Question 1

Average GDP per person is
A)Also known as GDP.
B)Also known as per capita GDP.
C)The value of the factors of production used to produce output in a country.
D)A measure of the economic growth rate of a country.

Accepted Answer

Average GDP per person is also known as per capita GDP, which is calculated by dividing the total GDP of a country by its total population. This measure helps to understand the average economic well-being of each individual in a country. The other choices are not accurate definitions of per capita GDP.

Question 2

The best measure of how much output the average person would get if all output were divided evenly among the population would be
A)GDP.
B)The economic growth of the economy.
C)Per capita GDP.
D)The capital stock of the economy.

Accepted Answer

Per capita GDP measures the average output per person in an economy by dividing the total GDP by the population. This gives a more accurate measure of the standard of living and productivity of the average person than just looking at overall GDP or economic growth. The capital stock of the economy is not a direct measure of output and has less relevance to the average person's productivity.

Question 3

What percentage of the world's population subsists on incomes of less than $2 a day?
A)33 percent.
B)50 percent.
C)60 percent.
D)70 percent.

Accepted Answer

As of the latest data available up to 2023, approximately 33 percent of the world's population lives on less than $2 a day. This figure highlights the ongoing issue of extreme poverty affecting a significant portion of the global population.

Question 4

Which of the following countries (or regions) produces the most output annually?
A)Japan.
B)United States.
C)China.
D)Germany.

Accepted Answer

The answer of Which of the following countries (or regions)...

Question 5

Approximately how much of the world's output does China produce?
A)13 percent.
B)0 percent.
C)9 percent.
D)1.5 percent.

Accepted Answer

According to World Bank data from 2019, China produced approximately 13 percent of the world's output.

Question 6

The United States has roughly how much of the world's arable land?
A)14 percent.
B)12 percent.
C)10 percent.
D)8 percent.

Accepted Answer

The answer of The United States has roughly how much...

Question 7

If population growth is less than output growth for a country,
A)Real GDP has decreased.
B)Average living standards will decrease.
C)GDP must have fallen at a fairly rapid rate.
D)The per capita living standard will increase.

Accepted Answer

If the population growth is less than output growth, it means that the economy is producing more output per capita, which can increase the overall standard of living for individuals in the country. Therefore, the per capita living standard will increase.

Question 8

Which of the following is an indicator of how much output the average person would get if all output were divided up evenly among the population?
A)GDP.
B)Economic growth.
C)Per capita GDP.
D)Real GDP.

Accepted Answer

Per capita GDP is a measure of a country's economic output that accounts for its total gross domestic product (GDP) divided by its total population. It provides an indication of how much output on average each person would receive if all the output were divided up equally among the population.

Question 9

Per capita GDP is
A)The sum of consumer goods, investment goods, government services, and net exports.
B)A dollar measure of the economic growth rate of a country.
C)The value of the factors of production used to produce output in a country.
D)The dollar value of GDP divided by total population.

Accepted Answer

Per capita GDP is the dollar value of GDP (the total value of goods and services produced in a country) divided by the total population of a country. This means it is a measure of the average income per person in a country. Option A refers to the components of GDP, option B refers to GDP growth rate, and option C refers to the value of factors of production.

Question 10

The measure of final goods and services produced in the United States is the
A)GDP of the United States.
B)Percentage change in the GDP of the United States.
C)Per capita GDP in the United States.
D)Total sales of all goods during the year.

Accepted Answer

GDP (Gross Domestic Product) is the measure of final goods and services produced in a country during a specified period, usually one year. Therefore, A is the correct answer. B is incorrect because it measures the change in GDP, not the actual GDP. C is incorrect because per capita GDP measures the average GDP per person in the country, not the total GDP. D is incorrect because it would include intermediate goods, which are not included in GDP.

Question 11

Which of the following statements is true about the U.S.economy?
A)The United States produces nearly one-fifth of the world's production.
B)The United States has the world's third largest economy.
C)The United States produces less than half as much as China does.
D)The United States produces less than one-third as much as Japan does.

Accepted Answer

According to World Bank data from 2019, the United States produces approximately 20% of the world's GDP, making it the largest economy in the world. Therefore, statement A is true. Statement B is false, as the United States has the largest economy in the world, followed by China and Japan. Statement C is false, as the United States produces more than China. Statement D is false, as the United States produces more than one-third of what Japan produces.

Question 12

Approximately how much of the world's output does the United States produce?
A)5 percent.
B)17 percent.
C)30 percent.
D)12 percent.

Accepted Answer

According to the World Bank, in 2019, the United States accounted for approximately 17 percent of the world's gross domestic product (GDP).

Question 13

Per capita GDP will definitely rise if
A)The population falls and GDP does not fall.
B)The rate of economic growth falls.
C)The rate of economic growth is less than the rate of population growth.
D) There is a decrease in the size of the working population.

Accepted Answer

Per capita GDP is calculated by dividing the total GDP of a country by its population. Therefore, if the population falls and GDP does not fall, the per capita GDP will definitely rise. This is because the same amount of GDP is now divided among a smaller population.

Question 14

Per capita GDP will definitely fall if
A)The population falls.
B)The rate of economic growth falls.
C)The rate of economic growth is less than the rate of population growth.
D) There is a decrease in the size of the working population.

Accepted Answer

Per capita GDP is calculated by dividing the total GDP of a country by its population. If the rate of economic growth is less than the rate of population growth, the total GDP will increase at a slower rate than the population, resulting in a decrease in per capita GDP. A, B, and D are not necessarily true as they do not directly affect the calculation of per capita GDP.

Question 15

Per capita GDP will rise if GDP
A)Increases more rapidly than the population increases.
B)Increases at the same rate as the population increases.
C)Decreases and the population increases.
D)Increases more slowly than the population increases.

Accepted Answer

Per capita GDP is calculated by dividing the total GDP by the population. Hence, if the GDP increases more rapidly than the population, per capita GDP will rise. This means there is more wealth per person, even though the population is growing.

Question 16

China has roughly how much of the world's population?
A)10 percent.
B)20 percent.
C)30 percent.
D)40 percent.

Accepted Answer

As of 2021, China has approximately 1.4 billion people out of a global population of around 7.9 billion, which is approximately 18 percent of the world's population. Therefore, choice B (20 percent) is the closest estimate.

Question 17

The United States has roughly how much of the world's population?
A)5 percent.
B)10 percent.
C)15 percent.
D)20 percent.

Accepted Answer

According to current estimates, the population of the United States is approximately 331 million, which is about 4.2 percent of the world's population. Therefore, the closest answer choice is A) 5 percent.

Question 18

Average living standards are best measured using
A)GDP.
B)The economic growth of the economy.
C)Per capita GDP.
D)The capital stock of the economy.

Accepted Answer

Per capita GDP takes into account the total output of the economy divided by the population. This gives a measure of average living standards as it shows how much output is available for each individual in the economy. GDP and economic growth do not take into account population size, while the capital stock measures the physical assets of the economy, but does not give a direct measure of living standards.

Question 19

The best definition of GDP is
A)The sum of the physical amounts of goods and services in the economy.
B)A dollar measure of final output produced during a given time period within a nation's borders.
C)A measure of the per capita economic growth rate of the economy.
D)A physical measure of the capital stock of the economy.

Accepted Answer

GDP (Gross Domestic Product) refers to the total value of goods and services produced within a country's borders during a specified time period (usually one year). It is measured in monetary terms, as the dollar value of final output. Option A is incorrect because GDP is not just a sum of physical output, it also includes the value of services produced. Option C is incorrect because it refers to per capita growth rate, not the total economic output. Option D is incorrect because GDP is not a physical measure of the capital stock, but rather a measure of the value of final goods and services produced.

Question 20

Those who are interested in assessing the relative standard of living of different countries over a given time period are most likely to look at
A)GDP.
B)Percentage change in GDP.
C)Population.
D)Per capita GDP.

Accepted Answer

Per capita GDP (Gross Domestic Product) is the best choice for assessing the relative standard of living of different countries over a given time period. It shows the average income per person in a country, taking into account both the total GDP and the population of that country. This allows for a more accurate comparison of living standards between countries of different sizes and populations. GDP and percentage change in GDP are important measures of a country's economic growth, but they do not take into account population size or distribution, and thus cannot provide a comprehensive assessment of living standards. Population size is also an important factor to consider, but it alone does not give us enough information about the standard of living in a country.

Quiz 2: The Useconomy: a Global View

Average GDP per person is

The best measure of how much output the average person would get if all output were divided evenly among the population would be

What percentage of the world's population subsists on incomes of less than $2 a day?

Which of the following countries (or regions) produces the most output annually?

Approximately how much of the world's output does China produce?

The United States has roughly how much of the world's arable land?

If population growth is less than output growth for a country,

Which of the following is an indicator of how much output the average person would get if all output were divided up evenly among the population?

Per capita GDP is

The measure of final goods and services produced in the United States is the

Which of the following statements is true about the U.S.economy?

Approximately how much of the world's output does the United States produce?

Per capita GDP will definitely rise if

Per capita GDP will definitely fall if

Per capita GDP will rise if GDP

China has roughly how much of the world's population?

The United States has roughly how much of the world's population?

Average living standards are best measured using

The best definition of GDP is

Those who are interested in assessing the relative standard of living of different countries over a given time period are most likely to look at