Contents
- 1 Which of the following is an accurate explanation of why the average American today is richer than the richest American 100 years ago?
- 2 Which of the following measures how the level of well being in a country has changed over time?
- 3 Which of the following best describes the response of output as time passes to an increase in the saving rate?
- 4 What are the long term impacts on living standards and growth rates of an increase in the economy’s saving rate?
- 5 Which of the following countries has the highest level of real GDP per person in 2014?
- 6 What was the richest country in 1870?
- 7 Why GDP is a poor measure of progress?
- 8 Why is GDP an inappropriate measure of well-being?
- 9 Why GDP is not a good measure of development?
- 10 What is a determinant of productivity?
- 11 How can GDP be calculated?
- 12 Which of the following is the best indicator of standard of living?
- 13 How does an increase in savings rate affect economic growth?
- 14 What happens when a country increases its saving rate?
- 15 What are the 4 factors of economic growth?
Which of the following is an accurate explanation of why the average American today is richer than the richest American 100 years ago?
Which of the following is an accurate explanation of why the average American today is “richer” than the richest American 100 years ago? Tremendous technological advances. The historic data show that the world’s richest countries have no guarantee they will stay the richest.
Which of the following measures how the level of well being in a country has changed over time?
Which of the following measures how the level of well–being in a country has changed over time? growth rate of real GDP per person.
Which of the following best describes the response of output as time passes to an increase in the saving rate?
Which of the following best describes the response of output as time passes to an increase in the saving rate? The growth rate of output increases, but diminishes to its former level as time passes.
What are the long term impacts on living standards and growth rates of an increase in the economy’s saving rate?
7. (a) An increase in the saving rate increases long–run living standards, as higher saving allows for more investment and a larger capital stock.
Which of the following countries has the highest level of real GDP per person in 2014?
Gross domestic product per capita is sometimes used to describe the standard of living of a population, with a higher GDP meaning a higher standard of living. In 2014, Luxembourg, Norway, Qatar, and Switzerland reported the highest gross domestic product per capita worldwide, as can be seen in this statistic.
What was the richest country in 1870?
In 1870, the United Kingdom was the richest country in the world.
Why GDP is a poor measure of progress?
1. GDP Doesn’t Include Increases to Standards of Living. One supposed flaw within GDP calculations is that measuring solely by price inherently undervalues certain products by discounting their contributions to overall productivity and standards of living.
Why is GDP an inappropriate measure of well-being?
GDP is an inappropriate measure of well–being because it doesn’t incorporate some important factors including illegal or black market activity, environmental activities, in home activities (domestic), and leisure activities. These all impact the well–being which are not accounted for in GDP.
Why GDP is not a good measure of development?
Environmental degradation is a significant externality that the measure of GDP has failed to reflect. GDP also fails to capture the distribution of income across society – something that is becoming more pertinent in today’s world with rising inequality levels in the developed and developing world alike.
What is a determinant of productivity?
The four determinants of productivity are: (1) Physical capital, which is the stock of equipment and structures that are used to produce goodsand services; (2) Human capital, which consists of the knowledge and skills that workers acquire througheducation, training, and experience; (3) Natural resources, which are
How can GDP be calculated?
Written out, the equation for calculating GDP is: GDP = private consumption + gross investment + government investment + government spending + (exports – imports). For the gross domestic product, “gross” means that the GDP measures production regardless of the various uses to which the product can be put.
Which of the following is the best indicator of standard of living?
GDP per capita is the best measure of a nation’s standard of living.
How does an increase in savings rate affect economic growth?
A higher saving rate does mean less consumption, but it could also result in more capital investment and, ulti- mately, a higher rate of economic growth. In this respect, it is interest- ing that the growth rate of real GDP has been higher on average when the personal saving rate is rising than when it is falling.
What happens when a country increases its saving rate?
The short-run effects of an increase in the saving rate include a higher level of productivity, a higher growth rate of productivity, and a higher growth rate of income. Both population growth and productivity growth contribute in growth of real GDP.
What are the 4 factors of economic growth?
Economic growth only comes from increasing the quality and quantity of the factors of production, which consist of four broad types: land, labor, capital, and entrepreneurship.