Question 11(1 point)

When economists talk about growth in the economy, how do they measure that growth?

Question 11 options:

a)

with the absolute change in nominal GDP

b)

with the percentage change in real GDP

c)

with the absolute change in real GDP

d)

with the percentage change in nominal GDP

Question 12(1 point)

What is the GDP deflator?

Question 12 options:

a)

a measure of the overall price level

b)

a measure of economic well-being

c)

a measure of price changes

d)

a measure of total income

Question 13(1 point)

GDP is used as the basic measure of a society's economic well-being. What is a better measure of the economic well-being of individuals in society?

Question 13 options:

a)

GDP per person

b)

the consumption component of GDP

c)

government expenditures per person

d)

the level of business investment

Question 14(1 point)

Many things that society values, such as good health, high-quality education, enjoyable recreation opportunities, and desirable moral attributes of the population, are NOT measured as part of GDP. According to most economists, why is GDP a useful measure of society's well-being?

Question 14 options:

a)

It has been measured for many years and changing this measure would create confusion.

b)

Providing these other attributes is the responsibility of government.

c)

It measures a nation's ability to produce the things that contribute to well-being.

d)

These other values cannot actually be measured.

Question 15(1 point)

Suppose that 25 years ago a country had nominal GDP of 1000, a GDP deflator of 200, and a population of 100. Today, that country has a nominal GDP of 3000, a deflator of 400, and a population of 150. What happened to the real GDP per person?

Question 15 options:

a)

It more than doubled.

b)

It rose, but less than doubled.

c)

It fell.

d)

It did not change.