated with economic growth include all of the following EXCEPT

-Refer to the above table. Which country had the highest growth rate of real Gross Domestic Product (GDP) from 2012 to 2013?

An increase in growth rates will cause the production possibilities curve to

The growth rate of per capita real Gross Domestic Product (GDP) is a reasonable measure of

Which of the following variables is used to measure economic growth?

When Country X has high economic growth, this country has

Which of the following best represents economic growth?

Which of the following is true?

Economic growth is usually defined as

An outward shift of the production possibilities curve represents

There are a number of benefits that usually accompany economic growth. The following are such benefits EXCEPT