Chapter 08 – Economic Growth
1. Economic growth is best defined as an increase in:
2. Real GDP per capita is found by:
Chapter 08 – Economic Growth
3. Real GDP per capita:
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:
Chapter 08 – Economic Growth
6. For a nation’s real GDP per capita to rise during a year:
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:
Chapter 08 – Economic Growth
9. Refer to the above table. Between years 1 and 2, real GDP grew by __________ percent in
Alta.
10. Refer to the above table. Between years 1 and 2, real GDP per capita grew by
approximately __________ percent in Alta.
Chapter 08 – Economic Growth
11. Refer to the above table. Between years 2 and 3:
12. Refer to the above table. Per capita GDP was about:
13. Given the annual rate of economic growth, the “rule of 70” allows one to:
Chapter 08 – Economic Growth
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:
16. If a nation’s real GDP is growing by 5 percent per year, its real GDP will double in
approximately:
Chapter 08 – Economic Growth
17. If the economy’s real GDP doubles in 18 years, we can:
18. Between 1950 and 2009, U.S. real GDP grew at an average annual rate of about:
19. Between 1950 and 2009, U.S. real GDP per capita grew at an average annual rate of
about:
Chapter 08 – Economic Growth
20. Real Per Capita GDP in the United States in 2009 was approximately:
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?
Chapter 08 – Economic Growth
23. Countries that have experienced modern economic growth have also tended to:
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:
Chapter 08 – Economic Growth
26. Real per capita GDP:
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?
Chapter 08 – 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. As of 1998, living standards in the United States were nearly ______ times higher than
those in Africa.
Chapter 08 – Economic Growth
31. Economic growth rates in follower countries:
32. Real GDP per capita in the United States (as of 2007) exceeds that of France primarily
because:
Chapter 08 – Economic Growth
33. Based on the annual number of hours worked per capita, labor supply in the United States
exceeds that of France by about _______ percent.
34. Strong property rights are important for modern economic growth because:
35. Which of the following institutional structures is most likely to promote growth?
Chapter 08 – Economic Growth
36. Which of the following institutional arrangements is most likely to promote growth?
37. A competitive market system:
38. Free trade:
Chapter 08 – Economic Growth
Use the list below to answer the following questions:
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
39. Refer to the above list. As distinct from the demand and efficiency factors of economic
growth, the supply factors of economic growth are:
40. Refer to the above list. As distinct from the supply factors and efficiency factor of
economic growth, the demand factor(s) of economic growth is (are):
Chapter 08 – Economic Growth
41. Refer to the above list. As distinct from the supply factors and demand factor of economic
growth, the efficiency factor(s) of economic growth is (are):
42. Which set of items in the above list would shift an economy’s production possibilities
curve outward?
43. Which set of items in the above list would move an economy from a point inside its
production possibilities curve to a point on its production possibilities curve?
Chapter 08 – Economic Growth
44. Which of the following is not a supply factor in economic growth?
45. The achievement of full employment through time will:
46. Economic growth can be portrayed as:
Chapter 08 – Economic Growth
47. Suppose that an economy’s labor productivity and total worker-hours each grew by 3
48. Suppose that an economy’s labor productivity and total worker-hours each grew by 4
percent between year 1 and year 2. We could conclude that this economy’s:
49. Suppose that an economy’s labor productivity fell by 3 percent and its total worker-hours
remained constant between year 1 and year 2. We could conclude that this economy’s:
Chapter 08 – Economic Growth
50. Refer to the above graph. Growth of production capacity is shown by the:
51. Refer to the above graph. An increase in an economy’s labor productivity would:
Chapter 08 – Economic Growth
52. Refer to the above graph. An increase in the economy’s human capital would:
53. Refer to the above diagram. Realized economic growth is best represented by a: