Chapter 26, Economic Growth Video Solutions, Economics: Principles, Problems, and Policies

00:00

Problem 1

If real GDP grows at 7 percent per year, then real GDP will double in approximately _____ years.
a. 70
b. 14
c. 10
d. 7

Zewei Lei

Lehigh University

03:27

Problem 2

In 1820 living standards in various places around the globe were _____ they are today.
a. More widely varying than.
b. Just as widely varying as.
c. Less widely varying than.

Dennis Howard

Numerade Educator

01:04

Problem 3

True or False: Countries that currently have low real GDPs per capita are destined to always have lower living standards than countries that currently have high real GDPs per capita.

Nick Johnson

Numerade Educator

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Identify each of the following situations as something that either promotes growth or retards growth.
a. Increasing corruption allows government officials to steal people's homes.
b. A nation introduces patent laws for the first time.
c. A court order shuts down all banks permanently.
d. A poor country extends free public schooling from 8 years to 12 years.
e. A nation adopts a free-trade policy.
f. A formerly communist country adopts free markets.

Oluwadamilola Ameobi

Numerade Educator

01:26

Problem 5

Real GDP equals _____ times _____.
a. Average hours of work; quantity of capital.
b. Average hours of work; allocative efficiency.
c. Labor input; labor productivity.
d. Natural resources; improvements in technology.

Oluwadamilola Ameobi

Numerade Educator

01:07

Problem 6

Suppose that just by doubling the amount of output that it produces each year, a firm's per-unit production costs fall by 30 percent. This is an example of:
a. Economies of scale.
b. Improved resource allocation.
c. Technological advance.
d. The demand factor.