Question 1

In 1800, the average income of U.S. citizens was roughly:

Accepted Answer

A)   $100.
B)   $1,400.
C)   $19,600.
D)   $2,000.
E)   $1,750.F) D) and E)
G) A) and B)

Question 2

In 2010, real gross domestic product (GDP)  in the United States was roughly $14.6 trillion. In 2011, real GDP in the United States was roughly $15.1 trillion. Therefore, between 2010 and 2011, real GDP grew by:

Accepted Answer

A)   4.3%.
B)   3.4%.
C)   3.3%.
D)   4.5%.
E)   0.5%.F) A) and E)
G) B) and E)

Question 3

Saudi Arabia is an oil-rich country in the Middle East. Much of the country is covered by desert, meaning that the nation's food production is very low. Much of its food must be imported from other countries. Does this mean that Saudi Arabia has a very small endowment of natural resources?

Accepted Answer

A)   No, because Saudi Arabia has lots of petroleum, a fossil fuel, which is also considered a natural resource.
B)   No, because very few people live in Saudi Arabia, so they have no use for large amounts of food production.
C)   Yes, because it has very little land for growing food.
D)   Yes, because it also lacks forests and rivers.
E)   No, because Saudi Arabia irrigates much of its desert land for food production.F) A) and B)
G) A) and D)

Question 4

Between 2006 and 2010, per capita real gross domestic product (GDP)  in India grew at an average rate of 7.11% per year. Which of the following factors would have contributed most to this rapid escalation in growth?

Accepted Answer

A)   advances in technology
B)   increases in government regulations
C)   decrease in education standards
D)   a significant increase in taxes
E)   restrictions on immigrationF) A) and C)
G) None of the above

Question 5

According to the World Bank, the 31 wealthiest countries in the world tended to have much lower rates of ___________ and much higher rates of ___________ when compared to the 40 poorest countries.

Accepted Answer

A)   adult literacy; cell phone subscriptions
B)   access to water; access to sanitation
C)   infant mortality; adult literacy
D)   Internet users; life expectancy
E)   educational achievement; life expectancyF) A) and B)
G) C) and D)

Question 6

In 1950, residents in Liberia were wealthier than those in Taiwan. Today, per capita gross domestic product (GDP)  in Taiwan is more than 20 times that of Liberia. Which of the following best explains why Taiwan is now so much wealthier than Liberia?

Accepted Answer

A)   Taiwan is a very large country with lots of resources, while Liberia is very small.
B)   Liberia lacks the sort of institutions that promote growth that Taiwan has.
C)   Taxes in Liberia are very high and prevent the economy from growing.
D)   All production in Taiwan is managed by the government, while in Liberia, the free market allocates resources.
E)   Liberia does not trade with other countries, while Taiwan has many trading partners.F) A) and B)
G) A) and C)

Question 7

Lauren owns a bakery. She wants to increase her daily production of baked goods, so she knows she needs to acquire more resources. Which of the following actions would represent an increase in the human capital resource at her bakery?

Accepted Answer

A)   repairing a broken delivery van
B)   increasing employee training
C)   purchasing ingredients in bulk
D)   buying better-quality ingredients
E)   moving into a larger spaceF) A) and E)
G) B) and E)

Question 8

Lauren owns a bakery. She wants to increase her daily production of baked goods, and she wants to use a technological advance to do so. _______________ would represent a technological advance at her bakery.

Accepted Answer

A)   Using higher-quality flour and other ingredients
B)   Increasing the number of employees
C)   Increasing the number of mixing bowls and spoons
D)   Installing a convection oven that can bake bread in half the time
E)   Better training for bakery staffF) A) and D)
G) A) and E)

Question 9

How did institutions promote economic growth during the Industrial Revolution?

Accepted Answer

Private property rights gave people an i...

Question 10

Which of the following would be classified as a natural resource?

Accepted Answer

A)   obtaining a college degree
B)   a factory
C)   coal
D)   a loaf of bread
E)   wireless networking equipmentF) C) and D)
G) B) and E)

Question 11

Average income in Western Europe in 1600 was roughly $1,400 per year, while in Latin America, it was less than half that. Which of the following best explains this difference in average income?

Accepted Answer

A)   Western Europe had fewer resources than Latin America.
B)   Western Europe had never been invaded or colonized, whereas Latin America had.
C)   Western Europe had more advanced technology than Latin America.
D)   Western Europe had lower taxes than Latin America.
E)   Western Europe had a better climate than Latin America.F) A) and D)
G) C) and E)

Question 12

Which of the following represents the technology used in a classroom?

Accepted Answer

A)   pencils, pens, markers, and erasers
B)   the instructional methods the teacher uses
C)   desks and chairs
D)   the building in which the classroom is located
E)   the lockers and storage cabinetsF) A) and E)
G) All of the above

Question 13

Steve owns a bike shop. He wants to increase the number of bikes he sells each week, and he wants to use a technological advance to do so. _______________ would represent a technological advance at his bike shop.

Accepted Answer

A)   Increasing the number of bikes he holds in inventory
B)   Utilizing an online ordering system that allows him to sell bikes across the country
C)   Increasing the number of employees
D)   Better training for his staff
E)   Increasing his inventory of helmets and accessories that he sellsF) B) and D)
G) All of the above

Question 14

If you earn a subsistence-level income, much of your time is spent acquiring:

Accepted Answer

A)   luxury items, such as expensive cars and a nice house.
B)   tax cuts, which will raise your take-home pay.
C)   education and training, to better improve your earnings.
D)   entertainment and consumer electronics.
E)   basic necessities such as food, clothing, and shelter.F) None of the above
G) C) and E)

Question 15

The percent change in real per capita gross domestic product (GDP)  equals:

Accepted Answer

A)   the percent change in nominal GDP.
B)   the percent change in nominal GDP minus the rate of population growth.
C)   the percent change in nominal GDP minus the rate of population growth minus the percent change in prices.
D)   the rate of population growth minus the percent change in prices.
E)   the rate of population growth.F) B) and E)
G) C) and D)

Question 16

Krista owns a hair salon. She wants to increase the number of clients she serves each month, so she knows she needs to acquire more resources. Which of the following actions would represent an increase in the physical capital resource at her hair salon?

Accepted Answer

A)   increasing the amount of training for her stylists
B)   hiring more stylists
C)   giving her stylists a raise
D)   purchasing better-quality shampoo
E)   buying more chairs and hair dryersF) C) and D)
G) None of the above

Question 17

The nation of Singapore has no natural resources to speak of, must import its water, and is very small in land mass. However, it has a very high real per capita gross domestic product (GDP)  and a literacy rate of over 95%. How can such a small country with no resources be so prosperous?

Accepted Answer

A)   Singapore has no taxes at all.
B)   Singapore is rich in other resources, like human capital.
C)   All property in Singapore is owned by the government.
D)   Singapore does not trade with any other country.
E)   Singapore has the world's largest military.F) B) and E)
G) D) and E)

Question 18

In the Republic of Yemen, per capita real gross domestic product (GDP)  in 2004 was $2,109.27. By 2005, it had increased to $2,203.05. At what rate did Yemen's economy grow in that time?

Accepted Answer

A)   4.26%
B)   4.45%
C)   9.38%
D)   1.21%
E)   8.44%F) B) and D)
G) A) and E)

Question 19

Average world income began to increase rapidly during:

Accepted Answer

A)   the Enlightenment.
B)   the Dark Ages.
C)   the Second World War.
D)   the War of the Ring.
E)   the Industrial Revolution.F) A) and E)
G) A) and B)

Question 20

Populations tend to grow over time, meaning there are more workers. In order to maintain a constant level of worker productivity, the total amount of capital available to them must:

Accepted Answer

A)   increase at a rate less than the rate of population growth.
B)   stay constant over time, as inflation and population growth tend to cancel each other out.
C)   increase at a rate equal to the rate of inflation.
D)   increase at a rate at least equal to population growth.
E)   decrease slightly, as this will motivate employees to work harder.F) A) and D)
G) A) and E)

Exam 11: Economic Growth and the Wealth of Nations

Krista owns a hair salon. She wants to increase the number of clients she serves each month, so she knows she needs to acquire more resources. Which of the following actions would represent an increase in the physical capital resource at her hair salon?

Correct AnswerverifiedShow Answer

In 1800, the average income of U.S. citizens was roughly:

Correct AnswerverifiedShow Answer

In 1950, residents in Liberia were wealthier than those in Taiwan. Today, per capita gross domestic product (GDP) in Taiwan is more than 20 times that of Liberia. Which of the following best explains why Taiwan is now so much wealthier than Liberia?

Correct AnswerverifiedShow Answer

Lauren owns a bakery. She wants to increase her daily production of baked goods, and she wants to use a technological advance to do so. _______________ would represent a technological advance at her bakery.

Correct AnswerverifiedShow Answer

Average income in Western Europe in 1600 was roughly $1,400 per year, while in Latin America, it was less than half that. Which of the following best explains this difference in average income?

Correct AnswerverifiedShow Answer

The nation of Singapore has no natural resources to speak of, must import its water, and is very small in land mass. However, it has a very high real per capita gross domestic product (GDP) and a literacy rate of over 95%. How can such a small country with no resources be so prosperous?

Correct AnswerverifiedShow Answer

Between 2006 and 2010, per capita real gross domestic product (GDP) in India grew at an average rate of 7.11% per year. Which of the following factors would have contributed most to this rapid escalation in growth?

Correct AnswerverifiedShow Answer

According to the World Bank, the 31 wealthiest countries in the world tended to have much lower rates of ___________ and much higher rates of ___________ when compared to the 40 poorest countries.

Correct AnswerverifiedShow Answer

Which of the following represents the technology used in a classroom?

Correct AnswerverifiedShow Answer

Saudi Arabia is an oil-rich country in the Middle East. Much of the country is covered by desert, meaning that the nation's food production is very low. Much of its food must be imported from other countries. Does this mean that Saudi Arabia has a very small endowment of natural resources?

Correct AnswerverifiedShow Answer

If you earn a subsistence-level income, much of your time is spent acquiring:

Correct AnswerverifiedShow Answer

Which of the following would be classified as a natural resource?

Correct AnswerverifiedShow Answer

How did institutions promote economic growth during the Industrial Revolution?

Correct AnswerverifiedPrivate property rights gave people an i...View AnswerShow Answer

In 2010, real gross domestic product (GDP) in the United States was roughly $14.6 trillion. In 2011, real GDP in the United States was roughly $15.1 trillion. Therefore, between 2010 and 2011, real GDP grew by:

Correct AnswerverifiedShow Answer

Steve owns a bike shop. He wants to increase the number of bikes he sells each week, and he wants to use a technological advance to do so. _______________ would represent a technological advance at his bike shop.

Correct AnswerverifiedShow Answer

The percent change in real per capita gross domestic product (GDP) equals:

Correct AnswerverifiedShow Answer

Lauren owns a bakery. She wants to increase her daily production of baked goods, so she knows she needs to acquire more resources. Which of the following actions would represent an increase in the human capital resource at her bakery?

Correct AnswerverifiedShow Answer

Average world income began to increase rapidly during:

Correct AnswerverifiedShow Answer

In the Republic of Yemen, per capita real gross domestic product (GDP) in 2004 was $2,109.27. By 2005, it had increased to $2,203.05. At what rate did Yemen's economy grow in that time?

Correct AnswerverifiedShow Answer

Populations tend to grow over time, meaning there are more workers. In order to maintain a constant level of worker productivity, the total amount of capital available to them must:

Correct AnswerverifiedShow Answer

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According to the World Bank, the 31 wealthiest countries in the world tended to have much lower rates of _ and much higher rates of _ when compared to the 40 poorest countries.

Correct Answer
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Private property rights gave people an i...
View Answer

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