Chapter7(Practicequestion)

Chapter7(Practicequestion) - Chapter 7-Production and...

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Chapter 7—Production and Growth 1. Over the past century in Canada, real GDP per person has grown by about a. 1 percent per year. b. 2 percent per year. c. 4 percent per year. d. 6 percent per year. 2. In some East Asian countries, average income, as measured by real GDP per person, has grown at an average annual rate that implies output should double about every a. 10 years. b. 15 years. c. 20 years. d. 25 years. 3. Which of the following is true? a. Although levels of real GDP per person vary substantially from country to country, the growth rate of real GDP per person is similar across countries. b. Productivity is not closely linked to government policies. c. The level of real GDP per person is a good gauge of economic prosperity, and the growth rate of real GDP per person is a good gauge of economic progress. d. Productivity may be measured by the growth rate of real GDP per person. 4. A nation's standard of living is determined by a. its productivity. b. its gross domestic product. c. its national income. d. how much it has relative to others. 5. Of the following countries which grew the slowest over the last 100 years? a. Brazil. b. Mexico. c. China. d. United States. 6. In 1870, the richest country in the world was a. Canada. b. The United States. c. The United Kingdom. d. Germany. 7. In 2002 real GDP in Latania was 750 billion and the population was 3 million. In 2003 real GDP was 907.5 and the population was 3.3 million. What was the approximate growth rate of real GDP per person? a. 10 percent b. 14 percent c. 17 percent d. 21 percent 8. Which of the following is correct? a. If a relatively poor country had grown at 3.5 percent per year for the last 100 years, it would be a relatively rich country today. b. International data on the history of real GDP growth rates shows that the rich countries get
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richer and the poor countries get poorer. c. In Canada, average income today is about four times as high as average income a century ago. d. All of the above are correct. 9. 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. None of the above are correct. 10. Both Tom and Jerry work eight hours a day. Tom can produce six baskets of goods per hour while Jerry can produce four baskets of the same goods per hour. It follows that Tom's a. productivity is greater than Jerry's. b. output is greater than Jerry's. c. standard of living is higher than Jerry's. d. All of the above are correct. 11. 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. Trees used in building a house d. A flour used in making bread 12. Which of the following lists contains, in this order, natural resources, human capital, and physical capital? a.
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Chapter7(Practicequestion) - Chapter 7-Production and...

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