ECON202 Quiz 4 (2024 Q1) (1) This is a preview of the draft version of the quiz Started: Feb 20 at 10:45am Quiz Instructions Instructions: - You have FIVE attempts for this quiz. - | will only keep the score of your latest attempt (not the best score among all attempts), please make sure that you answer all the questions for your latest attempt. - You may want to download the following file to save a copy of the quiz. - Do the quiz individually. - You can see whether you get the questions right/'wrong and the points you get for each question only after the quiz/exam is closed and your grade is finalized. - The purpose of multiple attempts is not to let students get a perfect score by \"trials and errors\". In case you think that you make mistakes in your previous attempt, you can take the quiz/exam again to correct the mistakes before the quiz/exam is closed. Question 1 1 pts Nathan owns a coffee shop. He wants to increase the weekly number of coffee drinks he sells, and he wants to spend more on physical capital to do so. would represent an increase in physical capital at his coffee shop. G An increase in the number of employees O Providing training to the employees O Advertising O Getting more coffee cups, coffee filters and coffee-making machines Question 2 1 pts With more people participating in the labor force, human capital will and hence economic growth will increase; increase decrease; increase O increase; decrease Question 3 1 pts In 2007, real GDP per capita in country E was $9,000. By 2008, it had increased to $10,200. Find the growth rate of real GDP per capita between 2007 and 2008. O 10.0 percent O 13.3 percent O 15 percent O 16 percent O 18 percent Question 4 1 ptsWhy growth rate of real GDP is not an ideal measure of economic growth compared with growth rate of real GDP per capita? O If the population growth rate is very high, the average income per person does not grow much even though the country has a high real GDP growth rate. O Real GDP growth rate does not take into account of inflation rate. O Economic growth rate is high when an economy experiences hyperinflation. O Real GDP growth rate and economic growth rate are always inversely related. Question 5 1 pts The economic growth rate of country B is 3% per year. Using the rule of 70, how long will it take for real GDP per capita of country B to double? O 3 years O 23.3 years O 30 years o 40.5 years Question 6 1 pts Why increasing physical capital can increase economic growth? O Increasing physical capital will lead to hyperinflation. O With more physical capital, workers have more tools and equipment to use. Workers become more productive and more output can be produced. O Increasing physical capital will reduce growth rate of nominal GDP. O With more physical capital, production technology will decline and less output will be produced. Economic growth rate will then increase. Question 7 1 pts Which of the following shows a correct equation for economic growth rate? O economic growth rate = real GDP growth rate inflation rate O economic growth rate = nominal GDP growth rate population growth rate O economic growth rate = real GDP growth rate + inflation rate O economic growth rate = nominal GDP growth rate inflation rate population growth rate e Question 8 8 pts For each of the following policies of promoting economic growth, categorize each into one of the factors of economic growth. Firm receive tax incentive for reducing [ Choose ] v industrial wastes. Firm receive tax incentive for developing [ Choose ] W new production methods. The government sends out a group of [ Choose ] W people to find natural gas. The government increases the financial [ Choose ] w aid received by college students. Firms can receive tax credits for buying production machines. [ Choose | v People are encouraged to exercise to stay [ Choose ] b healthy. Government relaxes the regulations and it [ Choose ] v is now easier for people to borrow money to start a company. The government builds infrastructure. [ Choose ] w For country A, the annual growth rate of nominal GDP is 16.5%. Population growth rate is 0.5% per year. Inflation rate is 15% per year. Use the given information to answer questions 9 - 13. Question 9 1 pts Calculate the annual growth rate of real GDP. Answer: The annual growth rate of real GDP = % Question 10 1 pts Calculate the annual economic growth rate Answer: The annual economic growth rate = % Question 11 1 pts Using the rule of 70, calculate how long it takes for the real GDP per capita to double. Answer: The real GDP per capita will double in years. Question 12 1 pis Country A wants to control inflation rate. This is related to which factor of economic growth? [ Select ] v e e B Question 13 1 pts Country A is politically stable. Explain why political stability can increase economic growth. O If the country is politically stable, physical capital decreases. O If the country is politically stable, firms are more willing to invest. O If the country is politically stable, firms are less willing to invest. O If the country is politically stable, money and prices will be unstable. Not saved Submit Quiz