Question 1

A country experiencing a growth rate of 8% per year can go from being one of the poorest to one of the richest in
A) one generation. In the last couple of decades China's growth rate has been higher than 8%.
B) one generation. However, in the last couple of decades not even China's growth rate has been this high.
C) three generations. In the last couple of decades China's growth rate has been higher than 8%.
D) three generations. However, in the last couple of decades not even China's growth rate has been this high.

Accepted Answer

According to the question, a country experiencing a growth rate of 8% per year can go from being one of the poorest to one of the richest. One generation typically refers to around 20-30 years, and in the last couple of decades (roughly since the 1990s), China's growth rate has been higher than 8%, meaning it is possible for a country to achieve this level of growth in one generation.

Question 2

Over the last century, U.S. real GDP per person grew at a rate of about
A) 2 percent per year, so that it is now 2 times as high as it was a century ago.
B) 2 percent per year, so that it is now 8 times as high as it was a century ago.
C) 4 percent per year, so that it is now 2 times as high as it was a century ago.
D) 4 percent per year, so that it is now 8 times as high as it was a century ago.

Accepted Answer

According to historical data, U.S. real GDP per person has grown at an average rate of 2 percent per year over the last century. Using the rule of 72, which estimates the time it takes for a quantity to double at a certain growth rate, we can see that 72/2 = 36 years. Therefore, real GDP per person would have doubled approximately three times (36 x 3 = 108 years) over the last century, leading to an increase of 2^3 = 8 times its value a century ago.

Question 3

Average income has been stagnant for many years in
A) Argentina.
B) India.
C) Senegal.
D) All of the above are correct.

Accepted Answer

C

Question 4

Which of the following are residents of rich countries likely to have in greater quantities, or better quality, than residents of poor countries?
A) housing
B) healthcare
C) life expectancy
D) All of the above.

Accepted Answer

Residents of rich countries are likely to have better quality and greater quantities of housing, healthcare, and a higher life expectancy compared to residents of poor countries. These factors are often closely linked to a country's economic and social development. Wealthy countries can invest more in the provision of healthcare, housing, and other essential services, leading to improved outcomes for their citizens. Poorer countries may struggle to provide adequate resources and infrastructure for their citizens, leading to poorer health outcomes and lower life expectancy.

Question 5

The average income in a rich country, such as the United States or Japan, is more than
A) 3 times, but less than 5 times, the average income in a poor country, such as Indonesia or Nigeria.
B) 5 times, but less than 10 times, the average income in a poor country, such as Indonesia or Nigeria.
C) 10 times, but less than 20 times, the average income in a poor country, such as Indonesia or Nigeria.
D) more than 20 times the average income in a poor country, such as Indonesia or Nigeria.

Accepted Answer

The answer of The average income in a rich country,...

Question 6

Productivity is the amount of goods and services
A) an economy produces. It is not linked to a nation's economic policies.
B) an economy produces. It is linked to a nation's economic policies.
C) produced for each hour of a worker's time. It is not linked to a nation's economic policies.
D) produced for each hour of a worker's time. It is linked to a nation's economic policies.

Accepted Answer

The answer of Productivity is the amount of goods and...

Question 7

The average income in a rich country
A) is about 5 times that in a poor country. Further, people in rich countries have longer life expectancy.
B) is about 5 times that in a poor country. However, people in rich countries have about the same life expectancy as those in poor countries.
C) is more than ten times that in a poor country. Further, people in rich countries have longer life expectancy.
D) is more than ten times that in poor country. However, people in rich countries have about the same life expectancy as those in poor countries.

Accepted Answer

According to the statement, the average income in a rich country is more than ten times that in a poor country. Additionally, it is said that people in rich countries have longer life expectancy. Hence, option C is the best choice.

Question 8

In recent decades, average income in some East Asian countries, such as South Korea, Singapore, and Taiwan, has risen about
A) 2 percent per year.
B) 4 percent per year.
C) 7 percent per year.
D) 10 percent per year.

Accepted Answer

According to the text, in recent decades, the average income in some East Asian countries like South Korea, Singapore, and Taiwan has risen by about 7 percent per year.

Question 9

Which of the following is a good gauge of economic progress?
A) the level of real GDP per person, but not the growth rate of real GDP per person
B) the level of real GDP per person and the growth rate of real GDP per person
C) the growth rate of real GDP per person, but not the level of real GDP per person
D) neither the level nor the growth rate of real GDP per person

Accepted Answer

The answer of Which of the following is a good...

Question 10

Average income has been stagnant for many years in
A) Chad.
B) Gabon.
C) Senegal.
D) All of the above are correct.

Accepted Answer

All three countries listed have experienced stagnant average incomes for many years.

Question 11

In which of the following countries has economic growth been sufficiently strong in recent history to propel that country from being among the poorest in the world to being among the richest in the world?
A) India
B) Mexico
C) Senegal
D) Singapore

Accepted Answer

Singapore is often cited as an example of a country that has experienced rapid economic growth, and has transformed from being one of the poorest countries in the world to becoming a highly developed economy in a short period of time. This has been attributed to a combination of factors, including a highly skilled workforce, a strategic location, an open and business-friendly environment, and strong government policies aimed at promoting economic growth. While India and Mexico have also experienced economic growth to varying degrees, they have not yet achieved the same level of development as Singapore. Senegal remains one of the poorest countries in the world, with high levels of poverty and unemployment.

Question 12

Average income has been stagnant for many years in
A) Gabon.
B) Ireland.
C) Singapore.
D) All of the above are correct.

Accepted Answer

The answer of Average income has been stagnant for many...

Question 13

In some East Asian countries, average income, as measured by real GDP per person, has recently grown at an average annual rate that implies output will double about every
A) 10 years.
B) 15 years.
C) 20 years.
D) 25 years.

Accepted Answer

The answer of In some East Asian countries, average income,...

Question 14

Over the past century in the United States, average income as measured by real GDP per person has grown about
A) 4 percent per year, which implies a doubling about every 18 years.
B) 4 percent per year, which implies a doubling about every 8 years.
C) 2 percent per year, which implies a doubling about every 35 years.
D) 2 percent per year, which implies a doubling about every 18 years.

Accepted Answer

According to the text, average income as measured by real GDP per person in the United States has grown at a rate of 2 percent per year, which implies a doubling about every 35 years. Therefore, the correct answer is C.

Question 15

In the United States, as measured by real GDP per person, average income is about how many times as high as average income a century ago?
A) 2
B) 4
C) 6
D) 8

Accepted Answer

According to the information provided, real GDP per person has increased by a factor of 8 in the last century, which means that average income is now 8 times higher than it was a century ago. Therefore, the correct answer is D) 8.

Question 16

Over the past 100 years, U.S. real GDP per person has doubled about every 35 years. If it continues to double every 35 years, then in 100 years U.S. real GDP per person will be about
A) 4 times higher than it is now.
B) 8 times higher than it is now.
C) 12 times higher than it is now.
D) 16 times higher than it is now.

Accepted Answer

The answer of Over the past 100 years, U.S. real...

Question 17

In which of the following countries has economic growth been sufficiently strong in recent history to propel that country from being among the poorest in the world to being among the richest in the world?
A) South Korea
B) Senegal
C) India
D) Indonesia

Accepted Answer

South Korea is the best choice as it has achieved high economic growth in recent history, enabling it to move from being one of the poorest countries in the world in the 1960s to being among the richest countries in the world today. Senegal, India, and Indonesia have all experienced economic growth, but they have not undergone the same level of transformation as South Korea.

Question 18

Over the past century in the United States, real GDP per person has grown, on average, by about
A) 1 percent per year.
B) 2 percent per year.
C) 3 percent per year.
D) 5 percent per year.

Accepted Answer

The answer of Over the past century in the United...

Question 19

A country experiencing a growth rate of 8% per year can go from being one of the poorest to one of the richest in how many generations?
A) one
B) two
C) three
D) four

Accepted Answer

The answer of A country experiencing a growth rate of...

Question 20

During the past century the average growth rate of U.S. real GDP per person implies that it doubled, on average, about every
A) 100 years.
B) 70 years.
C) 35 years.
D) 25 years.

Accepted Answer

The answer of During the past century the average growth...

Quiz 7: Production and Growth

A country experiencing a growth rate of 8% per year can go from being one of the poorest to one of the richest in

Over the last century, U.S. real GDP per person grew at a rate of about

Average income has been stagnant for many years in

Which of the following are residents of rich countries likely to have in greater quantities, or better quality, than residents of poor countries?

The average income in a rich country, such as the United States or Japan, is more than

Productivity is the amount of goods and services

The average income in a rich country

In recent decades, average income in some East Asian countries, such as South Korea, Singapore, and Taiwan, has risen about

Which of the following is a good gauge of economic progress?

Average income has been stagnant for many years in

In which of the following countries has economic growth been sufficiently strong in recent history to propel that country from being among the poorest in the world to being among the richest in the world?

Average income has been stagnant for many years in

In some East Asian countries, average income, as measured by real GDP per person, has recently grown at an average annual rate that implies output will double about every

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

In the United States, as measured by real GDP per person, average income is about how many times as high as average income a century ago?

Over the past 100 years, U.S. real GDP per person has doubled about every 35 years. If it continues to double every 35 years, then in 100 years U.S. real GDP per person will be about

In which of the following countries has economic growth been sufficiently strong in recent history to propel that country from being among the poorest in the world to being among the richest in the world?

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

A country experiencing a growth rate of 8% per year can go from being one of the poorest to one of the richest in how many generations?

During the past century the average growth rate of U.S. real GDP per person implies that it doubled, on average, about every