61) Graphically, economic growth is represented as
A) a movement along the production possibilities curve.
B) a movement from a point inside the production possibilities curve to a point on the curve itself.
C) an inward shift of the production possibilities curve.
D) an outward shift of the production possibilities curve.
62) One of the problems with the definition of economic growth is that
A) it overstates economic growth because it does not account for leisure time.
B) it does not account for the distribution of income.
C) it overstates economic growth because it does not account for the reduction in work time.
D) it understates economic growth because it does not account for the reduction in work time.
63) Economic growth is
A) an increase in the per person real production in a nation.
B) an increase in stock market values.
C) an increase in real estate values.
D) an increase in the number of people employed in agriculture.
64) The variable used to measure economic growth is
A) the growth of the money supply.
B) the trade surplus.
C) the growth in per capita real GDP.
D) the number of new jobs created.
65) Why do very small differences in annual growth rates amount to big differences in the degree of long-term economic growth?
A) Because the faster-growing countries gain a political advantage over poorer countries, and use that advantage for their economic gain.
B) Because the annual growth rate is compounded over time.
C) Because the slower-growing countries save too much.
D) Because the slower-growing countries don't export enough.
66) An outward shift of the production possibilities curve demonstrates
A) a recession.
B) an increased rate of inflation.
C) economic growth.
D) a cyclical shock.
67) Economic growth is defined as
A) an increase in the satisfaction of all people within a country.
B) an increase in per capita real GDP measured by its rate of change per year.
C) any increase in per capita nominal GDP measured by its rate of change per year.
D) an increase in the supply of money measured by its rate of change per year.
68) According to the World Bank and the International Monetary Fund, which of the following countries has shown the greatest rate of economic growth in the past two decades?
C) United States
69) Which of the following would typically be considered a cost of economic growth?
A) increased illiteracy
B) decreased levels of health
C) increased poverty
D) urban congestion
70) A small increase in the annual rate of economic growth can lead to a larger increase in growth over time due to the effects of
A) the money supply.
C) regression towards the mean.