Economic Concepts and Measurements

The video introduces Module 37, focusing on academic growth and productivity. It explains real GDP per capita, its use in comparing countries economically, and its limitations. The video discusses global GDP per capita, highlighting disparities between countries. The rule of seventy is introduced to calculate doubling time for growth rates. Finally, it covers factors contributing to long-term economic growth, including physical capital, human capital, and technology.

What is the primary purpose of using real GDP per capita when comparing countries?

• To evaluate the social well-being of a country's citizens

• To compare economic performance by accounting for population size

• To assess the inflation rate in a country

• To measure the total population of a country

Which of the following is a limitation of using GDP per capita as an economic measure?

• It does not account for inflation

• It ignores the distribution of income within a country

• It measures the total GDP of a country

• It only considers the agricultural sector

Which country was at the top of the GDP per capita list in 2014?

• Australia

• United States

• Luxembourg

• Japan

What does the Rule of Seventy help determine?

• The annual growth rate of a country

• The time it takes for a metric to double

• The time it takes for a population to halve

• The inflation rate over a decade

If a savings account earns 2% interest annually, how long will it take for the balance to double according to the Rule of Seventy?

• 100 years

• 35 years

• 70 years

• 50 years

What is considered a form of physical capital?

• A farmer's tractor

• A company's software

• A country's natural resources

• A worker's education

How does human capital contribute to long-run economic growth?

• By increasing the population size

• By improving worker skills and education

• By increasing the number of natural resources

• By reducing the need for physical capital

What distinguishes technology from physical capital?

• Technology refers to existing items, while physical capital refers to new innovations

• Technology is more expensive than physical capital

• Technology involves new methods and innovations, while physical capital involves existing goods

• Technology is only used in the service sector, while physical capital is used in manufacturing

Which company was one of the first to effectively use computers to increase productivity?

• Microsoft

• Walmart

• Amazon

• Apple

What is a benefit of cloud computing mentioned in the video?

• It is only accessible to large corporations

• It eliminates the need for internet access

• It allows for seamless work across different devices

• It reduces the need for physical offices