Question 27(1 point)

Samantha deposits $2000 into a saving account that pays an annual interest rate of 5 percent. Over the course of a year, the inflation rate is 2 percent. What happens at the end of the year?

Question 27 options:

a)

Samantha has $100 more in her account, and her purchasing power has increased by about $40.

b)

Samantha has $100 more in her account, and her purchasing power has increased by about $60.

c)

Samantha has $140 more in her account, and her purchasing power has increased about $100.

d)

Samantha has $140 more in her account, and her purchasing power has increased about $40.

Question 28(1 point)

Over the past century in Canada, by how much has real GDP per person grown?

Question 28 options:

a)

by about 1 percent per year

b)

by about 2 percent per year

c)

by about 4 percent per year

d)

by about 6 percent per year

Question 29(1 point)

How is a nation's standard of living determined?

Question 29 options:

a)

by its productivity

b)

by its gross domestic product

c)

by its national income

d)

by how much it has relative to others

Question 30(1 point)

In 2012, Freedonia had a population of 2700 and real GDP of about $1 080 000. In 2011, it had a population of 2500 and real GDP of about $1 000 000. What was the approximate growth rate of real GDP per person in Freedonia between 2011 and 2012?

Question 30 options:

a)

0 percent

b)

2.5 percent

c)

5 percent

d)

7.5 percent

Question 31(1 point)

Which of the following best describes the relationship between productivity and standard of living?

Question 31 options:

a)

International trade makes a country's productivity irrelevant.

b)

A country's standard of living and its productivity are closely related.

c)

Productivity only increases revenue to investors, while general well-being is not affected.

d)

A rich country can enjoy a high standard of living without the need for high productivity.

Question 32(1 point)

What do economists call the equipment and structures available to produce goods and services?

Question 32 options:

a)

physical capital

b)

human capital

c)

the production function

d)

technology

Question 33(1 point)

Which of the following best defines human capital?

Question 33 options:

a)

the knowledge and skills that workers acquire through education, training, and experience

b)

the stock of equipment and structures that is used to produce goods and services

c)

the total number of hours worked in an economy

d)

the total amount that is paid in wages in an economy