71) The definition of economic growth is the annual percentage
A) increase in the per capita real GDP.
B) increase in the per capita nominal GDP.
C) increase in the total nominal GDP.
D) increase in total exports.
72) Economic growth will
A) shift the production possibilities curve inward.
B) shift the production possibilities curve outward.
C) shift along the production possibilities curve toward the X-axis.
D) be a movement from inside the productions possibilities curve to the curve itself.
73) Suppose per capita real GDP grows by 3.5% per year. Based on the Rule of 70, approximately how many years will it take for the level of per capita real GDP to double (i.e., increase by 100%)?
A) 3.5 years
B) 10 years
C) 20 years
D) 35 years
74) Assume a country produces two types of goods: manufactured goods and agricultural goods. When this country experiences economic growth, we know that
A) the production possibilities curve will shift outward.
B) the production possibilities curve will shift inward.
C) there will be a movement along the curve toward more manufactured goods.
D) there will be movement along the curve toward more agricultural goods.
75) When looking at economic growth in a country, the distribution of output and income
A) generally follows predictable patterns.
B) is not taken into consideration.
C) is skewed toward the lowest quintile of the population.
D) is shared equally.
76) Which of the following is NOT a benefit of economic growth?
A) urban congestion
B) reduction in illiteracy
C) improved health
D) longer lives
77) Which of the following is a negative effect of economic growth?
A) higher inflation
B) higher unemployment
C) environmental pollution
D) all of the above
78) A change in the growth rate of a country of one percentage point annually has
A) very little impact on the economy of a country.
B) a large impact in the future due to compounding.
C) a small impact in the current year, and smaller impact in the future because of compounding.
D) a large impact on the economy in the current year, but not in the future.
79) The modification of manufacturing processes so as to reduce the resulting environmental damage is an endeavor that requires capital investment, labor inputs, and technology. What then follows from this statement?
A) Economic growth can benefit the environment.
B) Environmental damage is a regrettable but necessary side effect of economic growth.
C) The condition of the environment will be better in slower-growing countries.
D) The way to reduce pollution is to educate people about its effects.
80) What is the real GDP after four years if Country X's average annual growth rate is 8.6 percent and the initial real GDP was $2,756.0 million?
A) $2,993.0 million
B) $3,833.5 million
C) $1,077.5 million
D) $3,250.4 million
81) The per capita GDP for Hungary in 2011 was $12,000 and in 2012 was $12,360. How much did the economy grow in 2012?
A) 97 percent
B) 3 percent
C) 2 percent
D) 1 percent
82) A constant rate of U.S. economic growth over a given period of years would involve
A) adding the same amount of nominal dollars to real GDP per capita each year.
B) adding the same amount of real dollars to real GDP per capita each year.
C) compounding the percentage increase in real GDP per capita over the years.
D) None of the above are correct.
83) When economic growth is compared between countries, the best measure to use is
A) nominal GDP.
B) real GDP.
C) chain-weighted GDP.
D) real GDP per capita.
84) What is economic growth and why are growth rates so important?
85) "There is a direct relationship between economic growth rates and the wealth of a nation." Do you agree or disagree? Why?
86) What are the shortcomings of using changes in per capita real GDP to measure economic growth?