1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.
7. Average income in some East Asian countries, as measured by real GDP per person, has recently grown at an average
annual rate that implies income will double about every
a.
10 years.
b.
15 years.
c.
20 years.
d.
25 years.
8. A country experiencing a growth rate of 12% 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
9. A country experiencing a growth rate of 12% 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 12%.
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 12%.
d.
three generations. However, in the last couple of decades not even China’s growth rate has been this high.
10. In which of the following countries has economic growth been sufficiently high that income would double every ten
years?
a.
India
b.
Mexico
c.
South Korea
d.
Zimbabwe
11. In which of the following countries has economic growth been sufficiently high that income would double every ten
years?
a.
Singapore
b.
Nigeria
c.
India
d.
Indonesia
12. Average income has been stagnant for many years in
a.
Western European counties.
b.
some Asian countries like South Korea and Singapore.
c.
some Sub-Saharan African countries.
d.
All of the above are correct.
13. 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
14. In which of the following countries did real GDP per person fall by about 13% from 2000 to 2014?
a.
India
b.
Singapore
c.
Zimbabwe
d.
None of the above are correct.
15. 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.
16. A nation’s standard of living is determined by
a.
the percentage of its GDP that is accounted for by government purchases.
b.
the quantity of natural resources with which it is endowed.
c.
the productivity of its workers.
d.
factors and events that are beyond the nation’s control.
17. Which of the following is a good measure of economic prosperity?
a.
The level of real GDP
b.
The growth rate of real GDP
c.
The level of nominal GDP
d.
The price level
18. There are large differences in the standard of living
a.
across countries, but not within countries.
b.
within countries over time, but not across countries.
c.
across countries and within countries over time.
d.
across countries, but not in technology or healthcare.
19. Which of the following countries has had the greatest productivity per worker within the last ten years?
a.
Germany
b.
Nigeria
c.
Nicaragua
d.
India