1. 1

2. 25
Economic Growth
CLICKER QUESTIONS 2

3. Checkpoint 25.1 Checkpoint 25.3 Checkpoint 25.4 Checkpoint 25.2
Question 8
Question 1
Question 5
Question 2
Question 6
Question 9
Question 7
Question 10
Checkpoint 25.2
Question 3
Question 4

4. CHECKPOINT 25.1
Question 1
If real GDP increases by 6 percent a year and at the same time the population increases by 2 percent a year, then real GDP per person grows by _____ a year.
6 percent
4 percent
2 percent
8 percent
3 percent
Answer: B

5. CHECKPOINT 25.1
Question 2
A country experiences a real GDP growth rate of 4 percent a year. Its real GDP will double in ______.
17.5 years
14 years
23.3 years
35 years
25 years
Answer: A

6. CHECKPOINT 25.2
Question 3
If real GDP is $1,200 billion, the population is 60 million, and the quantity of labor is 80 billion hours, labor productivity is _______.
$5.00 an hour
$6.67 an hour
$15.00 an hour
$20,000
$20.00 an hour
Answer: C

7. Question 4 CHECKPOINT 25.2 Labor productivity increases if ______.
saving and investment in physical capital and wages increase
human capital and the labor force increase and new technologies are discovered
human capital increases, the population grows, and new technologies are discovered
investment in physical capital, human capital increases, and new technologies are discovered
the labor force increases and wages increase
Answer: D

8. CHECKPOINT 25.3
Question 5
If real income is above the subsistence level then, according to classical growth theory, ________.
human capital will increase
the population will increase
the standard of living will continue to improve
labor productivity will increase
more technological advances occur
Answer: B

9. CHECKPOINT 25.3
Question 6
Neoclassical growth theory predicts that economic growth is ________.
only temporary due to overpopulation
the result of technological advances
random because of the extremes in weather
created by women entering the work force
increased by decreasing labor productivity
Answer: B

10. CHECKPOINT 25.3
Question 7
An increase in labor productivity ____ and ____ the demand for labor.
leads to a movement up along the production function; does not change
leads to a movement upward along the production function; decreases
shifts the production function upward; does not change
shifts the production function downward; increases
shifts the production function upward; increases
Answer: E

11. Question 8 CHECKPOINT 25.4 Economic growth is enhanced by ______.
engaging in free international trade
limiting international trade so that the domestic economy can prosper
discouraging saving because increased saving means less spending
ignoring incentive systems
increasing welfare payments to the poor so that they can afford to buy goods and services
Answer: A

12. Question 9 CHECKPOINT 25.4 Which of the following statements is FALSE?
Saving helps create economic growth.
Improvements in the quality of education are important for economic growth.
Free international trade helps create economic growth.
Faster population growth is the key to growth in real GDP per person.
Economic freedom requires property rights.
Answer: D

13. Question 10 CHECKPOINT 25.4 Saving ________.
slows growth because it decreases consumption expenditure
finances investment, which brings capital accumulation
does not influence economic growth
is very low in most East Asian nations
is important for a country to gain the benefits of international trade
Answer: B