11. Real GDP per capita: A. cannot grow more rapidly than real GDP. B. cannot gr
ID: 1217873 • Letter: 1
Question
11. Real GDP per capita:
A. cannot grow more rapidly than real GDP.
B. cannot grow more slowly than real GDP.
C. necessarily grows more rapidly than real GDP.
D. can grow either more slowly or more rapidly than real GDP.
12. Economic growth rates in follower countries:
A. tend to be lower than in leader countries because labor forces in follower countries are too small.
B. tend to exceed those in leader countries because followers can cheaply adopt the new technologies that leaders developed at relatively high costs.
C. will never bring real GDP per capita up to the same levels as in leader countries, even if follower growth rates are greater than those in leader countries.
D. typically average about 2 percent per year.
13. Suppose that an economy's labor productivity and total worker-hours each grew by 3 percent between year 1 and year 2. We could conclude that this economy's:
A. real GDP remained constant.
B. capital stock increased by 3 percent.
C. production possibilities curve shifted inward.
D. production possibilities curve shifted outward.
14. An outward shift of a nation's production possibilities curve:
A. ensures the nation of an increase in real GDP per capita.
B. ensures the nation of an increase in real GDP, but not of real GDP per capita.
C. ensures a nation neither of an increase in real GDP nor of an increase in real GDP per capita.
D. ensures a nation of an increase in both real GDP and real GDP per capita.
15. (Consider This) According to the Consider This box about hypothetical countries Slogo, Sumgo, and Speedo, small differences in __________ make for large differences in _________ over several decades, assuming the same growth of population for each country.
A. inflation rates; unemployment rates
B. unemployment rates; economic growth rates
C. economic growth rates; real GDP per capita
D. tax rates; real GDP per capita
Explanation / Answer
Answer 11:
Real GDP per capita = Real GDP / Population
Option D. As population growth rate could be higher or lower.
Answer 12;
Option B.
Answer 13:
Option D. Increase in productivity increases efficiency and thus shift the PPF outwards.
Answer 14: Option C.
Answer 15:
Option C.
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