Unit 4 Test Bank

Unit 4 Test Bank - Unit 4 Test Bank CHAPTER 7 1. Economic...

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Unit 4 Test Bank CHAPTER 7 1. Economic growth is best defined as an increase in: A) either real GDP or real GDP per capita. B) nominal GDP. C) total consumption expenditures. D) wealth in the economy. 2. Real GDP per capita is found by: A) adding real GDP and population. B) subtracting population from real GDP. C) dividing real GDP by population. D) dividing population by real GDP. 6. For a nation's real GDP per capita to rise during a year: A) consumption spending must increase. B) real GDP must increase more rapidly than population. C) population must increase more rapidly than real GDP. D) investment spending must increase. 7. Growth is advantageous to a nation because it: A) promotes faster population growth. B) lessens the burden of scarcity. C) eliminates the economizing problem. D) slows the growth of wants. 15. At an annual growth rate of 4 percent, real GDP will double in about: A) 17 ½ years. B) 20 years. C) 13 ½ years. D) 15 years. 18. If the economy's real GDP doubles in 18 years, we can: A) not say anything about the average annual rate of growth. B) conclude that its average annual rate of growth is about 5.5 percent. C) conclude that its average annual rate of growth is about 2 percent. D) conclude that its average annual rate of growth is about 4 percent. 19. About ________ of U.S. economic growth comes from improved productivity (as opposed to added inputs). A) one-fourth. B) one-third. C) one-half. D) two-thirds. 23. Recurring upswings and downswings in an economy's real GDP over time are called: A) recessions. B) business cycles. C) output yo-yos. D) total product oscillations. 24. In the United States, business cycles have occurred against a backdrop of a long-run trend of: A) declining unemployment.
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B) stagnant productivity growth. C) rising real GDP. D) rising inflation. 25. The immediate determinant of the volume of output and employment is the: A) composition of consumer spending. B) ratio of public goods to private goods production. C) level of total spending. D) size of the labor force. 26. As it relates to economic growth, the term long-run trend refers to: A) the long-run increase in the relative importance of durable goods in the U.S. economy. B) the long-term expansion or contraction of business activity that occurs over 50 or 100 years. C) fluctuations in business activity that average 40 months in duration. D) fluctuations in business activity that occur around Christmas, Easter, and so forth. 29. During a severe recession, we would expect output to fall the most in: A) the health-care industry. B) the clothing industry. C) agriculture. D) the construction industry. 30. The phase of the business cycle in which real GDP declines is called: A) the peak. B)
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Unit 4 Test Bank - Unit 4 Test Bank CHAPTER 7 1. Economic...

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