PSU ECO 152- LESSON 3 REVIEW 1

Economic growth is measured as either an increase in real GDP or an increase in real GDP per capita

• True

• False

2.If a nation's real GDP increases from 300 billion to 360 billion and its population increases from 200 million to 212 million, it real GDP per capita will:

• fall by 15 percent

• rise by 13.3 percent.

• fall by 13.3 percent.

• remain constant.

If a nation's real GDP is growing by 10% per year, its real GDP will double in approximately:

• 7.8 years.

• 14 years.

• 7 years.

• 22.3 years.

. If the real output of an economy were to increase from $1000 billion to $1200 billion in 1 year, the rate of growth of real out put during that year would be

• 10%

• 20%

• 40%

• 50%

which of the following is the best measure of economic growth?

• the supply factor

• the demand facor

• real GDP per capita

• nominal GDP

Assume that an economy has 100 workers, each working 2000 hours per year. If the average real output per worker hour is $9, then total output or real GDP will be

• $2 million

• $9 million

• $1.8 million

• $24 million

Which is a benefit of real economic growth to a society?

• The societ is less abole to satisfy new wants

• Everyone enjoys a greater nominal income

• The burden of scarcity increases

• The standard of living increases

The only source of economic growth is growth in the number of workers in the economy.

• True

• False

Real GDP is the best measure of economic growth for comparing standards of living among nations

• True

• False

Poorer follower country can never catch up with and or surpass the living standards of rich leader countries

• True

• False