Problem 1
If real GDP grows at 7 percent per year, then real GDP will double in approximately______years. a. 70 b. 14 c. 10 d. 7
Problem 3
True or False: Countries that currently have low real GDPs per capita are destined to always have lower living standards than countries that currently have high real GDPs per capita.
Problem 4
Identify each of the following situations as something that either promotes growth or retards growth. a. Increasing corruption allows government officials to steal people's homes. b. A nation introduces patent laws for the first time. c. A court order shuts down all banks permanently. d. A poor country extends free public schooling from 8 years to 12 years. e. A nation adopts a free-trade policy. f. A formerly communist country adopts free markets.
Problem 5
Real GDP equals _________ times _________. a. Average hours of work; quantity of capital. b. Average hours of work; allocative efficiency. c. Labor input; labor productivity. d. Natural resources; improvements in technology.
Problem 6
Suppose that just by doubling the amount of output that it produces each year, a firm's per-unit production costs fall by 30 percent. This is an example of: a. Economies of scale. b. Improved resource allocation. c. Technological advance. d. The demand factor.
Problem 8
Identify the following arguments about economic growth as being either anti- growth or pro-growth. a. Growth means worker burnout and frantic schedules. b. Rising incomes allow people to buy more education, medical care, and recreation. c. The Earth has only finite amounts of natural resources. d. We still have poverty, homelessness, and discrimination even in the richest countries. e. Richer countries spend more money protecting the environment. f. Natural resource prices have fallen rather than increased over time.
