Chapter 25 (A)

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.

6. 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.
• D.and the growth rate of real GDP per person vary widely across countries.

9. New products are invented every year. Consequently real GDP growth

• A.probably underestimates the rate of real economic growth.
• B.probably overestimates the rate of real economic growth.
• C. probably accurately estimates the rate of real economic growth.
• D.is rarely useD.

14. 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.

15. Which of the following does the level of real GDP measure?

• A.total real income
• B.productivity
• C. the standard of living
• D.All of the above are correct.

16. The average amount of goods and services produced from each hour of a worker's time is called

• A.per capita GDP
• B.per capita GNP
• C. productivity
• D.human capital

17. 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.

24. Which of the following is correct?

• A.Countries with the highest growth rates over the last 100 years are the ones that had the highest level of real GDP 100 years ago.
• B.Most countries have had little fluctuation around their average growth rates during the past 100 years.
• C. The ranking of countries by income changes substantially over time.
• D.Over the last 100 years, Japan had the highest real GDP growth rate, and now has the highest real GDP per person.

28. In 2002 real GDP per person in Olympus was 4,500. In 2001 it was 4,250. What was the growth rate of real GDP per person?

• A.5.6 percent
• B.5.9 percent
• C. 6.5 percent
• D.None of the above are correct to the nearest tenth.

29. In 2002 real GDP in Oceania was 561.0 billion and the population was 2.2 million. In 2001 real GDP was 500.0 billion and the population was 2.0 million. What was the approximate growth rate of real GDP per person?

• A.12 percent
• B.10 percent
• C. 4 percent
• D.2 percent