Question: During the last two centuries, the average rate of growth of GDP per capita in the leading industrialized countries has averaged about _________ per year.
Answer: 2%
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Question: _____________________ is a term which refers to the widespread use of power-driven machinery and the economic and social changes that resulted in the first half of the 1800s.
Answer: Industrial Revolution
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Question: To achieve a high standard of living, a nation should:
Answer: B. promote economic growth.
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Question: In the long run, the most important source of increase in a nation's standard of living is a:
Answer: B. high rate of economic growth.
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Question: The value of what is produced per worker, or per hour worked, is called ____________.
Answer: Productivity
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Question: Assuming a country's economy maintains an 8% rate of growth, young adults starting at age 20 would see the average standard of living in their country more than double by the time they had reached age __________.
Answer: 30
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Question: When discussing economic growth, it is often useful to focus on ____________, to avoid studying changes in the size of GDP that represent only having more people in the economy, and focus on those increases in GDP which represent an actual rise in the standard of living on a per person basis.
Answer: GDP per capita
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Question: 8. Investment in human capital:
Answer: B. can be acquired through on-the-job training.
C. is an important source of economic growth.
D. is characterized by both b) and c).
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Question: Which of the following is most likely to contribute to economic growth as measured by GDP per capita?
Answer: Increased capital formation
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Question: Country Alpha and Country Beta initially have the same real GDP per capita. Country Alpha experiences no economic growth, while Country Beta grows at a sustained rate of 5 percent. In 14 years, Country Alpha's GDP will be approximately _________ that of Country Beta.
Answer: one-half
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Question: Which of the government policies below is most unlikely to encourage per capita economic growth?
Answer: A. high taxes on companies that spend a lot on capital formation
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Question: Over the long run, ____________ per hour is the most important determinant of the average wage level in any economy.
Answer: Productivity
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Question: True or false: Why? Increased investment alone will guarantee economic growth.
Answer: D. This is a false statement, because economic growth hinges on the quality and type of investment as well as the human capital and improvements in technology.
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Question: Which of the following best describes the relationship between economic growth and literacy?
Answer: C. Increased literacy stimulates economic growth by raising labor productivity, and as the economy grows, people consume more education.
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Question: A country will roughly double its GDP in twenty years if its annual growth rate is:
Answer: 3.5%
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Question: Which of the following factors contribute to economic growth?
Answer: D. an increase in the proportion of the population that is college educated
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Question: Some prominent members of the slow-economic growth country club include a high-income country like _________.
Answer: Germany
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Question: A nation's prosperity is sometimes measured in terms of ___________.
Answer: GDP Per capita
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Question: An economy's rate of productivity growth is closely linked to the growth rate of its ______________, although the two aren't identical.
Answer: GDP per capita
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Question: In Bangladesh during the early 2000s, the illiteracy rate for girls between the ages of 15 and 24 was __________ and the illiteracy rate for males in this age group was ______________.
Answer: 78%; 75%
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