11. modern economic growth has caused
a. substantial inflation in domestic economies.
b. a divergence in living standards between rich and poor countries.
c. per-capita gdp growth in developing nations that has exceeded other countries like japan and the united states.
d. substantial increases in the quality of life in nations like north korea and burundi.
12. is the value of all goods in an economy using current prices during the year that they were produced.
a. nominal income
b. real gdp
c. real income
d. nominal gdp
13. which one of the following would not be expected to increase labor productivity?
a. an increase in the size of the labor force
b. the acquisition of more education and training by the labor force
c. the realization of economies of scale
d. technological advance
14. if the united states imports $10 million worth of goods from the philippines, but the philippines buys only $5 million worth of us goods, america's net exports are
a. negative $10 million.
b. negative $5 million.
c. positive $5 million.
d. positive $10 million.
15. if the prices of all goods and services rose, but the quantity produced remained unchanged, what would happen to nominal and real gdp?
a. nominal and real gdp would both be unchanged.
b. nominal and real gdp would both rise.
c. nominal gdp would rise, but real gdp would be unchanged.
d. real gdp would rise, but nominal gdp would be unchanged.
16. which one of the following statements about demand-pull inflation is correct?
a. demand-pull inflation occurs when total spending exceeds the economy's ability to provide output at the existing price level.
b. demand-pull inflation is also called cost-push inflation.
c. demand-pull inflation occurs only when the economy has reached its absolute production capacity.
d. demand-pull inflation occurs when prices of resources rise, pushing up costs and the price level.
17. suppose the total monetary value of all final goods and services produced in a particular country in 2008 is $500 billion and the total monetary value of final goods and services sold is $450 billion. we can conclude that
a. ndp in 2008 is $450 billion.
b. gdp in 2008 is $500 billion.
c. inventories in 2008 fell by $50 billion.
d. gdp in 2008 is $450 billion.
18. by summing the dollar value of all market transactions in the economy, you would
a. determine value added for the economy.
b. measure gdp.
c. obtain a sum substantially larger than the gdp.
d. determine the market value of all resources used in the production process.
19. unemployment involving a mismatch of the skills of unemployed workers and the skills required for available jobs is called unemployment.
a. compositional
b. structural
c. frictional
d. cyclical
20. strong property rights are important for modern economic growth because
a. people are less likely to invest if they're fearful that others can take their returns on investment without compensation.
b. they allow governments to extract the gains from private citizens' investments.
c. business cycle fluctuations will be smaller and less likely to disrupt investment patterns.
d. they ensure an equitable distribution of income.