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Chapter 17 Production and Growth TRUE/FALSE 1. If per capita real income grows by 2 percent per year, then it will double in approximately 20 years. ANS: F DIF: 1 REF: 17-0 NAT: Analytic LOC: Productivity and growth TOP: Economic growth MSC: Definitional 2. Over the period 1870-2006, the United States experienced an average annual growth rate of real GDP per person of about 4 percent per year. ANS: F DIF: 1 REF: 17-1 NAT: Analytic LOC: Productivity and growth TOP: Economic growth MSC: Definitional 3. In 2006, income per person in the United States was about 12 times that in India. ANS: T DIF: 1 REF: 17-1 NAT: Analytic LOC: Productivity and growth TOP: Economic growth MSC: Definitional 4. Over the period 1900-2006, Brazils rate of economic growth exceeded that of China. ANS: T DIF: 2 REF: 17-1 NAT: Analytic LOC: Productivity and growth TOP: Economic growth MSC: Definitional 5. If a country has a higher level of productivity than another, then it also has a higher level of real GDP. ANS: F DIF: 2 REF: 17-1 NAT: Analytic LOC: Productivity and growth TOP: Productivity MSC: Analytical 6. International data on real GDP per person give us a sense of how standards of living vary across countries. ANS: T DIF: 1 REF: 17-1 NAT: Analytic LOC: Productivity and growth TOP: Real GDP MSC: Definitional 201 202 Chapter 17 /Production and Growth 7. Real GDP per person in rich countries, such as Germany, is sometimes more than 10 times that of poor countries like Pakistan. ANS: T DIF: 1 REF: 17-1 NAT: Analytic LOC: Productivity and growth TOP: Standard of living MSC: Definitional 8. Both the standard of living and the growth of real GDP per person vary widely across countries. ANS: T DIF: 1 REF: 17-1 NAT: Analytic LOC: Productivity and growth TOP: Standard of living | Real GDP MSC: Definitional 9. If they could increase their growth rates slightly, countries with low income would catch up with rich countries in about ten years. ANS: F DIF: 1 REF: 17-1 NAT: Analytic LOC: Productivity and growth TOP: Economic growth | Catch-up effect MSC: Interpretive 10. In the United States real GDP per person is about $44,000, while in some poor countries real GDP per person is less than $3,000. ANS: T DIF: 1 REF: 17-1 NAT: Analytic LOC: Productivity and growth TOP: Economic growth MSC: Definitional 11. Although growth rates across countries vary some, rankings of countries by income remain pretty much the same over time. ANS: F DIF: 1 REF: 17-1 NAT: Analytic LOC: Productivity and growth TOP: Economic growth MSC: Definitional 12. International data on the history of real GDP growth rates shows that over the last 100 years or so, rich countries got richer and poor countries got poorer.... View Full Document

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