1. To measure economic growth, economists look at the ______ real output of services and goods per capita.

percentage daily change

annual percentage change in

historical yearly change

change in monthly total

2. Which statement most accurately defines economic growth?

the application of new knowledge that creates or improves products

a nation's natural rate of output of goods and services

how much an economy produces at its potential output

an increase in a country's maximum potential output of goods and services

3. An economy's natural rate of output is ______.

equal to its current year's real GDP per capita

unchanging year to year

how much it can produce at its potential output

independent of its resources

4. A country's economic growth is determined by its level of productivity, which in turn is determined by its ______.

population size, infrastructure, physical capital, and natural resources

technology, natural resources, human capital, and physical capital

age, population size, natural resources, and infrastructure

standard of living, natural resources, technology, and human capital

5. What did Malthus believe would be the ultimate result of population growth?

wages that were at a survival-only level

positive per capita economic growth

rapidly fluctuating economic growth

technological innovation and a higher standard of living

6. According to the law of diminishing returns, if population grows, but the amount of available resources stays the same, total output will ______.

stay the same

rise, but by ever shrinking amounts

rise at a steady rate

fall at an inverse rate

7. Focusing on real GDP "per capita" allows economists to take into account how ______ impacts economic growth.

international changes

the standard of living

population growth

annual percentage change

8. If the productivity of the labor supply of a country increases by 2 percent every year, how will this affect the country's production possibilities curve?

The curve will be shifted inward.

The curve will be unaffected.

The curve will be shifted outward.

The curve will be rendered obsolete.

9. According to the rule of 70, a nation that has an economic growth rate of 5 percent will double its output in ______ years.

35

14

7

3.5

10. Kauri's country is building new factories to help increase the country's production levels. What is Kauri's country investing in?

physical capital

human capital

technology

natural resources