ECN 204 Chapter Notes - Chapter 8: Annual Percentage Rate, Allocative Efficiency, Productive Efficiency

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bronzepig36

25 Jul 2016

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Ecn204 chapter 8 economic growth. Economic growth can be measured as (1) an increase in real gdp occurring over some time period and (2) an increase in real gdp per capita occurring over some time period. Rule of 70 method that determines number of years for measure to double. Economists measure economic growth as either (1) an increase in real gdp over time or (2) an increase in real gdp per capita over time. Growing economy lets government undertake new programs to alleviate poverty, embrace diversity, cultivate the arts and protect the environment without impairing scarcity levels. Modern economic growth is characterized by sustained ongoing increases in living standards that can cause dramatic increases in the standard of living within a generation. Growth is effected by cultural, social, and political arrangements. Cultural increases wealth and living standards, allowing for more leisure time. Social increases public education and encourages diversity. Political arrangements a move towards democracy.

Related Questions

Which of the following are used by economists to define and measure economic growth?

a) An increase in real GDP occurring over some time period.
b) An increase in real GDP per capita occurring over some time period.

c) All of the above

lilacbadger994

1. Economic growth is measured as an increase in real GDP.

True/False

2. Per capita real GDP

a) is equivalent to the real GDP level.
b) is a measure of the value of output produced and available to an average person.
c) is higher in developing countries.
d) is a measure of an economy's income distribution.
e) is a measure of the GDP per country.

3. Suppose Congress enacts a 5 percent decrease in annual military expenditures. Other things equal, this will be associated with a movement down along the aggregate demand curve.

True/False

4. In relative terms, globalization has affected all countries equally.

True/False

5. There was more immigration in the nineteenth and early twentieth centuries than there is in the present day.

True/False

6. Suppose that Italy's average annual growth rate is 6 percent and Canada's average annual growth rate is 4 percent. Then the time required for Canada's growth rate to double will be 12 years more than the time required for Italy's growth rate to double.

True/False

7. Assume that annual real GDP increases by 4.5 percent and the population size grow by 2.7 percent in a year. The annual percapita real growth rate will be 2.8 percent

True/False

8. Most developing countries

a) have no natural resources.
b) experience slow growth in their labor force.
c) allocate their resources to the production of capital goods.
d) are unable to convert their natural resources into productive inputs.
e) make inefficient use of their technological advancement.

9. Economic statistics show that in compared to First World countries, developing countries have

a) a higher life expectancy.
b) higher productivity rates.
c) lower education levels.
d) lower birthrates.
e) a higher rate of private investment.

silverotter427

QUESTION 31

Suppose that twenty-five years ago a country had nominal GDP of $1,800, a GDP deflator of 150, and a population of 100. Today it has nominal GDP of $2,800, a GDP deflator of 270, and population of 180. What happened to the real GDP per person?

It more than doubled

It increased, but it less than doubled

It was unchanged

It decreased

1 points

QUESTION 32

During a presidential campaign, the incumbent argues that he should be reelected because nominal GDP grew by 12 percent during his 4-year term in office. You know that population grew by 4 percent over the period and that the GDP deflator increased by 6 percent during the past 4 years. You should conclude that real GDP per person

grew by 2%

grew by 6%

grew by 8%

grew by 12%

1 points

QUESTION 33

Suppose todayâs CPI is 134.85, and suppose one must spend $986 today to purchase the same basket of goods and services that could be bought for $680 in 1989. Then the CPI in 1989 was

24.27

60.68

93.00

195.53

1 points

QUESTION 34

If your firmâs production function has a decreasing returns to scale and you increase all your inputs by 60%, then your firm's output will

not change

increase, but by less than 60%

increase by 60%

increase by more than 60%

QUESTION 36

Suppose country's nominal GDP tripled, population grew by 40%, and prices doubles over the last 25 year. What happened to nominal GDP per person?

increased by 114%

increased by 93%

increased by 87%

decreased by 69%

1 points

QUESTION 37

A barber shop produces 288 haircuts a day. Each barber in the shop works 8 hours per day and produces the same number of haircuts per hour. If the shopâs productivity is 3 haircuts per hour of labor, then how many barbers does the shop employ?

None of the above is correct

1 points

QUESTION 38

If the nominal interest rate is 11% and the rate of inflation is 6%, then the real interest rate is

-5%

1.67%

11%

1 points

QUESTION 39

Last year real GDP in Greatland was 651 billion and the population was 2.4 million. The year before, real GDP was 460 billion and the population was 1.9 million. What was the growth rate of real GDP per person during the year?

12 percent

10 percent

4 percent

2 percent

1 points

QUESTION 40

If real GDP increases by 40% and the GDP deflator decreases by 10%, then nominal GDP increases by

40%

30%

26%

-10%

ECN 204 Chapter Notes - Chapter 8: Annual Percentage Rate, Allocative Efficiency, Productive Efficiency

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