Q1. If a nation’s real GDP is growing at 7% per year, its real output will double in approximately 02. If real GDP was $12,00 billion in year 1 and $12,800 billion in year 2 the approximate rate of economic growth from year 1 to year 2 is Q3. Which of the following sources of economic growth is a demand-side factor? a. Higher spending on rising output c. Utilizing resources in the least costly way d. Increases in the quantity of human resources b. Improved technology Q4. Total real output can be determined by: a. multiplying total hours of work times labor productivity b.multiplying total wages paid times output per hour of work c. dividing total wages paid by labor productivity d. dividing total hours of work by labor productivity 8 Last year Sophia’s nominal income increased by 10% while the price level rose by 7%. Consequently, Sophia’s real income 9, The CPI is currently 144; a year ago it was 136. The rate of inflation overthe past year was-ãƒ¼ãƒ¼ãƒ¼ãƒ¼ãƒ¼ãƒ¼ãƒ¼ãƒ¼ãƒ¼ãƒ¼ãƒ¼ 10. International specialization takes place because of A. differences in technology B. differences in factor endowments C.scale economies D all of the above Q11A International differences in opportunity costs lead to countries acquiring A. comparative advantage B. high exchange rates B. relative factor mobility C.relative factor substitution D. relative factor endowments B. there was litle corporate control C.
vitalinfrastructure was missing D.all C. trade barriers D. trade quotas 011B. The main cause of different relative costs between countries are A. relative factor competition Q12A. Output fell sharply in the transition economies because A banks were unable to function Q12B. The level of the equilibrium exchange rate offsets international differences i A. B. absolute advantage C. opportunity cost A TRUE D. relative costs 013A. (T/F) International trade can never hurt any people. B. FALSE Q13B. All of the following represent obstacles to Less Developed Countries LDC) development except A resource scarcity B. low levels of investment C. low population Dpor infrastructure E. poor human capital 014. LDCs often have a comparative advantage in the producudtsD. rancial services A. primary products B. Intermediate products C. Manufactured productsD.financial services Q15. LDCs are reluctant to pursue development through the export of primary products because of A the upward trend in commodity prices, the stability of primary products real prices B. the upward trend in commodity prices, the volatility of primary products real prices C. the downward trend in commodity prices, the stability of primary products real prices D. the downward trend in commodity prices, the volatility of primary products real prices and- 16. Potential output can be increased by increasing the use of labor, increasing the use of land increasing the use of land, increasing the use of capital B. increasing the use of capital, increasing the use of labor D.
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