Comparative Gdp MCQs

Option A: 3.1 percent

Option B: 3.0 percent

Option C: 18.6 percent

Option D: 18.0 percent

Correct Answer: 3.1 percent ✔

Option A: increase expenditure on public education

Option B: eliminate civil war

Option C: All of these answers would increase growth

Option D: increase restrictions on the importing of American tractors and electronics

Correct Answer: increase restrictions on the importing of American tractors and electronics ✔

Option A: how hard we work:

Option B: our supply of capital because everything of value is produced by machinery

Option C: our productivity because our income is equal to what we produce

Option D: our supply of natural resources because they limit production

Correct Answer: our productivity because our income is equal to what we produce ✔

Option A: Productivity growth has been steady over the last 50 years

Option B: Productivity has been growing more slowly every decade since world War II

Option C: Productivity grew quickly in the 1950s and 1960s more slowly from the early 1970s through 1995 and then quickly again

Option D: Productivity grew slowly from the 1950s through the 1970s and then began to accelerate probably due to advances in computer technology

Correct Answer: Productivity grew quickly in the 1950s and 1960s more slowly from the early 1970s through 1995 and then quickly again ✔

Option A: There is no evidence, yet that rapid population growth stretches natural resources to the point that it limits growth in productivity

Option B: All of these answers

Option C: Rapid population growth may dilute the capital stock lowering productivity

Option D: Rapid population growth may promote technological progress increasing productivity.

Correct Answer: All of these answers ✔

Option A: doubling all of the inputs more than doubles output due to the catch-up effect

Option B: doubling all of the inputs has absolutely no impact on output because output is constant

Option C: doubling all of the inputs less than doubles output due to diminishing returns

Option D: doubling all of the input’s doubles output

Correct Answer: doubling all of the input’s doubles output ✔

Option A: labor

Option B: physical capital/worker

Option C: human capital/worker

Option D: natural resources/worker

Correct Answer: labor ✔

Option A: it no longer needs any human capital

Option B: capital becomes more productive due to the “catch-up- effect”

Option C: none of these answers

Option D: it may be harder for it to grow quickly because of the diminishing returns to capital

Correct Answer: it may be harder for it to grow quickly because of the diminishing returns to capital ✔

Option A: They save and invest an unusually high percentage of their GDP

Option B: They have always been wealthy and will continue to be wealthy, which is known as the “snowball effect”

Option C: They are imperialists and have collected wealth from previous victories in war

Option D: They have enormous natural resources.

Correct Answer: They save and invest an unusually high percentage of their GDP ✔

Option A: encourage foreigners to investment in your country

Option B: encourage saving and investment

Option C: nationalize major industries

Option D: encourage research and development

Correct Answer: nationalize major industries ✔

Option A: Megabank buys a new computer

Option B: Naila pays her university tuition fees.

Option C: OGDC leases a new oil field

Option D: Indus Motors buys a new drill press

Correct Answer: Naila pays her university tuition fees. ✔

Option A: None of these answers

Option B: There has been an increase in foreign portfolio investment in the UK

Option C: Once the plant starts producing cars UK GDP will rise less than UK GNP

Option D: once the plant starts producing cars UK GDP will rise more than UK GNP

Correct Answer: once the plant starts producing cars UK GDP will rise more than UK GNP ✔

Option A: Toyota builds a new plant in the north of England

Option B: EDF of France buys shares in Scottish & Southern Energy of the UK, and Scottish & Southern Energy uses the Proceeds to build a new hydro-electric power station in Scotland

Option C: Deutsche Bank of Germany buys some new software from UK Supplier

Option D: JCB builds a new plant near Manchester

Correct Answer: EDF of France buys shares in Scottish & Southern Energy of the UK, and Scottish & Southern Energy uses the Proceeds to build a new hydro-electric power station in Scotland ✔

Option A: A farmer sends his child to agricultural college and the child returns to work on the farm

Option B: A farmer hires another day laborer

Option C: A farmer buys another tractor

Option D: A farmer discovers that it is better to plant in the spring rather than in the fall

Correct Answer: A farmer discovers that it is better to plant in the spring rather than in the fall ✔

Option A: none of these answers

Option B: an ever-increasing population is constrained only by the food supply resulting in chronic faminies

Option C: technological progress will continuously generate improvement in productivity and living standards.

Option D: labor is the only true factor of production

Correct Answer: an ever-increasing population is constrained only by the food supply resulting in chronic faminies ✔

Option A: a renewable natural resource

Option B: physical capital

Option C: technology

Option D: a non-renewable natural resource

Correct Answer: a non-renewable natural resource ✔

Option A: Countries all have the same growth rate and level of output because any country can obtain the same factors of production

Option B: Countries have great variance in both the level and growth rate of GDP/person thus poor countries can become relatively rich over time

Option C: Countries may have different level of GDP/person but they all grow at the same reate

Option D: Countries may have a different growth rate but they all have the same level of GDP/person

Correct Answer: Countries have great variance in both the level and growth rate of GDP/person thus poor countries can become relatively rich over time ✔

Option A: a reduction in current investment

Option B: a reduction in current consumption

Option C: a reduction in taxes

Option D: a reduction in current saving

Correct Answer: a reduction in current consumption ✔

Option A: it is doomed to being relatively poor forever

Option B: none of these answers

Option C: an increase in capital will likely have little impact on output

Option D: it has the potential to grow relatively quickly due to the “catch-up-effect”

Correct Answer: D. it has the potential to grow relatively quickly due to the “catch-up-effect” ✔

Option A: real GDP per person

Option B: nominal GDP per person.

Option C: Real GDP

Option D: The growth rate of nominal GDP per person

Correct Answer: real GDP per person ✔