Tackle the Test: Multiple-Choice Questions

1. Question

   Which of the following is true regarding growth rates for countries around the world compared to the United States?

   
   

   
   

   1. More than fifty percent of the world’s people live in countries with a lower standard of living than the U.S. had a century ago.

      
      
   
   

   2. The U.S. growth rate is six times the growth rate in the rest of the world.

      
      
   
   

   3. China has only recently attained the same standard of living the U.S. had a century ago.
      

      
      
   
   

   A.

   I only

   B.

   II only

   C.

   III only

   D.

   I and III only

   E.

   I, II, and III

   Which of the following is true regarding growth rates for countries around the world compared to the United States?

2. Question

   Which of the following is the key statistic used to track economic growth?

   A.

   GDP

   B.

   real GDP

   C.

   real GDP per capita

   D.

   median real GDP

   E.

   median real GDP per capita

   Which of the following is the key statistic used to track economic growth?

3. Question

   According to the “Rule of 70,” if a country’s real GDP per capita grows at a rate of 2% per year, it will take how many years for real GDP per capita to double?

   A.

   3.5

   B.

   20

   C.

   35

   D.

   70

   E.

   It will never double at that rate.

   According to the “Rule of 70,” if a country’s real GDP per capita grows at a rate of 2% per year, it will take how many years for real GDP per capita to double?

4. Question

   If a country’s real GDP per capita doubles in 10 years, what was its average annual rate of growth of real GDP per capita?

   A.

   3.5%

   B.

   7%

   C.

   10%

   D.

   70%

   E.

   700%

   If a country’s real GDP per capita doubles in 10 years, what was its average annual rate of growth of real GDP per capita?

5. Question

   Long-run economic growth depends almost entirely on

   A.

   technological change.

   B.

   rising productivity.

   C.

   increased labor force participation.

   D.

   rising real GDP per capita.

   E.

   population growth.

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