If one wants to know how the material well-being of the average person has changed over time in a given country, which of the following should one look at?A. the level of real GDPB. the growth rate of nominal GDPC. the growth rate of real GDPD. the growth rate of real GDP per person


Over the past century in Canada, by how much has average income as measured by real GDP per person grown?A. about 3.5 percent per year, which implies a doubling about every 20 yearsB. about 2 percent per year, which implies a doubling about every 35 yearsC. about 4 percent per year, which implies a doubling about every 17.5 yearsD. about 1 percent per year, which implies a doubling about every 70 years


Which of the following statements best describes the relationship between the initial wealth and the growth rate of a country?A. Countries with the highest growth rates over the last 100 years are the ones that had the highest level of real GDP 100 years ago.B. Countries that were rich a century ago had little fluctuation around their average growth rates during the past 100 years.C. Though the catch-up effect may suggest otherwise, the data show no strong relationship between initial conditions and growth rates.D. Over the last 100 years, Japan had the highest real GDP growth rate, and now it has the highest real GDP per person.

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How is a nation"s standard of living determined?A. by its productivityB. by its gross domestic productC. by its national incomeD. by how much it has relative to others


Which of the following is a correct way to measure productivity?A. divide the number of hours worked by outputB. divide output by the number of hours workedC. compute output growthD. divide the change in output by the change in number of hours worked


Laurie works 8 hours and produces 7 units of goods per hour. Iris works 6 hours and produces 10 units of goods per hour. Which of the following can we conclude?A. Laurie’s productivity and output are greater that Iris’s.B. Laurie’s productivity is greater than Iris’s, but Laurie’s output is less.C. Iris’s productivity and output are greater than Laurie’s.D. Iris’s productivity is greater that Laurie’s, but Iris’s output is less.


Which of the following would be considered physical capital?A. the pizza oven at the Liquidity Preferences TavernB. soy beans used to make soy milkC. the skills and knowledge of a barberD. the number of hours people spend in the gym


Jessica Smith is a teacher. Which of the following is a part of her human capital?A. her work experienceB. the textbooks she usesC. the software she uses when delivering her lecturesD. the amount of time she spends with her students


In the country of Krypton, the price of lead increased from $20 per kilogram to $22 per kilogram during a time when the overall price level increased by 8 percent. During this period, what happened to the real price of lead?A. It increased.B. It decreased.C. It stayed the same.D. It might have increased, decreased, or stayed the same; more information is needed to be sure.


Suppose that real GDP grew more in Country A than in Country B last year. Which of the following does this imply concerning productivity or standard of living?A. Country A must have a higher standard of living than country B.B. Country A"s productivity must have grown faster than country B"s.C. Country A must have a higher real GDP than Country B.D. Country A"s productivity must have been higher only if the population in the two countries grew at the same


How can a government encourage growth and, in the long run, raise the country’s economic standard of living?A. by encouraging population growthB. by encouraging consumptionC. by encouraging saving and investmentD. by increasing government spending


What is the effect of a higher saving rate in the long run?A. It decreases the capital stock.B. People must consume less in the future.C. It increases productivity.D. It leads to higher growth in real GDP.


Suppose a country were to increase its saving rate. In the long run, which of the following would also increase?A. its level of incomeB. its growth rate of incomeC. its growth rate of productivityD. its growth rate in capital stock


Suppose that there are diminishing returns to capital. Suppose also that two countries are the same except one has less capital and so less real GDP per person. Suppose that both increase their saving rate from 3 percent to 4 percent. Which of the following will happen in the long run?A. Both countries will have permanently higher growth rates of real GDP per person, and the growth rate will be higher in the country with more capital.B. Both countries will have permanently higher growth rates of real GDP per person, and the growth rate will be higher in the country with less capital.C. Both countries will have higher levels of real GDP per person, and the temporary increase in growth in the level of real GDP per person will have been greater in the country with more capital.D. Both countries will have higher levels of real GDP per person, and the temporary increase in growth in the level of real GDP per person will have been greater in the country with less capital.


Which of the following is consistent with the catch-up effect?A. The United States had a lower growth rate before 1900 than after.B. Japan has a higher growth rate than Germany.C. Although Canada has a relatively high level of output per person, its growth rate is still high compared to some poorer countries, such as Pakistan.D. After World War II, Canada had lower growth rates than war-ravaged European countries.


In the 1800s, Europeans purchased stock in Canadian companies, which used the funds to build railroads and factories. What type of investments did the Europeans make?A. foreign portfolio investmentsB. indirect domestic investmentsC. foreign direct investmentsD. foreign indirect investments


Which of the following is generally an opportunity cost of investment in human capital?A. future job securityB. forgone wages at presentC. increased earning potentialD. the costs of living during the years of school


Which of the following terms refers to institutions that help to match one person"s saving with another person"s investment?A. the Bank of CanadaB. the banking systemC. the monetary systemD. the financial system


Which of the following terms refers to a certificate of indebtedness that specifies the obligations of the borrower to the holder?A. bondB. stockC. mutual fundD. savings plan


Suppose Microsoft sells a bond. What is the company doing?A. borrowing directly from the publicB. borrowing indirectly from the publicC. lending directly to the publicD. lending indirectly to the public


What is the face value of a bond?A. the market price of the bondB. the difference between the amount owned by the issuer and the market price of the bondC. the amount owned by the issuerD. the interest earned by the owner of the bond


Which of the following terms refers to the length of time until a bond matures?A. durationB. termC. maturityD. intermediation


Which of the following is a characteristic of the bond market?A. Some bonds have terms as short as a few months.B. Because they are risky, bonds pay a low rate of interest.C. Corporations buy bonds to raise funds.D. Bonds are rarely used as financial instruments.


Assuming that other things remain the same, what will happen to the interest on a bond as the bond"s maturity increases?A. As maturity increases, the bond will have less interest because it has less risk.B. As maturity increases, the bond will have less interest because it has more risk.C. As maturity increases, the bond will have more interest because it has more risk.D. There is no relation between term to maturity and risk.


Stephanie is interested only in the rate of interest and is willing to take a great deal of risk in exchange for a high return. Which of the following bonds she should look for?A. federal bonds with short termsB. provincial bonds with long termsC. corporate bonds with short termsD. corporate bonds with long terms


Papa Mario"s Pizza Company sells common stock. What type of financing are they using?A. They are using equity financing and the return shareholders earn is fixed.B. They are using equity financing and the return shareholders earn depends on how profitable the company is.C. They are using debt financing and the return debt holders earn is fixed.D. They are using debt financing and the return debt holders earn depends on how profitable the company is.


If Huedepool Beer runs into financial difficulty, how are bondholders and shareholders paid?A. Shareholders are paid before bondholders.B. Shareholders are paid after bondholders.C. Shareholders and bondholders are paid proportional shares of the company’s assets.D. Shareholders receive all the company’s assets.


Which of the following people purchased the correct asset to meet their objective?A. Michelle wanted to be a part owner of Mamma Rosa"s Pizza, so she purchased a bond issued by Mamma Rosa"s Pizza.B. Tim wanted a high return, even if it meant taking some risk, so he purchased stock issued by Specific Electric instead of bonds issued by Specific Electric.C. Jennifer wanted to buy equity in Honda, so she purchased bonds sold by Honda.D. George wanted to lend money at a specified rate of interest to Research In Motion (RIM), so he purchased RIM stock.

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Which of the following determines the price of stocks traded on exchanges?A. the Corporate Stock AdministrationB. the NASDAQC. the supply and demand for the stockD. the Montreal Stock Exchange


World Wide Delivery Service Corporation develops a way to speed up its deliveries and reduce its costs. Which of the following would we expect?A. This would raise the demand for existing shares of the stock, causing its price to rise.B. This would decrease the demand for existing shares of the stock, causing its price to fall.C. This would raise the supply of the existing shares of stock, causing its price to rise.D. This would raise the supply of the existing shares of stock, causing its price to fall.


A


Decks in ECON 1020 Class (3):


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