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Chapter 12 Production and Growth Multiple Choice 1. A nation's standard of living is measured by its a. real GDP. b. real GDP per person. c. nominal GDP. d. nominal GDP per person. ANS: B 2. Real GDP per person a. minus real GDP per person from the previous period equals the growth rate of real GDP per person. b. provides more meaningful comparisons across time and countries than real GDP. c. provides a less useful measure of the standard of living than nominal GDP per person. d. All of the above are correct. ANS: B 3. 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 a. level of real GDP. b. growth rate of nominal GDP. c. growth rate of real GDP. d. growth rate of real GDP per person. ANS: D 4. Over the past century in the United States, real GDP per person has grown by about a. 1 percent per year. b. 2 percent per year. c. 3 percent per year. d. 4 percent per year. ANS: B 5. During the past century the average growth rate of U.S. real GDP per person implies that it doubled about every a. 100 years on average. b. 70 years. c. 35 years. d. 25 years. ANS: C 6. In the United States, as measured by real GDP per person, average income is about how many times as high as average income a century ago? a. 2 b. 4 c. 6 d. 8 ANS: D 7. Over the past 100 years, U.S. real GDP per person has doubled about every 35 years. If in the next 100 years it doubles every 25 years, then a century from now U.S. real GDP per person will be a. 4 times higher than it is now. b. 8 times higher than it is now. c. 12 times higher than it is now. d. 16 times higher than it is now. ANS: D 8. Over the last century, US real GDP per person grew at a rate of about a. 2% per year, so that it is now 2 times as high as it was a century ago. b. 2% per year, so that it is now 8 times as high as it was a century ago. c. 4% per year, so that it is now 2 times as high as it was a century ago. d. 4% per year, so that it is now 8 times as high as it was a century ago. ANS: B 9. Over the past century in the United States, average income as measured by real GDP per person has grown about a. 3.5 percent per year, which implies a doubling about every 20 years. b. 2 percent per year, which implies a doubling about every 35 years. c. 4 percent per year, which implies a doubling about every 17.5 years. d. None of the above is correct. ANS: B 10. The level of real GDP person a. differs widely across countries, but the growth rate of real GDP per person is similar across countries. b. is very similar across countries, but the growth rate of real GDP per person differs widely across countries. c. and the growth rate of real GDP per person are similar across countries.... View Full Document

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