1. A nation’s standard of living is best measured by its
a.
real GDP.
b.
real GDP per person.
c.
nominal GDP.
d.
nominal GDP per person.
2. Which of the following can be measured by the level of real GDP per person?
a.
b.
c.
d.
3. The level of real GDP person
a.
differs widely across countries, but the growth rate of real GDP per person is similar across countries.
b.
is very similar across countries, but the growth rate of real GDP per person differs widely across countries.
c.
and the growth rate of real GDP per person are similar across countries.
d.
and the growth rate of real GDP per person vary widely across countries.
4. As of 2014, using real GDP per person as a measure, we would classify
a.
the United States and Mexico as advanced economies and Bangladesh as a middle-income country.
b.
Canada as an advanced economy, Mexico as a middle-income country, and Pakistan as a poor country.
c.
Japan and India as advanced economies and Mexico as a poor country.
d.
Japan as an advanced economy, the United Kingdom as a middle-income country, and Argentina as a poor
country.
5. Measured in 2014 dollars, real GDP per person in the United States in 2014 was about 10 times that in
a.
China.
b.
India.
c.
Indonesia.
d.
Pakistan.
6. Which of the following statements is correct? In 2014,
a.
real income per person in the U.S. was about 4 times that in China.
b.
real income per person in China was more than 2 times that in India.
c.
the typical resident of India had less real income than the typical resident of England in 1870.
d.
All of the above are correct.
7. In 2014, real GDP per person in Bangladesh was
a.
about 3 times as high as it was in the U.S. in 1870.
b.
about twice as high as it was in the U.S. in 1870.
c.
about the same as it was in the U.S. in 1870.
d.
less than it was in the U.S. in 1870.
8. In 2014, the typical Bangladeshi had about
a.
more than half the real income of a typical American a century ago.
b.
the same real income of a typical American a century ago.
c.
2 times as much real income as that of a typical American a century ago.
d.
4 times as much real income as that of a typical American a century ago.
9. Measured in 2014 dollars, real GDP per person in the United States in 2014 was about
a.
$37,000.
b.
$56,000.
c.
$57,000.
d.
$67,000.
10. Which of the following countries had the highest level of real GDP per person in 2014?
a.
Germany
b.
Canada
c.
United States
d.
Japan
11. Which of the following countries had the lowest level of real GDP per person in 2014?
a.
Bangladesh
b.
Indonesia
c.
Mexico
d.
China
12. Which of the following measures how the level of well-being in a country has changed over time?
a.
level of nominal GDP per person.
b.
growth rate of nominal GDP.
c.
growth rate of real GDP.
d.
growth rate of real GDP per person.
13. Which of the following is correct?
a.
Countries with the highest growth rates over the last 120 years are the ones that had the highest level of real
GDP 120 years ago.
b.
Most countries have had little fluctuation around their average growth rates during the past 120 years.
c.
The ranking of countries by income changes little over time.
d.
Even though Japan had a higher growth rate of real GDP per person than the U.S. over the last 120 years, it’s
level of real GDP per person is less than that of the U.S.
14. Which of the following is not correct?
a.
Across countries there are large differences in the average income per person. These differences are reflected
in large differences in the quality of life.
b.
With a growth rate of about 2 percent per year, average income per person doubles about every 60 years.
c.
The ranking of countries by average income changes substantially over time.
d.
In some countries real income per person has changed very little over many years.
15. Which of the following statements is correct?
a.
In the late 1800s, real GDP per person was higher in the United Kingdom than in the United States.
b.
In 2014, real GDP per person was higher in the United Kingdom than in the United States.
c.
The average annual growth rate of real GDP was higher in the United Kingdom than in the United States
between the late 1800s and 2014.
d.
All of the above are correct.
16. Countries that have lower levels of real GDP per person than the United States
a.
tend to have growth rates that are higher than that of the United States.
b.
tend to have growth rates that are about the same as that of the United States.
c.
tend to have growth rates that are lower than that of the United States.
d.
in some cases have growth rates that are higher than that of the United States and in other cases lower than that
of the United States.
17. Country A experienced a growth rate of real GDP per person of 2.5 percent per year throughout the 1900’s. In view of
other countries’ experiences during this time country A’s growth was
a.
exceptionally high.
b.
moderately high.
c.
moderately low.
d.
exceptionally low.
18. Country A experienced a growth rate of real GDP per person of 0.5 percent per year throughout the 1900’s. In view of
other countries’ experiences, country A’s growth was
a.
exceptionally high.
b.
moderately high.
c.
moderately low.
d.
exceptionally low.
19. Countries that grew the fastest over the last 100 or so years had average growth rates of real income per person of
about
a.
1.5 percent per year.
b.
2.0 percent per year.
c.
2.5 percent per year.
d.
3.0 percent per year.
20. Among the following countries, which one has the highest level of real GDP per person but the lowest growth rate of
real GDP per person over a very long period of time?
a.
the United Kingdom
b.
Mexico
c.
Argentina
d.
China
21. Which of the following nations experienced average rates of economic growth of less than 2 percent over the last 100
years or so?
a.
Bangladesh
b.
Pakistan
c.
United Kingdom
d.
All of the above are correct.
22. Which of the following nations experienced average rates of economic growth of a bit under 2% over the last 100
years or so?
a.
Mexico
b.
Brazil
c.
the United States
d.
All of the above are correct.
23. Over the period 1900-2014, which of the following countries experienced the highest average annual growth rate of
real GDP per person?
a.
Brazil
b.
China
c.
India
d.
Pakistan
24. Among the following countries, which one has the highest growth rate of real GDP per person over about the last 100
years?
a.
Argentina
b.
Mexico
c.
the United Kingdom
d.
the United States
25. Which of the following countries had the highest growth rate over about the last 100 years?
a.
Japan
b.
China
c.
Germany
d.
United States
26. Which country has had a higher growth rate than the US over about the last 120 years?
a.
Argentina
b.
Germany
c.
the United Kingdom
d.
None of the above is correct.
27. Which country has had a higher growth rate than the U.S. over about the last 120 years?
a.
India
b.
Mexico
c.
United Kingdom
d.
Pakistan
28. Which list contains, in this order, a country whose real GDP per person grew faster and one whose real GDP per
person grew slower than real GDP per person in the U.S. over about the last 100 years?
a.
Bangladesh, India
b.
China, United Kingdom
c.
Japan, Brazil
d.
Pakistan, Mexico
29. Which of the following pairs of countries experienced approximately the same rate of growth of real income per
person over about the last 120 years?
a.
Germany and Japan
b.
Indonesia and Bangladesh
c.
the United States and Argentina
d.
Mexico and Pakistan
30. Of the following countries, which grew most slowly, in terms of real GDP per person, over about the last 120 years?
a.
Brazil
b.
Mexico
c.
China
d.
United States
31. Which of these countries’ growth rates of real GDP per person have exceeded the United States’ growth rate of real
GDP per person over the last century?
a.
Canada and China
b.
China and India
c.
Germany and India
d.
Germany and Pakistan
32. Which of the following is indicated by the data on real income per person for various countries over the past 100 or so
years?
a.
If, in a relatively poor country, real income per person had grown by 3.5 percent per year for the last 100
years, it would be a relatively rich country today.
b.
Rich countries became richer and poor countries became poorer.
c.
In the United States, real income per person today is about four times as high as it was 120 years ago.
d.
All of the above are correct.
33. Japan is
a.
an advanced economy, and over the past century its rate of economic growth has been higher than that of the
United States.
b.
an advanced economy, and over the past century its rate of economic growth has been lower than that of the
United States.
c.
a middle-income country, and over the past century its rate of economic growth has been higher than that of
the United States.
d.
a middle-income country, and over the past century its rate of economic growth has been lower than that of the
United States.
34. The United Kingdom is
a.
an advanced economy, and over the past century its rate of economic growth has been higher than that of the
United States.
b.
an advanced economy, and over the past century its rate of economic growth has been lower than that of the
United States.
c.
a middle-income country, and over the past century its rate of economic growth has been higher than that of
the United States.
d.
a middle-income country, and over the past century its rate of economic growth has been lower than that of the
United States.
35. Mexico is
a.
a poor country, and over the past century its rate of economic growth has been higher than that of the United
States.
b.
a poor country, and over the past century its rate of economic growth has been lower than that of the United
States.
c.
a middle-income country, and over the past century its rate of economic growth has been higher than that of
the United States.
d.
a middle-income country, and over the past century its rate of economic growth has been lower than that of the
United States.
36. In 1870, the richest country in the world was
a.
Germany.
b.
Japan
c.
the United Kingdom.
d.
the United States.
37. Which of the following statements is correct?
a.
In 1870, real income per person was higher in the United States than in any other country at that time.
b.
Over about the last 100 years India experienced significantly higher growth of real income per person than did
the United States.
c.
Over about the last 100 years the United States experienced significantly higher growth of real income per
person than did Japan.
d.
None of the above are correct.
38. Which of the following is correct?
a.
Over the last 100 years Japan had a higher average growth rate than the United States. It follows that, today,
the standard of living in Japan is higher than in the United States.
b.
The typical person in Bangladesh today has about twice the real income of a typical American 100 years ago.
c.
The typical citizen of China today has about one-half as much real income as the typical citizen of America
today.
d.
None of the above is correct.
39. Which of the following correctly ranks the three countries, from highest to lowest, for percentage of college-age
children in school?
a.
United Kingdom, Mali, Mexico.
b.
Mexico, Mali, United Kingdom.
c.
United Kingdom, Mexico, Mali.
d.
Mali, Mexico, United Kingdom.
40. One can argue that the average American today is “richer” than the richest American 100 years ago, given that 100
years ago,
a.
people’s nominal incomes were, on average, much lower than they are today.
b.
personal fortunes were not accurately measured.
c.
many of the goods and services that we now take for granted were not available.
d.
international trade had not yet begun to flourish.
41. Last year real GDP per person in the imaginary nation of Olympus was 4,250. The year before it was 4,100. By about
what percentage did Olympian real GDP per person grow during the period?
a.
1.6 percent
b.
2.5 percent
c.
3.7 percent
d.
6 percent
42. Last year real GDP in the imaginary nation of Oceania was 561.0 billion and the population was 2.2 million. The year
before, real GDP was 500.0 billion and the population was 2.0 million. What was the growth rate of real GDP per person
during the year?
a.
12 percent
b.
10 percent
c.
4 percent
d.
2 percent
43. Last year real GDP in the imaginary nation of Populia was 907.5 billion and the population was 3.3 million. The year
before real GDP was 750 billion and the population was 3 million. What was the growth rate of real GDP per person
during the year?
a.
10 percent
b.
14 percent
c.
17 percent
d.
21 percent
44. Last year the imaginary nation of Freedonia had a population of 2,800 and real GDP of 16,800,000. This year it had a
population of 2,700 and real GDP of 15,390,000. About what was the growth rate of real GDP per person between last
year and this year?
a.
-5.3 percent
b.
-5 percent
c.
5 percent
d.
5.3 percent
45. In 2012, the imaginary nation of Kanmiw had a population of 8,044 and real GDP of 36,198,000. In 2013 it had a
population of 7,800 and real GDP of 35,880,000. What was the growth rate of real GDP per person in Kanmiw between
2012 and 2013?
a.
-2.2 percent
b.
-0.7 percent
c.
2.2 percent
d.
4.5 percent
46. In 2011, the imaginary nation of Maconia had a population of 8,200 and real GDP of 210,500. Maconia had 5%
growth in real GDP per person. In 2012 it had a population of 8,400. To the nearest dollar what was real GDP in Maconia
in 2012?
a.
216,815
b.
221,025
c.
226,416
d.
None of the above is correct.
47. In 2010, the imaginary nation of Bovina had a population of 5,000 and real GDP of 500,000. In 2011 it had a
population of 5,100 and real GDP of 520,200. During 2011 real GDP per person in Bovina grew by
a.
2 percent, which is high compared to average U.S. growth over the last one-hundred years.
b.
2 percent, which is about the same as average U.S. growth over the last one-hundred years.
c.
4 percent, which is high compared to average U.S. growth over the last one-hundred years.
d.
4 percent, which is about the same as average U.S. growth over the last one-hundred years.
48. In 2010, the imaginary nation of Bovina had a population of 5,000 and real GDP of 600,000. In 2011 it had a
population of 5,200 and real GDP of 636,480. During 2011 real GDP per person in Bovina grew by
a.
2 percent, which is high compared to average U.S. growth over the last one-hundred years.
b.
2 percent, which is about the same as average U.S. growth over the last one-hundred years.
c.
4 percent, which is high compared to average U.S. growth over the last one-hundred years.
d.
4 percent, which is about the same as average U.S. growth over the last one-hundred years.
49. In 2010, the imaginary nation of Mainland had a population of 6,000 and real GDP of 120,000. In 2011 the population
was 6,200 and real GDP of 128,960. Over the year in question, real GDP per person in Mainland grew by
a.
2 percent, which is high compared to average U.S. growth over the last one-hundred years.
b.
2 percent, which is about the same as average U.S. growth over the last one-hundred years.
c.
4 percent, which is high compared to average U.S. growth over the last one-hundred years.
d.
4 percent, which is about the same as average U.S. growth over the last one-hundred years.
50. In 2009, the imaginary nation of Mainland had a population of 7,000 and real GDP of 210,000. In 2010 the population
was 7,300 and real GDP of 223,380. Over the year in question, real GDP per person in Mainland grew by
a.
2 percent, which is high compared to average U.S. growth over the last one-hundred years.
b.
2 percent, which is about the same as average U.S. growth over the last one-hundred years.
c.
4 percent, which is high compared to average U.S. growth over the last one-hundred years.
d.
4 percent, which is about the same as average U.S. growth over the last one-hundred years.
51. Last year the imaginary nation of Panglossia had real GDP of 400 billion. This year it had real GDP of 472.5 billion.
Which of the following changes in population is consistent with a 5 percent growth rate of real GDP per person over the
last year?
a.
The population decreased from 75 million to 72 million.
b.
The population decreased from 60 million to 50 million.
c.
The population increased from 70 million to 80 million.
d.
The population increased from 80 million to 90 million.
52. In 2012, the imaginary nation of Dorados had a population of 8,000 and real GDP of 3,000,000. During the year its
real GDP grew by about 2.9%. Which of the following sets of growth rates is consistent with this growth in real GDP?
a.
2% population growth and 6% real GDP growth
b.
6% population growth and 2% real GDP growth
c.
4% population growth and 7% real GDP growth
d.
7% population growth and 4% real GDP growth
53. In 2012, the imaginary nation of Platland had a population of 10,000 and real GDP of 42,000,000. During the year its
real GDP per person grew by about 1.94%. Which of the following sets of growth rates is consistent with this growth in
real GDP per person?
a.
3% population growth and 4% real GDP growth
b.
3% population growth and 5% real GDP growth
c.
6% population growth and 4% real GDP growth
d.
6% population growth and 5% real GDP growth
54. Which of the following pairs of terms refer to the same thing?
a.
“capital” and “physical capital”
b.
“technological knowledge” and “human capital”
c.
“standard of living” and “human capital”
d.
“standard of living” and “productivity”
55. If real income per person was $47,210 in the U.S. in 2010, and $55,860 in 2014, what was the annual growth rate over
this time period?
a.
4.29 percent per year
b.
1.83 percent per year
c.
8.45 percent per year
d.
1.18 percent per year
56. The rate of real economic growth
a.
is underestimated using measures of income growth.
b.
is overestimated using measures of income growth.
c.
is underestimated using measures of technological growth.
d.
is overestimated using measures of technological growth.
57. Which of the following is higher in Mali than in the United Kingdom?
a.
Modern sanitation access
b.
Income per person
c.
Child mortality
d.
Percent of the population enrolled in college