Macro 1
- 1.
Economic growth is best defined as an increase in:
- A.
Either real GDP or real GDP per capita.
- B.
Nominal GDP
- C.
Total consumption expenditures
- D.
Wealth in the economy
Correct Answer
A. Either real GDP or real GDP per capita. -
- 2.
Real GDP per capita:
- A.
Cannot grow more rapidly than real GDP.
- B.
Cannot grow more slowly than real GDP.
- C.
Necessarily grows more rapidly than real GDP.
- D.
Can grow either more slowly or more rapidly than real GDP.
Correct Answer
D. Can grow either more slowly or more rapidly than real GDP. -
- 3.
Real GDP per capita is found by:
- A.
Adding real GDP and population.
- B.
Subtracting population from real GDP.
- C.
Dividing real GDP by population.
- D.
Dividing population by real GDP.
Correct Answer
C. Dividing real GDP by population. -
- 4.
Which of the following best measures improvements in the standard of living of a nation?
- A.
Growth of nominal GDP.
- B.
Growth of real GDP.
- C.
Growth of real GDP per capita
- D.
Growth of national income
Correct Answer
C. Growth of real GDP per capita -
- 5.
If a nation's real GDP increases from 100 billion to 106 billion and its population jumps from 200 million to 212 million, it's real GDP per capita will:
- A.
Remain constant.
- B.
Fall by 6 percent.
- C.
Rise by 6 percent
- D.
Fall by 12 percent.
Correct Answer
A. Remain constant. -
- 6.
For a nation's real GDP per capita to rise during a year:
- A.
Consumption spending must increase.
- B.
Real GDP must increase more rapidly than population.
- C.
Population must increase more rapidly than real GDP.
- D.
Investment spending must increase.
Correct Answer
B. Real GDP must increase more rapidly than population. -
- 7.
Growth is advantageous to a nation because it:
- A.
Promotes faster population growth.
- B.
Lessens the burden of scarcity.
- C.
Eliminates the economizing problem.
- D.
Slows the growth of wants.
Correct Answer
B. Lessens the burden of scarcity. -
- 8.
For comparing changes in potential military strength and political preeminence, the most meaningful measure of economic growth would be:
- A.
Changes in total nominal output.
- B.
Changes in total real output
- C.
Changes in per capita output.
- D.
Changes in per family output
Correct Answer
B. Changes in total real output -
- 9.
Given the annual rate of economic growth, the "rule of 70" allows one to:
- A.
Determine the accompanying rate of inflation.
- B.
Calculate the size of GDP gap.
- C.
Calculate the number of years required for real GDP to double.
- D.
Determine the growth rate of per capita GDP.
Correct Answer
C. Calculate the number of years required for real GDP to double. -
- 10.
The number of years required for real GDP to double can be found by:
- A.
Dividing the annual growth rate by 0.07
- B.
Multiplying the annual growth rate by 70.
- C.
Dividing 70 by the annual growth rate.
- D.
Adding 14 to annual growth rate.
Correct Answer
C. Dividing 70 by the annual growth rate. -
- 11.
At an annual growth rate of 4 percent, real GDP will double in about:
- A.
17.5 years.
- B.
20 years
- C.
13.5 years
- D.
15 years
Correct Answer
A. 17.5 years. -
- 12.
At an annual growth rate of 7 percent, real GDP will double in about:
- A.
11.5 years
- B.
10 years
- C.
13.5 years
- D.
9 years
Correct Answer
B. 10 years -
- 13.
If a nation's real GDP is growing by 5 percent per year, its real GDP will double in approximately:
- A.
22 years
- B.
20 years
- C.
14 years
- D.
8 years
Correct Answer
C. 14 years -
- 14.
If the economy's real GDP doubles in 18 years, we can:
- A.
Not say anything about the average annual rate of growth.
- B.
Conclude that its average annual rate of growth is about 5.5 percent.
- C.
Conclude that its average annual rate of growth is about 2 percent.
- D.
Conclude that its average annual rate of growth is about 4 percent
Correct Answer
D. Conclude that its average annual rate of growth is about 4 percent -
- 15.
About _____ of US economic growth comes from improved productivity (as opposed to added inputs.)
- A.
1/4
- B.
1/3
- C.
1/2
- D.
2/3
Correct Answer
D. 2/3 -
- 16.
Between 1950 and 2002, US real GDP grew at an average annual rate of about:
- A.
1.3%
- B.
4.2%
- C.
3.5%
- D.
2.1%
Correct Answer
D. 2.1% -
- 17.
Recurring upswings and downswings in an economy's real GDP over time are called:
- A.
Recessions.
- B.
Business cycles.
- C.
Output yo-yos.
- D.
Total product oscillations.
Correct Answer
B. Business cycles. -
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Mar 18, 2022Quiz Edited by
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Mar 10, 2012Quiz Created by
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