Page 1 of 156
ECON TEST EXAM TEST BANK THIS YEAR WITH
450 QUESTIONS AND WELL ELABORATED
ANSWERS JUST RELEASED
QUESTION: The rise in average living standards experience by most industrialized countries:
A. has been continuous over the course of human history
B. was more rapid before 1870 than after 1870
C. has been more rapid since 1950 than before 1950
D. has resulted primarily from an increase in population worldwide - ANSWER✔✔C
QUESTION: The long-run average annual growth of real GDP per person in the US is
approximately ________ percent.
A. one
B. two
C. five
D. seven - ANSWER✔✔B
QUESTION: Compound interest is:
, Page 2 of 156
A. the payment of interest on the original deposit
B. the interest rate adjusted for the rate of inflation
C. the real rate of interest compounded by the rate of inflation
D. the payment of interest on the original deposit as well as accumulated interest -
ANSWER✔✔D
QUESTION: If you left $2,500 on deposit with a bank promising to pay you a 6% compound
annual rate of interest, then after 50 years your deposit would be worth approximately:
A. $2,800
B. $18,420
C. $46,050
D. $250,750 - ANSWER✔✔C
QUESTION: Small differences in annual growth rates of real GDP generate large differences in
real GDP over time bc of the:
A. importance of average labor productivity
B. power of compound interest
C. diminishing returns to capital
D. limits of economic growth - ANSWER✔✔B
, Page 3 of 156
QUESTION: If an economy maintains a small rate of growth for a long period of time, then the
size of the economy:
A. can only increase a small amount
B. can increase by a large amount
C. can never double
D. will stay nearly constant - ANSWER✔✔B
QUESTION: If real GDP per person was equal to $2,000 in 1900 and grew at a 1% annual rate,
what would be the real value of GDP per person 100 years later?
A. $2,210
B. $4,000
C. $5,410
D. $20,000 - ANSWER✔✔C
QUESTION: They key indicator of a country's standard of living and economic well-being is:
A. the real interest rate
B. nominal GDP per person
C. real GDP
D. real GDP per person - ANSWER✔✔A
, Page 4 of 156
QUESTION: Compared to the level of real GDP per person in 1870, by 2008, real GDP in the US
was _______ times larger, while real GDP per person in Japan was _______.
A. 13; smaller
B. 13; 13 times larger
C. 13; 31 times larger
D.31; 13 times larger - ANSWER✔✔C
QUESTION: Over the period from 1950 to 2008, which country experienced the fastest average
annual growth rate of real GDP per person?
A. United States
B. Japan
C. China
D. Canada - ANSWER✔✔C
QUESTION: Growth in real GDP per capita has:
A. been steady over the course of human history
B. slowed since the mid-nineteenth century compared to before
C. been more rapid sine the mid-nineteenth century than before
D. increased over the last 150 years only in the US and Canada - ANSWER✔✔C
ECON TEST EXAM TEST BANK THIS YEAR WITH
450 QUESTIONS AND WELL ELABORATED
ANSWERS JUST RELEASED
QUESTION: The rise in average living standards experience by most industrialized countries:
A. has been continuous over the course of human history
B. was more rapid before 1870 than after 1870
C. has been more rapid since 1950 than before 1950
D. has resulted primarily from an increase in population worldwide - ANSWER✔✔C
QUESTION: The long-run average annual growth of real GDP per person in the US is
approximately ________ percent.
A. one
B. two
C. five
D. seven - ANSWER✔✔B
QUESTION: Compound interest is:
, Page 2 of 156
A. the payment of interest on the original deposit
B. the interest rate adjusted for the rate of inflation
C. the real rate of interest compounded by the rate of inflation
D. the payment of interest on the original deposit as well as accumulated interest -
ANSWER✔✔D
QUESTION: If you left $2,500 on deposit with a bank promising to pay you a 6% compound
annual rate of interest, then after 50 years your deposit would be worth approximately:
A. $2,800
B. $18,420
C. $46,050
D. $250,750 - ANSWER✔✔C
QUESTION: Small differences in annual growth rates of real GDP generate large differences in
real GDP over time bc of the:
A. importance of average labor productivity
B. power of compound interest
C. diminishing returns to capital
D. limits of economic growth - ANSWER✔✔B
, Page 3 of 156
QUESTION: If an economy maintains a small rate of growth for a long period of time, then the
size of the economy:
A. can only increase a small amount
B. can increase by a large amount
C. can never double
D. will stay nearly constant - ANSWER✔✔B
QUESTION: If real GDP per person was equal to $2,000 in 1900 and grew at a 1% annual rate,
what would be the real value of GDP per person 100 years later?
A. $2,210
B. $4,000
C. $5,410
D. $20,000 - ANSWER✔✔C
QUESTION: They key indicator of a country's standard of living and economic well-being is:
A. the real interest rate
B. nominal GDP per person
C. real GDP
D. real GDP per person - ANSWER✔✔A
, Page 4 of 156
QUESTION: Compared to the level of real GDP per person in 1870, by 2008, real GDP in the US
was _______ times larger, while real GDP per person in Japan was _______.
A. 13; smaller
B. 13; 13 times larger
C. 13; 31 times larger
D.31; 13 times larger - ANSWER✔✔C
QUESTION: Over the period from 1950 to 2008, which country experienced the fastest average
annual growth rate of real GDP per person?
A. United States
B. Japan
C. China
D. Canada - ANSWER✔✔C
QUESTION: Growth in real GDP per capita has:
A. been steady over the course of human history
B. slowed since the mid-nineteenth century compared to before
C. been more rapid sine the mid-nineteenth century than before
D. increased over the last 150 years only in the US and Canada - ANSWER✔✔C
