BUS 313 - Midterm 1 Question and
answers correctly solved 2026
GDP? - correct answer ✔The market value of all final goods and services produced within a country in
a given time period
How can the world economy be calculated? What was the world economy in 2015? - correct answer
✔Sum of GDP for each country.
* Estimated at $80 trillion in 2015
What is the size of the underground economy in developing, transition, and OECO economies? - correct
answer ✔Developing - 35-44%
Transition - 20-30%
OECO - 10-15%
What is the world bank? - correct answer ✔Multilateral institution that makes loans to developing
countries to enhance economic development
GDP vs. GNP: - correct answer ✔GDP is geographically defined, while GNP is by country's residents
What is the dollar amount associated with low, lower middle, upper middle, and high income level? -
correct answer ✔Low : $1005 or less
Lower-middle:$1006-$3955 per year
Upper-middle: $3956-$12,235
High: $12,236 and above
What is the avg. life expectancy per income category? - correct answer ✔Low: 57 years
, Lower-middle: 66
Upper-middle: 72
High: 80
What are 3 reasons some economies develop successfully and others experience chronic poverty? -
correct answer ✔Geography, presence/absence of institutions, sufficient/insufficient human capital
*** All three causes are interdependent
Jared Diamond's Guns, Germs, and Steel: What does 'Germs' and 'Steel' symbolize? - correct answer
✔Germs: Disease
Steel: Tech
Why are transmissions of same ideas easier along common latitudes? - correct answer ✔Because they
share same climate conditions (this is easier than going from north to south)
What are the three pillars of the economy (book)? - correct answer ✔1. Output
2. Money
3. Expectations
What is Asia's share of the GDP? (Percent) - correct answer ✔35%, by 2030 it is predicted to be 40%
What are four challenges that China is facing? - correct answer ✔1. Rapid growth by exports, but also
through over investment financed by questionable loans
2. Aging population
3. Living standards are rising, Cheap labor will diminish
4. Transition from exports to consumption
answers correctly solved 2026
GDP? - correct answer ✔The market value of all final goods and services produced within a country in
a given time period
How can the world economy be calculated? What was the world economy in 2015? - correct answer
✔Sum of GDP for each country.
* Estimated at $80 trillion in 2015
What is the size of the underground economy in developing, transition, and OECO economies? - correct
answer ✔Developing - 35-44%
Transition - 20-30%
OECO - 10-15%
What is the world bank? - correct answer ✔Multilateral institution that makes loans to developing
countries to enhance economic development
GDP vs. GNP: - correct answer ✔GDP is geographically defined, while GNP is by country's residents
What is the dollar amount associated with low, lower middle, upper middle, and high income level? -
correct answer ✔Low : $1005 or less
Lower-middle:$1006-$3955 per year
Upper-middle: $3956-$12,235
High: $12,236 and above
What is the avg. life expectancy per income category? - correct answer ✔Low: 57 years
, Lower-middle: 66
Upper-middle: 72
High: 80
What are 3 reasons some economies develop successfully and others experience chronic poverty? -
correct answer ✔Geography, presence/absence of institutions, sufficient/insufficient human capital
*** All three causes are interdependent
Jared Diamond's Guns, Germs, and Steel: What does 'Germs' and 'Steel' symbolize? - correct answer
✔Germs: Disease
Steel: Tech
Why are transmissions of same ideas easier along common latitudes? - correct answer ✔Because they
share same climate conditions (this is easier than going from north to south)
What are the three pillars of the economy (book)? - correct answer ✔1. Output
2. Money
3. Expectations
What is Asia's share of the GDP? (Percent) - correct answer ✔35%, by 2030 it is predicted to be 40%
What are four challenges that China is facing? - correct answer ✔1. Rapid growth by exports, but also
through over investment financed by questionable loans
2. Aging population
3. Living standards are rising, Cheap labor will diminish
4. Transition from exports to consumption
