TEST BANK PRINCIPLES OF ECONOMICS
CHAPTER 25(2025)
Production and Growth
Multiple Choice – Section 00: Introduction
1. The average income in a rich country, such as the United States or Japan, is more than
a. 3 times, but less than 5 times, the average income in a poor country, such as
Indonesia or Nigeria.
b. 5 times, but less than 10 times, the average income in a poor country, such as
Indonesia or Nigeria.
c. 10 times, but less than 20 times, the average income in a poor country, such as
Indonesia or Nigeria.
d. more than 20 times the average income in a poor country, such as Indonesia or Nigeria.
ANSWER: c
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.120 - LO: 25-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Thinking Like an Economist Overview of World Economy
KEYWORDS: BLOOM'S: Knowledge
2. The average income in a rich country
a. is about 5 times that in a poor country. Further, people in rich countries have
longer life expectancy.
b. is about 5 times that in a poor country. However, people in rich countries have about
the same life expectancy as those in poor countries.
c. is more than ten times that in a poor country. Further, people in rich countries have
longer life expectancy.
d. is more than ten times that in poor country. However, people in rich countries have
about the same life expectancy as those in poor countries.
ANSWER: c
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.120 - LO: 25-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Thinking Like an Economist Overview of World Economy
KEYWORDS: BLOOM'S: Knowledge
,6072 Production and Growth
3. Which of the following are residents of rich countries likely to have in greater quantities,
or better quality, than residents of poor countries?
a. housing
b. healthcare
c. life expectancy
d. All of the above.
ANSWER: d
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.120 - LO: 25-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Thinking Like an Economist Overview of World Economy
KEYWORDS: BLOOM'S: Knowledge
4. Over the past century in the United States, real GDP per person has grown, on average, by
about
a. 1 percent per year.
b. 2 percent per year.
c. 3 percent per year.
d. 5 percent per year.
ANSWER: b
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.120 - LO: 25-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Thinking Like an Economist Overview of US Economy
KEYWORDS: BLOOM'S: Knowledge
5. During the past century the average growth rate of U.S. real GDP per person
implies that it doubled, on average, about every
a. 100 years.
b. 70 years.
c. 35 years.
d. 25 years.
ANSWER: c
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.120 - LO: 25-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Thinking Like an Economist Overview of US Economy
KEYWORDS: BLOOM'S: Comprehension
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, Production and Growth 6073
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posted to a publicly accessible website, in whole or in part.
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, 6074 Production and Growth
6. Over the last century, U.S. real GDP per person grew at a rate of about
a. 2 percent per year, so that it is now 2 times as high as it was a century ago.
b. 2 percent per year, so that it is now 8 times as high as it was a century ago.
c. 4 percent per year, so that it is now 2 times as high as it was a century ago.
d. 4 percent per year, so that it is now 8 times as high as it was a century ago.
ANSWER: b
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.120 - LO: 25-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Thinking Like an Economist Overview of US Economy
KEYWORDS: BLOOM'S: Knowledge
7. In some East Asian countries, average income, as measured by real GDP per person, has
recently grown at an average annual rate that implies output will double about every
a. 10 years.
b. 15 years.
c. 20 years.
d. 25 years.
ANSWER: a
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.120 - LO: 25-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Thinking Like an Economist Overview of World Economy
KEYWORDS: BLOOM'S: Knowledge
8. A country experiencing a growth rate of 12% per year can go from being one of the
poorest to one of the richest in how many generations?
a. one
b. two
c. three
d. four
ANSWER: a
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.120 - LO: 25-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC : Growth Theory Growth
KEYWORDS: BLOOM'S: Knowledge
Downloaded by mary daniel ()
CHAPTER 25(2025)
Production and Growth
Multiple Choice – Section 00: Introduction
1. The average income in a rich country, such as the United States or Japan, is more than
a. 3 times, but less than 5 times, the average income in a poor country, such as
Indonesia or Nigeria.
b. 5 times, but less than 10 times, the average income in a poor country, such as
Indonesia or Nigeria.
c. 10 times, but less than 20 times, the average income in a poor country, such as
Indonesia or Nigeria.
d. more than 20 times the average income in a poor country, such as Indonesia or Nigeria.
ANSWER: c
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.120 - LO: 25-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Thinking Like an Economist Overview of World Economy
KEYWORDS: BLOOM'S: Knowledge
2. The average income in a rich country
a. is about 5 times that in a poor country. Further, people in rich countries have
longer life expectancy.
b. is about 5 times that in a poor country. However, people in rich countries have about
the same life expectancy as those in poor countries.
c. is more than ten times that in a poor country. Further, people in rich countries have
longer life expectancy.
d. is more than ten times that in poor country. However, people in rich countries have
about the same life expectancy as those in poor countries.
ANSWER: c
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.120 - LO: 25-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Thinking Like an Economist Overview of World Economy
KEYWORDS: BLOOM'S: Knowledge
,6072 Production and Growth
3. Which of the following are residents of rich countries likely to have in greater quantities,
or better quality, than residents of poor countries?
a. housing
b. healthcare
c. life expectancy
d. All of the above.
ANSWER: d
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.120 - LO: 25-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Thinking Like an Economist Overview of World Economy
KEYWORDS: BLOOM'S: Knowledge
4. Over the past century in the United States, real GDP per person has grown, on average, by
about
a. 1 percent per year.
b. 2 percent per year.
c. 3 percent per year.
d. 5 percent per year.
ANSWER: b
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.120 - LO: 25-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Thinking Like an Economist Overview of US Economy
KEYWORDS: BLOOM'S: Knowledge
5. During the past century the average growth rate of U.S. real GDP per person
implies that it doubled, on average, about every
a. 100 years.
b. 70 years.
c. 35 years.
d. 25 years.
ANSWER: c
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.120 - LO: 25-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Thinking Like an Economist Overview of US Economy
KEYWORDS: BLOOM'S: Comprehension
Downloaded by mary daniel ()
, Production and Growth 6073
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or
posted to a publicly accessible website, in whole or in part.
Downloaded by mary daniel ()
, 6074 Production and Growth
6. Over the last century, U.S. real GDP per person grew at a rate of about
a. 2 percent per year, so that it is now 2 times as high as it was a century ago.
b. 2 percent per year, so that it is now 8 times as high as it was a century ago.
c. 4 percent per year, so that it is now 2 times as high as it was a century ago.
d. 4 percent per year, so that it is now 8 times as high as it was a century ago.
ANSWER: b
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.120 - LO: 25-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Thinking Like an Economist Overview of US Economy
KEYWORDS: BLOOM'S: Knowledge
7. In some East Asian countries, average income, as measured by real GDP per person, has
recently grown at an average annual rate that implies output will double about every
a. 10 years.
b. 15 years.
c. 20 years.
d. 25 years.
ANSWER: a
DIFFICULTY: Difficulty: Moderate
LEARNING OBJECTIVES: ECON.MANK.15.120 - LO: 25-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC: Thinking Like an Economist Overview of World Economy
KEYWORDS: BLOOM'S: Knowledge
8. A country experiencing a growth rate of 12% per year can go from being one of the
poorest to one of the richest in how many generations?
a. one
b. two
c. three
d. four
ANSWER: a
DIFFICULTY: Difficulty: Easy
LEARNING OBJECTIVES: ECON.MANK.15.120 - LO: 25-0
NATIONAL STANDARDS: United States - BUSPROG: Analytic
TOPICS: DISC : Growth Theory Growth
KEYWORDS: BLOOM'S: Knowledge
Downloaded by mary daniel ()
