Growth in Different Countries and Self-Quiz

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Different Countries

Communist vs. NonCommunist

Europe and Asia converge with U.S., 1950 - 1990

English-speaking world jumps ahead, 1990 - 2000

India and China surge, 1995 - present

Latin America unstable

Africa and Arab world stuck

What Causes Prosperity?

20 % of differences in labor productivity due to capital, the rest due to "other"

Self-quiz on Growth

Pick ONE answer for each question. If you check more than one box on a question, it will be automatically marked wrong.

QuestionsAnswersMarks
1. What are the factors of production?
A) Money, Labor, Land, and Capital
B) Money, Labor, and Land
C) Labor, Land, and Capital
D) Land, Capital, and Resources 		A
B
C
D
2. In a lawnmowing business that uses gas-powered lawnmowers, a pickup truck and gasoline, what would be the capital of the business?
A) pickup truck
B) lawnmowers
C) pickup truck and lawnmowers
D) pickup truck, lawnmowers, and gasoline 		A
B
C
D
3. In a rent-buy comparison, what will make it more profitable to buy a house?
A) A lower price for the house
B) A higher interest rate
C) A lower rental rate
D) A better neighborhood 		A
B
C
D
4. Economists measure the average standard of living as
A) profitability of buying versus renting
B) real GDP per capita
C) total GDP
D) capital per worker 		A
B
C
D
5. Real GDP will grow when
A) nominal GDP grows faster than the price level
B) inflation is higher than nominal GDP
C) nominal GDP grows faster than population
D) not necessarily any of the above 		A
B
C
D
6. If real GDP grows faster than population, then
A) nominal GDP will decline
B) nominal GDP will grow faster than real GDP
C) growth will have to slow down
D) the standard of living will rise 		A
B
C
D
7. Between the year 500 BC and the year 2000, growth in per capita GDP was
A) steady and continuous
B) slow during the Middle Ages, but rapid before and after that
C) almost nonexistent until the past few hundred years
D) slightly faster in the past 100 years than in ancient times 		A
B
C
D
8. The inability of underdeveloped countries to make up the difference between their standard of living and that of the United States indicates that
A) rich countries exploit poor countries
B) poor countries would grow rapidly if they had more access to capital
C) poor countries have too much population
D) causal factors are at work that are more complex than standard economic analysis can account for 		A
B
C
D

Your overall grade: correct out of 8 possible. Note, this is for your own information. It will not affect your grade in the course.