Production and Growth Quiz 3

The average income in a rich country, such as the United States or Japan, is more than

• 3 times, but less than 5 times, the average income in a poor country, such as Indonesia or Nigeria.

• 5 times, but less than 10 times, the average income in a poor country, such as Indonesia or Nigeria.

• 10 times, but less than 20 times, the average income in a poor country, such as Indonesia or Nigeria.

• more than 20 times the average income in a poor country, such as Indonesia or Nigeria.

In which of the following countries has economic growth been sufficiently strong in recent history to propel that country from being among the poorest in the world to being among the richest in the world?

• South Korea

• Senegal

• India

• Indonesia

Productivity is the amount of goods and services

• an economy produces. It is not linked to a nation’s economic policies.

• an economy produces. It is linked to a nation’s economic policies.

• produced for each hour of a worker’s time. It is not linked to a nation’s economic policies.

• produced for each hour of a worker’s time. It is linked to a nation’s economic policies.

A nation's standard of living is best measured by its

• real GDP.

• real GDP per person.

• nominal GDP.

• nominal GDP per person.

If one wants to know how the material well-being of the average person has changed over time in a given country, one should look at the

• level of real GDP.

• growth rate of nominal GDP.

• growth rate of real GDP.

• growth rate of real GDP per person.

Which of the following is correct?

• Countries with the highest growth rates over the last 100 years are the ones that had the highest level of real GDP 100 years ago.

• Most countries have had little fluctuation around their average growth rates during the past 100 years.

• The ranking of countries by income changes substantially over time.

• Over the last 100 years, Japan had the highest real GDP growth rate, and now has the highest real GDP per person.

Last year real GDP in the imaginary nation of Oceania was 561.0 billion and the population was 2.2 million. The year before, real GDP was 500.0 billion and the population was 2.0 million. What was the growth rate of real GDP per person during the year?

• 12 percent

• 10 percent

• 4 percent

• 2 percent

In 2009, the imaginary nation of Florastan had a population of 8,300 and real GDP of 190,900. Florastan had 5% growth in real GDP per person. In 2010 it had a population of 8,400. What was real GDP in Florastan in 2010?

• 200,445

• 202,860

• 198,059

• None of the above is correct.

In 2009, the imaginary nation of Platland had a population of 10,000 and real GDP of 42,000,000. During the year its real GDP grew by about 1.98%. Which of the following sets of growth rates is consistent with this growth in real GDP?

• 1% population growth and 3% real GDP growth

• 3% population growth and 1% real GDP growth

• 3% population growth and 6% real GDP growth

• 6% population growth and 3% real GDP growth

Which of the following is not correct?

• Countries that have had higher output growth per person have typically done so without higher productivity growth.

• A country's standard of living and its productivity are closely related.

• Productivity refers to output produced per hour of work.

• Increases in productivity can be used to increase output or leisure.