SOLVED

14.1  Long-Run Economic Growth 1) Which of the following statements describes the experiences of the Boeing Corporation since it was established in 1916? A) strong uninterrupted growth in demand B) strong growth interrupted by periods of business cycle recession C) little or no growth in the long run, and unaffected by the business cycle D) little or no growth in the long run, but very vulnerable to the business cycle 2) Technological advances generally result in A) decreased incomes. B) increased life expectancy. C) increased infant mortality rates. D) increased average number of hours worked per day. 3) A good measure of the standard of living is A) real GDP per capita. B) nominal GDP per capita. C) total real GDP. D) total nominal GDP. 4) Since 1900, real GDP per capita has ________ and this measure ________ the actual growth in standards of living in the United States over this time. A) increased; understates B) increased; overstates C) decreased; understates D) decreased; overstates 5) Since 1900, real GDP in the United States has grown A) more rapidly than the population. B) more slowly than the population. C) as rapidly as the population. D) in a random unpredictable manner relative to the population. 6) If real GDP per capita measured in 2000 dollars was $6,000 in 1950 and $48,000 in 2010, we would say that in the year 2010, the average American could buy ________ times as many goods and services as the average American in 1950. A) 1/8 B) 4 C) 8 D) 12 7) If real GDP in a small country in 2010 is $8 billion and real GDP in the same country in 2011 is $8.3 billion, the growth rate of real GDP between 2010 and 2011 A) is 3.0%. B) is 3.6%. C) is 3.75%. D) cannot be determined from the information given. 8) If real GDP per capita doubles between 2005 and 2020, what is the average annual growth rate of real GDP per capita? A) 4.7% B) 10.5% C) 15% D) 21% 9) If you invest $10,000 in a bond that earns 8% interest per year, how many years will it take to double your money? A) 1 year and 3 months B) 2 years and 6 months C) 8 years D) 8 years and 9 months 10) If the growth rate of real GDP rises from 3% to 4% per year, then the number of years required to double real GDP will decrease from   A) 23.3 years to 17.5 years. B) 28.0 years to 21.0 years. C) 11.2 years to 10.8 years. D) 23.3 years to 20.6 years.    1