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Chapter 28 Economic Growth Answer Key
Multiple Choice Questions
1.
Economic growth is best defined as an increase in
2.
Real GDP per capita is found by
3.
Real GDP per capita
28-2
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Learning Objective: 28-01 List two ways that economic growth is measured.
Test Bank: I
Topic: Economic Growth
4.
Which of the following best measures improvements in the standard of living of a nation?
5.
If a nation's real GDP increases from 100 billion to 106 billion and its population jumps
from 200 million to 212 million, its real GDP per capita will
6.
For a nation's real GDP per capita to rise during a year,
28-3
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Blooms: Remember
Dif f i c u l ty: 01 Easy
Learning Objective: 28-01 List two ways that economic growth is measured.
Test Bank: I
Topic: Economic Growth
7.
Growth is advantageous to a nation because it
8.
For comparing changes in potential military strength and political preeminence, the most
meaningful measure of economic growth would be changes in
9.
Year
Alta (Real GDP)
Zorn (Real GDP)
Alta (Population)
Zorn (Population)
1
$2,000
$150,000
200
500
2
2,100
152,000
202
505
3
2,200
154,000
210
508
Refer to the table. Between years 1 and 2, real GDP grew by percent in Alta.
10.
Year
Alta (Real GDP)
Zorn (Real GDP)
Alta (Population)
Zorn (Population)
1
$2,000
$150,000
200
500
2
2,100
152,000
202
505
3
2,200
154,000
210
508
Refer to the table. Between years 1 and 2, real GDP per capita grew by approximately
percent in Alta.
28-5
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Learning Objective: 28-01 List two ways that economic growth is measured.
Test Bank: I
Topic: Economic Growth
Type: Table
11.
Year
Alta (Real GDP)
Zorn (Real GDP)
Alta (Population)
Zorn (Population)
1
$2,000
$150,000
200
500
2
2,100
152,000
202
505
3
2,200
154,000
210
50
Refer to the table. Between years 2 and 3,
12.
Year
Alta (Real GDP)
Zorn (Real GDP)
Alta (Population)
Zorn (Population)
1
$2,000
$150,000
200
500
2
2,100
152,000
202
505
3
2,200
154,000
210
508
Refer to the table. Per capita GDP was about
28-6
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
B.
$303 in year 3 in Zorn.
C.
$200 in year 1 in Zorn.
D.
$5 in year 2 in Alta.
AACSB: Knowledge Application
Blooms: Remember
Dif f i c u l ty: 01 Easy
Learning Objective: 28-01 List two ways that economic growth is measured.
Test Bank: I
Topic: Economic Growth
Type: Table
13.
Given the annual rate of economic growth, the "rule of 70" allows one to
14.
The number of years required for real GDP to double can be found by
15.
At an annual growth rate of 7 percent, real GDP will double in about
28-7
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
A. 11½ years.
B.
10 years.
C.
13½ years.
D.
9 years.
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Remember
Dif f i c u l ty: 01 Easy
Learning Objective: 28-01 List two ways that economic growth is measured.
Test Bank: I
Topic: Economic Growth
16.
If a nation's real GDP is growing by 5 percent per year, its real GDP will double in
approximately
17.
If the economy's real GDP doubles in 18 years, we can
18.
Between 1950 and 2015, U.S. real GDP grew at an average annual rate of about
19.
Between 1950 and 2015, U.S. real GDP per capita grew at an average annual rate of
about
20.
Real per capita GDP in the United States in 2015 was approximately
28-9
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Topic: Economic Growth
21.
Under what circumstances do rates of economic growth understate the growth of
economic well-being?
22.
Which of the following statements is most accurate about modern economic growth?
23.
Countries that have experienced modern economic growth have also tended to
28-10
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Blooms: Remember
Dif f i c u l ty: 01 Easy
Learning Objective: 28-02 Define modern economic growth and explain the institutional
structures needed for an economy to experience it.
Test Bank: I
Topic: Modern Economic Growth
24.
The Industrial Revolution and modern economic growth resulted in
25.
Economic historians date the start of the Industrial Revolution around the year 1776,
when James Watt
26.
Real per capita GDP
28-11
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
B.
was much more equal across nations in 1820 than it is today.
C.
has been about 20 times higher in the richer nations than the poorer nations for about
2,000 years.
D.
grows much faster in "leader countries" than in "follower countries."
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Remember
Dif f i c u l ty: 01 Easy
Learning Objective: 28-02 Define modern economic growth and explain the institutional
structures needed for an economy to experience it.
Test Bank: I
Topic: Modern Economic Growth
27.
Which of the following economic regions has experienced the least growth in real GDP
per capita since 1820?
28.
Which of the following economic regions has experienced the most growth in real GDP
per capita since 1820?
28-12
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
structures needed for an economy to experience it.
Test Bank: I
Topic: Modern Economic Growth
29.
Which of the following statements is most accurate about the prospects for poorer
("follower") countries catching up with richer ("leader") countries?
30.
In 1998, living standards in the United States were nearly times higher than those in
Africa.
31.
Economic growth rates in follower countries
28-13
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written consent of McGraw-Hill Education.
B.
tend to exceed those in leader countries because followers can cheaply adopt the new
technologies that leaders developed at relatively high costs.
C.
will never bring real GDP per capita up to the same levels as in leader countries, even if
follower growth rates are greater than those in leader countries.
D.
typically average about 2 percent per year.
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Remember
Dif f i c u l ty: 01 Easy
Learning Objective: 28-02 Define modern economic growth and explain the institutional
structures needed for an economy to experience it.
Test Bank: I
Topic: Modern Economic Growth
32.
Real GDP per capita in the United States (as of 2010) exceeds that of France primarily
because
33.
Based on the annual number of hours worked per capita, labor supply in the United
States exceeds that of France by about percent.
28-14
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Blooms: Remember
Dif f i c u l ty: 01 Easy
Learning Objective: 28-02 Define modern economic growth and explain the institutional
structures needed for an economy to experience it.
Test Bank: I
Topic: Modern Economic Growth
34.
Strong property rights are important for modern economic growth because
35.
Which of the following institutional structures is most likely to promote growth?
36.
Which of the following institutional arrangements is most likely to promote growth?
28-15
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
C.
unrestricted trade between nations
D. all of these
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Remember
Dif f i c u l ty: 01 Easy
Learning Objective: 28-02 Define modern economic growth and explain the institutional
structures needed for an economy to experience it.
Test Bank: I
Topic: Modern Economic Growth
37.
A competitive market system
38.
Free trade
28-16
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Test Bank: I
Topic: Modern Economic Growth
39.
1.
Improvements in technology.
2.
Increases in the supply (stock) of capital goods.
3.
Purchases of expanding output.
4.
Obtaining the optimal combination of goods, each at least-cost production.
5.
Increases in the quantity and quality of natural resources.
6.
Increases in the quantity and quality of human resources.
Use the accompanying list to answer the following question. As distinct from the demand
and efficiency factors of economic growth, the supply factors of economic growth are
40.
1.
Improvements in technology.
2.
Increases in the supply (stock) of capital goods.
3.
Purchases of expanding output.
4.
Obtaining the optimal combination of goods, each at least-cost production.
5.
Increases in the quantity and quality of natural resources.
6.
Increases in the quantity and quality of human resources.
Use the accompanying list to answer the following question. As distinct from the supply
factors and demand factor of economic growth, the efficiency factor(s) of economic growth
is (are)
41.
1.
Improvements in technology.
2.
Increases in the supply (stock) of capital goods.
3.
Purchases of expanding output.
4.
Obtaining the optimal combination of goods, each at least-cost production.
5.
Increases in the quantity and quality of natural resources.
6.
Increases in the quantity and quality of human resources.
Use the accompanying list to answer the following question. As distinct from the supply
factors and demand factor of economic growth, the efficiency factor(s) of economic growth
is (are)
28-18
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Blooms: Remember
Dif f i c u l ty: 01 Easy
Learning Objective: 28-03 Identify the general supply, demand, and efficiency forces that
give rise to economic growth.
Test Bank: I
Topic: Determinants of Growth
42.
1.
Improvements in technology.
2.
Increases in the supply (stock) of capital goods.
3.
Purchases of expanding output.
4.
Obtaining the optimal combination of goods, each at least-cost production.
5.
Increases in the quantity and quality of natural resources.
6.
Increases in the quantity and quality of human resources.
Which set of items in the accompanying list would shift an economy's production
possibilities curve outward?
43.
1.
Improvements in technology.
2.
Increases in the supply (stock) of capital goods.
3.
Purchases of expanding output.
4.
Obtaining the optimal combination of goods, each at least-cost production.
5.
Increases in the quantity and quality of natural resources.
6.
Increases in the quantity and quality of human resources.
Which set of items in the accompanying list would move an economy from a point inside its
production possibilities curve to a point on its production possibilities curve?
44.
Which of the following is not a supply factor in economic growth?
45.
The achievement of full employment through time will
28-20
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written consent of McGraw-Hill Education.
D. have no impact on the rate of economic growth.
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
Blooms: Remember
Dif f i c u l ty: 01 Easy
Learning Objective: 28-03 Identify the general supply, demand, and efficiency forces that
give rise to economic growth.
Test Bank: I
Topic: Determinants of Growth
46.
Economic growth can be portrayed as
47.
Suppose that an economy's labor productivity and total worker-hours each grew by 3
percent between year 1 and year 2. We could conclude that this economy's
