1. Economic growth is best defined as ______.

a sustained increase in a country's goods and services production

investment in a nation's businesses

a gradual increase in the wealth and living standards in a country

2. The economy of Country A grows at a rate of 1.5 percent per year. The economy of Country B grows at a rate of 2.5 percent per year. It will take approximately ______ more years for the economy of Country A to double than it will for the economy of Country B to double.

1

18.7

70

3. If the economy of Celine's country doubles every 50 years, what is its approximate economic growth rate?

20 percent

1.4 percent

0.7 percent

4. Many years of past economic growth mean that the most-developed countries have ______.

so much wealth that less-developed countries will never be able to catch up

overcome the problem of diminishing marginal returns on capital

greater output in a day than the least-developed countries do in a year

5. What does sustained economic growth depend on?

an increase in a nation's population

increased output by the average worker

the use of tried and true methods of production

6. What is the relationship between natural resources and economic growth?

Natural resources ultimately determine whether a nation will grow economically.

A lack of natural resources can hinder a nation's economic growth.

Natural resources have no impact on a nation's economic growth.

7. Corrine lives in a country that successfully transitioned from autocracy to democracy. Based on this information we can conclude that Corrine's country ______.

may or may not be growing economically

has seen its economic growth decline

has strong economic growth

8. Why is there a need for government support of basic scientific research?

It helps to maintain international economic equilibrium.

The benefits of such research may be too broad to be captured by a private company.

It is too expensive for most private entities to undertake.

9. How can free trade help countries boost their economic output?

It allows poor countries to take advantage of technology developed by rich countries.

It gives rich countries an incentive to invest in the physical infrastructure of poor countries.

It allows countries to specialize rather than try to be good at producing everything they need.

10. The Reverend Thomas Malthus believed that population growth would eventually result in ______.

an indeterminate economic value

rapid economic growth

negative per capita economic growth

11. According to the law of diminishing marginal returns, as population increases, a point will eventually be reached where ______.

output increases by smaller and smaller amounts

GDP per capita rises sharply

workers grow increasingly productive and efficient

12. The population, and thus the workforce, in David's country is growing rapidly. What can be assumed about David's country?

The economic growth rate is slowing.

It has greater output than before.

Wages are at subsistence levels.