Question 1

Holding all else constant, a country's standard of living will decline if its

nominal GDP grows at a faster rate than real GDP.
nominal GDP grows at a slower rate than real GDP.
the rate of population growth exceeds the rate of growth of real GDP.
the rate of population growth is less than the rate of growth of real GDP.

Question 2

Define economic growth. Why is it described as a process rather than an event?

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Question 3

The skills, training, and education possessed by workers contribute to economic growth

by increasing saving.
by increasing the quantity of labor.
by increasing real wages.
by increasing the quality of labor.

Question 4

Towards the end of the twentieth century, some of the world's more affluent countries experience robust growth. Which of the following is not linked to high growth performance?

encouragement of competitive behavior
liberal trade policies
private sector research and development
strict regulations in labor markets, for example strict employment protection legislation

Question 5

A change in the availability of natural resources will shift the aggregate production function.

true
false

Question 6

Economic growth occurs when
nominal GDP increases.
a nation's capacity to produce increases.
GDP per capita in the short run increases.
there is a movement along the production possibility curve resulting in increased personal consumption expenditures.

Question 7

Which of the following is an example of an investment in human capital?

accepting a job in the computer industry
purchasing a computer to increase the productivity of your workers
enrolling in a course to improve your computer skills
installing a new piece of software on your computer which enables you to read documents online

Question 8

If an economy grows at a constant rate of 1.5% per year, it will not experience exponential growth.
false
true

Question 9

Increases in human capital will promote economic growth.
false
true

Question 10

Suppose the world's population in 2000 is 6.3 billion and is projected to grow at a rate of 1.2% per year. In approximately what year will the world's population be 12.6 billion?

about the end of 2005
in the year 2060
in the year 3000
in the year 2011