Title: QUIZ: Economic Growth
Course: Recommended Resources for AP Macro from FRE > Section: Unit 5: Long-Run Consequences of Stabilization Policies

Q: Economic growth can be defined as _____________.
- a sustained rise over time in a nation’s production of goods and services (That is correct!)
- the total market value of all final goods and services produced in an economy in a given year (That is incorrect. Economic growth is a sustained rise over time in a nation’s production of goods and services.)
- an increase in a family’s income over time (That is incorrect. Economic growth is a sustained rise over time in a nation’s production of goods and services.)
- an increase in the money supply over time (That is incorrect. Economic growth is a sustained rise over time in a nation’s production of goods and services.)
A: a sustained rise over time in a nation’s production of goods and services

Q: Geigerville has a real GDP of $200,000 and a population of 2,000. Matzland has a real GDP of $1,000,000 and a population of 1,000. Which country has the higher real GDP per capita?
- Matzland’s real GDP per capita is higher. (That is correct!)
- Geigerville and Matzland have the same real GDP per capita. (That is incorrect. Matzland’s real GDP is $1,000 ($1,000,000 ÷ 1,000), while Geigerville’s real GDP is $100 ($200,000 ÷ 2,000).)
- Geigerville’s real GDP per capita is higher. (That is incorrect. Matzland’s real GDP is $1,000 ($1,000,000 ÷ 1,000), while Geigerville’s real GDP is $100 ($200,000 ÷ 2,000).)
- Neither country has a real GDP per capita. (That is incorrect. Matzland’s real GDP is $1,000 ($1,000,000 ÷ 1,000), while Geigerville’s real GDP is $100 ($200,000 ÷ 2,000).)
A: Matzland’s real GDP per capita is higher.

Q: Productivity is _____________.
- the quantity of output produced within a country within a year (That is incorrect. Productivity is the ratio of output per worker per unit of time.)
- the ratio of output per worker per unit of time (That is correct!)
- the number of hours it takes to produce a certain level of output (That is incorrect. Productivity is the ratio of output per worker per unit of time.)
- the quantity of workers it takes to produce a certain level of output (That is incorrect. Productivity is the ratio of output per worker per unit of time.)
A: the ratio of output per worker per unit of time

Q: A measure of standard of living is _____________.
- GDP (That is incorrect. Real GDP per capita is a measure of standard of living.)
- GDP per capita (That is incorrect. Real GDP per capita is a measure of standard of living.)
- real GDP (That is incorrect. Real GDP per capita is a measure of standard of living.)
- real GDP per capita (That is correct!)
A: real GDP per capita

Q: Scottsland has a real GDP of $100,000, and Mikestown has a real GDP of $100,000,000. Which country has the higher standard of living?
- Scottsland has the higher standard of living. (That is incorrect. Without population data for either country, there is not enough information to determine their real GDP per capita or standard of living.)
- Mikestown has the higher standard of living. (That is incorrect. Without population data for either country, there is not enough information to determine their real GDP per capita or standard of living.)
- The people of Scottsland and Mikestown enjoy the same standard of living. (That is incorrect. Without population data for either country, there is not enough information to determine their real GDP per capita or standard of living.)
- There is not enough information provided to make that determination. (That is correct!)
A: There is not enough information provided to make that determination.

Q: Which of the following is defined as the total market value, expressed in dollars, of all final goods and services produced in an economy in a given year?
- Real GDP per capita (That is incorrect. Nominal GDP is the total market value of all final goods and services produced in an economy in a given year, expressed using the current year’s prices for goods and services. It’s also known as current dollar-GDP.)
- Real GDP (That is incorrect. Nominal GDP is the total market value of all final goods and services produced in an economy in a given year, expressed using the current year’s prices for goods and services. It’s also known as current dollar-GDP.)
- Nominal GDP (That is correct!)
- Nominal GDP per capita (That is incorrect. Nominal GDP is the total market value of all final goods and services produced in an economy in a given year, expressed using the current year’s prices for goods and services. It’s also known as current dollar-GDP.)
A: Nominal GDP

Q: Productivity at Bennett industries can be improved by _____________.
- having workers specialize in specific tasks on the widget assembly line (That is correct!)
- having workers learn every job on the widget assembly line and switch positions every day (That is incorrect. Productivity improves when workers specialize in specific tasks on an assembly line.)
- providing each worker with tools and wood and telling them to make a widget (That is incorrect. Productivity improves when workers specialize in specific tasks on an assembly line.)
- having each worker produce as many widgets as they can in a day (That is incorrect. Productivity improves when workers specialize in specific tasks on an assembly line.)
A: having workers specialize in specific tasks on the widget assembly line

Q: What is real GDP?
- It is the total market value of final goods and services produced in an economy in a given year. (That is incorrect. Real GDP is the total market value of all final goods and services produced in an economy in a given year, adjusted for inflation.)
- It is a sustained increase in the average price level of goods and services. (That is incorrect. Real GDP is the total market value of all final goods and services produced in an economy in a given year, adjusted for inflation.)
- It is the total market value of all final goods and services produced in an economy in a given year, adjusted for inflation. (That is correct!)
- It is an increase in the money supply. (That is incorrect. Real GDP is the total market value of all final goods and services produced in an economy in a given year, adjusted for inflation.)
A: It is the total market value of all final goods and services produced in an economy in a given year, adjusted for inflation.

Q: Which of these is an example of an investment in human capital that would increase productivity in the workplace?
- A hospital sends their nursing staff to an intensive three-day training program on the new electronic health records software. (That is correct!)
- A manufacturing plant purchases new assembly line equipment. (That is incorrect. If a hospital sent their nursing staff to a training program on new software, the hospital would be investing in the human capital of the workers, potentially increasing their productivity.)
- High school students watch instructional videos about time management during their lunch time. (That is incorrect. If a hospital sent their nursing staff to a training program on new software, the hospital would be investing in the human capital of the workers, potentially increasing their productivity.)
- The fire department purchases a new fire engine. (That is incorrect. If a hospital sent their nursing staff to a training program on new software, the hospital would be investing in the human capital of the workers, potentially increasing their productivity.)
A: A hospital sends their nursing staff to an intensive three-day training program on the new electronic health records software.

Q: What is the difference between physical and human capital?
- Human capital is goods that have been produced to produce other goods and services. Physical capital is the knowledge and skills that people obtain through education, experience, and training. (That is incorrect. Physical capital is goods that have been produced to produce other goods and services; for example, a construction company would purchase bulldozers and dump trucks to complete client projects. Human capital is the knowledge and skills that people obtain through education, experience, and training; for example, the same construction company could offer training for workers on how to use electronic control panels on bulldozers and dump trucks.)
- Physical capital is goods that have been produced to produce other goods and services. Human capital is the knowledge and skills that people obtain through education, experience, and training. (That is correct!)
- Human capital is goods and services that have been produced to produce other goods and services. Physical capital is an advance in overall knowledge in a specific area. (That is incorrect. Physical capital is goods that have been produced to produce other goods and services; for example, a construction company would purchase bulldozers and dump trucks to complete client projects. Human capital is the knowledge and skills that people obtain through education, experience, and training; for example, the same construction company could offer training for workers on how to use electronic control panels on bulldozers and dump trucks.)
- Human capital is the knowledge and skills that people obtain through education, experience, and training. Physical capital is an advance in overall knowledge in a specific area. (That is incorrect. Physical capital is goods that have been produced to produce other goods and services; for example, a construction company would purchase bulldozers and dump trucks to complete client projects. Human capital is the knowledge and skills that people obtain through education, experience, and training; for example, the same construction company could offer training for workers on how to use electronic control panels on bulldozers and dump trucks.)
A: Physical capital is goods that have been produced to produce other goods and services. Human capital is the knowledge and skills that people obtain through education, experience, and training.