Chapter 08 – Economic Growth
1. Which of the following is a measure of economic growth that is most useful for measuring
political preeminence?
2. Which of the following is a measure of economic growth that is most useful for comparing
living standards?
Chapter 08 – Economic Growth
3. A nation’s real GDP was $250 billion in 2009 and $265 billion in 2010. Its population was
120 million in 2009 and 125 million in 2010. What is its real GDP growth rate in 2010?
4. A nation’s real GDP was $250 billion in 2009 and $265 billion in 2010. Its population was
120 million in 2009 and 125 million in 2010. What is its real GDP per capita in 2010?
5. A nation’s real GDP was $250 billion in 2009 and $265 billion in 2010. Its population was
122 million in 2009 and 125 million in 2010. What is the growth rate of real GDP per capita
in 2010?
Chapter 08 – Economic Growth
6. Nation A’s real GDP was $520 billion in 2009 and $550 billion in 2010. Its population was
150 million in 2009 and 155 million in 2010. On the other hand, Nation B’s real GDP was
$200 billion in 2009 and $210 billion in 2010; and its population was 53 million in 2009 and
55 million in 2010. Which of the following statements is true?
7. Nation A’s real GDP was $520 billion in 2009 and $550 billion in 2010. Its population was
150 million in 2009 and 155 million in 2010. On the other hand, Nation B’s real GDP was
$200 billion in 2009 and $210 billion in 2010; and its population was 53 million in 2009 and
55 million in 2010. Which of the following statements is true?
Chapter 08 – Economic Growth
8. Nation A’s real GDP was $520 billion in 2009 and $550 billion in 2010. Its population was
150 million in 2009 and 155 million in 2010. On the other hand, Nation B’s real GDP was
$200 billion in 2009 and $210 billion in 2010; and its population was 53 million in 2009 and
55 million in 2010. Which of the following statements is true?
9. The “rule of 70” is a formula for determining the approximate number of:
10. A nation’s average annual real GDP growth rate is 2.5%. Based on the “rule of 70”, the
approximate number of years that it would take for this nation’s real GDP to double is:
Chapter 08 – Economic Growth
11. Consider two scenarios for a nation’s economic growth. Scenario A has real GDP growing
at an average annual rate of 3.5%; scenario B has an average annual growth of 4.5%. The
nation’s real GDP would double in about:
12. Economic growth in the U.S. since 1950 has been characterized by:
13. At what average annual rate has real GDP and real GDP per capita, respectively, grown
from 1950 to 2009?
Chapter 08 – Economic Growth
14. The following factors tend to make the real GDP growth rate understate the growth of
economic well-being, except:
15. Economic historians identify which item as a major factor that started the Industrial
Revolution in Britain?
16. Which of the following does not correctly characterize modern economic growth?
Chapter 08 – Economic Growth
8-7
17. In the modern economic growth process, it is typical to find that:
18. Growth-promoting institutional structures include the following, except:
19. Patents and copyrights foster the flow of:
Chapter 08 – Economic Growth
20. Efficient financial institutions foster the flow of:
21. Supply factors in economic growth include the following, except:
22. Which of the following is best considered a demand factor in economic growth?
Chapter 08 – Economic Growth
23. Which of the following is a demand factor in economic growth?
24. Which of the following is the so-called efficiency factor of economic growth?
25. Economic growth can best be portrayed as a:
Chapter 08 – Economic Growth
26. Assume a nation’s current production possibilities are represented by the curve AB in the
above diagram. Economic growth would best be indicated by a:
27. Refer to the above diagram. If the production possibilities curve of an economy shifts
from AB to CD, it is most likely the result of what factor affecting economic growth?
Chapter 08 – Economic Growth
28. Refer to the above diagram. If the production possibilities of an economy are shown by
curve AB but the economy is operating at point 4, the reasons are most likely to be because
of:
29. Refer to the above diagram. Which of the following is the most likely cause for a shift in
the production possibilities curve from AB to CD?
30. Suppose that an economy is initially operating at a point on its PPC. If it then experiences
an expansion in its production capacity, but its total spending does not rise as fast as its
capacity, the economy will end up:
Chapter 08 – Economic Growth
31. Refer to the above graph. If the production possibilities curve of an economy shifts from
AB to CD, it is most likely caused by which of the following factors?
32. Refer to the above graph. If the production possibilities curve for an economy is at CD but
the economy is operating at point X, the reasons are most likely to be because of:
Chapter 08 – Economic Growth
33. Real GDP or total output in any year is equal to:
34. Assume that an economy has 1500 workers, each working 2000 hours per year. If the
average real output per worker-hour is $20, then total output or real GDP will be:
35. If 40,000 worker-hours produced a total output of $600,000 in an economy, the labor
productivity is:
Chapter 08 – Economic Growth
36. Society can increase its output and income by increasing basically one or both of two
factors:
37. A nation’s real GDP will increase by increasing the following, except:
38. The number of worker-hours available in an economy is determined by the following,
except:
Chapter 08 – Economic Growth
8-15
39. Which of the following will NOT increase the average productivity of labor?
40. The size of the labor force depends on the size of the working-age population and the:
The table below shows the quantity of labor (measured in hours) and the productivity of labor
(measured in real GDP per hour) in a hypothetical economy in three different years.
Chapter 08 – Economic Growth
41. Refer to the above table. In Year 2, the economy’s real GDP was:
42. Refer to the above table. Between Year 1 and Year 2, real GDP increased by:
43. Refer to the above table. Between Year 2 and Year 3, real GDP increased by:
Chapter 08 – Economic Growth
44. In the periods 1953-73 and 1973-95, U.S. real GDP grew at the average annual rates of
about:
45. In the periods 1995-2001 and 2001-2007, U.S. real GDP grew at the average annual rates
of about:
46. In the U.S. in the last 50 years or so, we saw the following trends, except:
Chapter 08 – Economic Growth
47. About what percentage of the growth in real output in the United States from 2001 to
2007 was due to increases in labor productivity?
48. Which of the following factors has been the dominant source of economic growth in the
U.S. (except in 1973-1995)?
49. Which of the following factors is projected to be the dominant source of economic growth
in the U.S. from now until 2020?
Chapter 08 – Economic Growth
50. The factor accounting for the largest increase in the productivity of labor in the United
States has been:
51. Technological advances that contribute to economic growth include the following,
except:
52. Labor productivity can only increase if: