Posted: March 21st, 2023
Economics Multiple Choise Questions
Multiple choice questions (to be solved online). It constitutes 100% of this assignment.
Requires knowlwedge from chapter 6, 7, and 8.
1. If one wants to know how the material well-being of the average person has changed over time in a given country, which of the following should one look at?
A. the level of real GDP
B. the growth rate of nominal GDP
C. the growth rate of real GDP
D. the growth rate of real GDP per person
2. Over the past century in Canada, by how much has real GDP per person grown?
A. by about 1 percent per year
B. by about 2 percent per year
C. by about 4 percent per year
D. by about 6 percent per year
3. Which of the following countries had the highest growth rate over the past 100 years?
D. United States
4. Which of the following statements best describes the relationship between the initial wealth and the growth rate of a country?
A. 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.
B. Countries that were rich a century ago had little fluctuation around their average growth rates during the past 100 years.
C. Though the catch-up effect may suggest otherwise, the data show no strong relationship between initial conditions and growth rates.
D. Over the last 100 years, Japan had the highest real GDP growth rate, and now it has the highest real GDP per person.
5. Last year, real GDP per person in Olympus was $5500. The year before, it was $4500. What was the growth rate of real GDP per person?
A. 18.18 percent
B. 20 percent
C. 22.2 percent
D. 24 percent
6. In 2010 real GDP in Latania was $750 billion and the population was 3 million. In 2011 real GDP was $990 billion and the population was 3.3 million. What was the approximate growth rate of real GDP per person?
A. 11 percent
B. 14 percent
C. 17 percent
D. 20 percent
7. How does productivity explain the differences in standard of living across countries?
A. Productivity tends to be lower in countries with high population, therefore in those countries standards of living are lower.
B. Productivity explains very little of the differences across countries in the standard of living.
C. Productivity explains some, but not most, of the differences across countries in the standard of living.
D. Productivity explains most of the differences across countries in the standard of living.
8. Cedar Valley Furniture uses 5 workers working 8 hours to produce 80 rocking chairs. What is the productivity of these workers?
A. 2 chairs per hour
B. 1 hour per chair
C. 80 chairs
D. 10 chairs per day
9. Which of the following would NOT be considered physical capital?
A. a new factory building
B. a computer used to help Mercury Delivery Service keep track of their orders
C. on-the-job training
D. a desk used in an accountant’s office
10. Which of the following best defines human capital?
A. the knowledge and skills that workers acquire through education, training, and experience
B. the stock of equipment and structures that is used to produce goods and services
C. the total number of hours worked in an economy
D. the same thing as technological knowledge
11. Which of the following is considered human capital?
A. the number of computers available in schools and universities
B. the average percentage of income people give to charity
C. the number of persons in the labour force
D. knowledge acquired from on-the-job training
12. Which of the following lists contains, in this order, natural resources, human capital, and physical capital?
A. for a restaurant: the land where it stands; the things the chef learned at cooking school; the freezers where the steaks are kept
B. for a furniture company: wood; the company cafeteria; saws
C. for a railroad: fuel; railroad engines; railroad tracks
D. for an oil company: the oil it brings to surface; the rigs; the refineries using its oil
13. In a market economy, what does the real, or inflation-adjusted, price of a resource measure?
A. contribution to revenue
B. relative scarcity
C. relative importance
D. contribution to efficiency
14. A leading environmental group recently published a report contending that humans are running a “resource deficit” because we are using natural resources faster than they can be regenerated. The group claims that this means that economic growth will eventually stop, and will even be reversed. How would an economist respond to this report?
A. An economist would agree with the report, and would point to rising natural resource prices as evidence.
B. An economist would agree with the report, but wouldn’t think it was important because growth will not slow down for several centuries.
C. An economist would disagree with the report, in part because it ignores the mitigating effects of technological change.
D. An economist would disagree with the report because labour and capital are the primary determinants of growth, and since they are plentiful, growth will not slow down.
15. If a production function has constant returns to scale, how can output be doubled?
A. by doubling labour
B. by doubling any one of the inputs
C. by doubling all of the inputs
D. by increasing all inputs by more than double
16. If the number of workers in an economy doubled, all other inputs stayed the same, and there were constant returns to scale, what would happen to productivity?
A. It would fall to half its former value.
B. It would fall but by less than half.
C. It would stay the same.
D. It would rise but less than double.
17. Suppose that real GDP grew more in Country A than in Country B last year. Which of the following does this imply concerning productivity or standard of living?
A. Country A must have a higher standard of living than country B.
B. Country A’s productivity must have grown faster than country B’s.
C. Country A must have a higher real GDP than Country B.
D. Country A’s productivity must have been higher only if the population in the two countries grew at the same rate.
18. How can a government encourage growth and, in the long run, raise the country’s economic standard of living?
A. by encouraging population growth
B. by encouraging consumption
C. by encouraging saving and investment
D. by increasing government spending
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