Ch 10 Economic Growth

How is economic growth measured?

• As real GDP per capita

• As total country population

• As the quantity of goods exported

• As the rate of employment

What is a key determinant of living standards?

• The rate of inflation

• Real GDP per capita

• The level of government debt

• The amount of foreign investment

What must a country do to enjoy a higher standard of living?

• Decrease the quantity of goods and services produced

• Increase taxes on goods and services

• Produce a larger quantity of goods and services

• Import a larger quantity of goods and services

What does Real GDP per capita describe?

• The total value of all goods and services produced in a country

• The change in purchasing power for each person over time

• The population growth rate of a country

• The nominal GDP growth rate

How is real GDP per capita growth rate calculated?

• Real GDP per capita growth rate = nominal GDP growth rate + inflation rate + population growth rate

• Real GDP per capita growth rate = nominal GDP growth rate - inflation rate - population growth rate

• Real GDP per capita growth rate = nominal GDP growth rate / inflation rate / population growth rate

• Real GDP per capita growth rate = nominal GDP growth rate * inflation rate * population growth rate

What is the formula for calculating the real GDP per capita growth rate?

• Real GDP per capita growth rate = Nominal GDP growth rate + inflation rate + population growth rate

• Real GDP per capita growth rate = Nominal GDP growth rate - inflation rate - population growth rate

• Real GDP per capita growth rate = Nominal GDP growth rate / (inflation rate + population growth rate)

• Real GDP per capita growth rate = (Nominal GDP growth rate + inflation rate) / population growth rate

What does compounding refer to in economic growth?

• The decrease of economic value over time

• The process where economic growth builds on itself over time

• The fixed annual increase in the economy

• The division of economic growth into 70 units

What is the purpose of the Rule of 70?

• To calculate the exact GDP of a country

• To determine the interest rate for savings accounts

• To estimate the length of time for an economy to double itself

• To measure the inflation rate of an economy

If Canada's economy grows at a rate of 2 percent per year, how many years will it take for the economy to double in size?

• 20 years

• 35 years

• 50 years

• 70 years

What is considered the key determinant of living standards according to the text?

• Increases in inputs

• Increases in input utilization

• Increase in productivity

• Increase in economic diversity