ECON 104 Bille Goffe Final Exam
Questions Reviewed And Revised
With Correct Answers
1) Which of the following compares prices in one year to prices
in a base year (or period)?
-real GDP and the GDP deflator
-nominal GDP and real GDP
-the CPI and nominal GDP
-the GDP deflator and the CPI - ANSWER the GDP deflator
and the CPI
2) How much did your real wage grow if your nominal wage
grew by 5% and the CPI grew by 2%?
-5%
-2%
-7%
-3% - ANSWER 3%
,3) Which tracks the LEAST number of goods and services?
-the GDP deflator
-the core CPI
-the headline CPI - ANSWER the core CPI
4) Which would you need if you wished to calculate economic
growth?
-the GDP deflator
-real GDP
-nominal GDP
-the CPI - ANSWER real GDP
5) According to the material presented in class, it seems that in
recent decades innovation has ____.
-slowed down
-speeded up - ANSWER slowed down
6) Which would be the best example of creative destruction?
-someone going to college to earn a higher wage
-the government banning specific goods
,-word processing software replacing typewriters - ANSWER
word processing software replacing typewriters
7) In 2000, real GDP in a country was $20 trillion and the GDP
deflator was 100. In 2020, real GDP was $28 trillion and the
GDP deflator was 120. What would be the average annual rate
of economic growth from 2000 to 2020? Note that ^ is the
symbol for an exponent.
-((28 - 20)/20) • 100
-((120 - 100)/100)) • 100
-((120/100)^(1/20) -1) • 100
-((28/20)^(1/20) -1) • 100 - ANSWER ((28/20)^(1/20) -1) •
100
8) Which is most likely to help a country grow in today's world?
-the government regulating prices in the county
-abundant natural resources in the country
-strong institutions in the country - ANSWER strong
institutions in the country
9)1 Which is the best example of an institution?
-a country's legal system
, -the use of markets in a country
-the amount of capital in a country
-the number of workers in a country - ANSWER a country's
legal system
10) According to one of the assigned articles, food banks found
that markets help them better allocate donations they
received.
-true
-false - ANSWER true
Which of the following would be most likely to lead to
economic growth over a century?
-increases in technology
-increases in K/L
-increases in the fraction of the population that works -
ANSWER increases in technology
What growth rates can the Rule of 70 be applied to?
-just the CPI
-the growth rate of any variable
Questions Reviewed And Revised
With Correct Answers
1) Which of the following compares prices in one year to prices
in a base year (or period)?
-real GDP and the GDP deflator
-nominal GDP and real GDP
-the CPI and nominal GDP
-the GDP deflator and the CPI - ANSWER the GDP deflator
and the CPI
2) How much did your real wage grow if your nominal wage
grew by 5% and the CPI grew by 2%?
-5%
-2%
-7%
-3% - ANSWER 3%
,3) Which tracks the LEAST number of goods and services?
-the GDP deflator
-the core CPI
-the headline CPI - ANSWER the core CPI
4) Which would you need if you wished to calculate economic
growth?
-the GDP deflator
-real GDP
-nominal GDP
-the CPI - ANSWER real GDP
5) According to the material presented in class, it seems that in
recent decades innovation has ____.
-slowed down
-speeded up - ANSWER slowed down
6) Which would be the best example of creative destruction?
-someone going to college to earn a higher wage
-the government banning specific goods
,-word processing software replacing typewriters - ANSWER
word processing software replacing typewriters
7) In 2000, real GDP in a country was $20 trillion and the GDP
deflator was 100. In 2020, real GDP was $28 trillion and the
GDP deflator was 120. What would be the average annual rate
of economic growth from 2000 to 2020? Note that ^ is the
symbol for an exponent.
-((28 - 20)/20) • 100
-((120 - 100)/100)) • 100
-((120/100)^(1/20) -1) • 100
-((28/20)^(1/20) -1) • 100 - ANSWER ((28/20)^(1/20) -1) •
100
8) Which is most likely to help a country grow in today's world?
-the government regulating prices in the county
-abundant natural resources in the country
-strong institutions in the country - ANSWER strong
institutions in the country
9)1 Which is the best example of an institution?
-a country's legal system
, -the use of markets in a country
-the amount of capital in a country
-the number of workers in a country - ANSWER a country's
legal system
10) According to one of the assigned articles, food banks found
that markets help them better allocate donations they
received.
-true
-false - ANSWER true
Which of the following would be most likely to lead to
economic growth over a century?
-increases in technology
-increases in K/L
-increases in the fraction of the population that works -
ANSWER increases in technology
What growth rates can the Rule of 70 be applied to?
-just the CPI
-the growth rate of any variable
