1)The country of Bolivia had a Gross Domestic Product of $79 billion in 2016 and a population of 11 million people, the GDP per capita would be

Select one:

a.$7,182.

b.$7.2.

Incorrect. Check your calculations: GDP per capita = GDP / Population

c.$7,900.

d.about $14,000.

2)The country of Wachovia has an economy that will double in 144 years. From what you've learned of the power of compound growth what does this mean for Wachovia?

Select one:

a.Wachovia has a thriving and rapidly growing economy growing over 1% per year.

b.Wachovia has a thriving and rapidly growing economy growing over 2% per year.

Incorrect. Use the rule of 72: Number of years for GDP to double = 72 / yearly growth rate

c.Wachovia has a somewhat stalled economic growth of over 1% per year.

d.Wachovia has a slow growing economy at a growth rate of .5% per year.

3)The country of Wakanda for 2018 has a GDP of $555 billion, with a total of 2 million workers, each of which averages 1400 work hours a year. What is the value of the output per worker per hour of work?

Select one:

a.4.$388.5

b.$792

Incorrect. Value of output per worker per hour=GDP/#workers/# hours worked

c.$1980

d.$198

4)The difference between nominal GDP and real GDP is:

Select one:

a.nominal GDP measures actual aggregate production while real GDP measures the value of the production in $.

b.real GDP excludes imports and exports.

Incorrect. Real GDP does not exclude exports

c.real GDP adjust for the effects of inflation.

d.Nominal only include services while Real includes physical goods

5)The macroeconomy

Select one:

a.primarily studies government economic policies.

Incorrect. Government is part of the macroeconomy.

b.Focuses on trade with other countries

c.focuses on firms and the production of goods and services.

d.regroups the activity of all households, firms and government in a country.

6)Which is a factor that drives economic growth?

Select one:

a.Government spending.

b.Increased human capital.

c.Low prices

Incorrect. Low prices are not a determining factor for economic growth.

d.Decreased unemployment.

7)Which of the following best defines real GDP?

Select one:

a.Real GDP is defined as the total dollar value of final goods and services produced within a country in one year divided by the real quantity produced.

b.Real GDP is defined as the total dollar value of final goods and services produced within a country in one year before adjustment for inflation.

Incorrect. This would not be a real measurement

c.Real GDP is defined as the current total dollar value of final goods and services produced within a country.

d.Real GDP is defined as the total dollar value of final goods and services produced within a country in one year after adjustment for inflation.

8)Which of the following captures all the components of GDP?

Select one:

a.C + I + G + M

Incorrect. The list is not complete

b.C + I + G

c.C + I + G + (X - M)

d.C + I + G - Tax

9 ) Your friend asked you what a business cycle means. You tell them that a business cycle reflects changes in real GDP. Then you tell them that the stages of a business cycle in correct order are:

Select one:

a.trough, expansion, recession, peak.

b.expansion, trough, recession, peak.

Incorrect. Not the right order

c.expansion, peak, recession, trough.

d.recession, peak, trough, expansion

10 ) If Ali grows hot peppers in his garden for his own consumption, the value of his production will

Select one:

a.not be included in Gross Domestic Product and give an accurate account of the value of the production in his country.

Incorrect. Non market transactions are not included but they should.

b.not be included in Gross Domestic Product and understate the value of the production in his country.

c.be included in Gross Domestic Product and give an accurate account of the value of the production in his country.

d.be included in Gross Domestic Product and overestimate the value of the production in his country.