Economics Word Scramble

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Question	Answer
Economic growth is defined as	a sustained expansion of production possibilities
If Real GDP was 16 billion last year and is 18 billion this year what is the growth rate	18-16/16 * 100 = 12.5%
India's real GDP grew from $800 billion in 1996 to $888 billion. What was the growth rate of India's real GDP?	11%
Using the data in the table above, the growth rate for real GDP for 2005 is equal to	2.25-2.16/2.16 * 100 = 4.17%
Using the data in the table above, real GDP per person in 2004 is	Real GDP/Population $14,257.43
Using the data in the table above, the growth rate of real GDP has	Calculate Growth Rate for Time Periods slowed down from year to year
In growth theory, the standard of living is measured using the growth rate of	real GDP per person
For an economy's standard of living to increase, which of the following must be true?	Real GDP must grow more rapidly than the population
The population in the current year is 275 million and the real GDP is $9 trillion The previous a population of 270 million and a real GDP of $8.6 trillion. The change in the standard of living measured by growth in real GDP per person	Growth Rate - Population Rate Percentage Change formula to both: 2.8%
Using the rule of 70, a sustained 2.5 percent per year real GDP growth rate will	70/2.5 = 28 Double the current level of real GDP in about 28 years
Iceland has real GDP per person 8 times greater than Cape Verde in 1998. Cape Verde's growth rate of real GDP per person in 198 was 5.2%.Cape Verde keeps current growth rate How long before Cape Verde's real GDP per person reaches same as Iceland in 1988	How many times does Cape Verde have to double:? 1-2-4-8=3X 70/5.2=13 13X3=40
If real GDP is $6,460 billion, the population is 184.6 million people, and total labor hours are 170 billion, labor productivity is	Real GDP/Aggregate Hours 6,460/170=38
Assume the real GDP of the economy is $9,000 billion and total hours worked is 200 billion What is the economy's labor productivity	45
The widespread adoption of computers in the workplace has likely caused a	increase in labor productivity because computers are a capital good
Increases in human capital can come	from formal education and on-the-job learning
Thomas Malthus was an economist who contributed to the _______ theory of growth	Classical
Classical growth theory predicts that increases in real GDP per person will	Not last because higher income leads to a population explosion
According to the new growth theory, real GDP per person grows because	people make choices in pursuit of profits
The new growth theory asserts that profits are	temporary, because discoveries that lead to profits will eventually be used by all - replicated
An important condition required for economic growth is	economic freedom
Economic freedom requires	the rule of law and ability to enforce the laws
A reason why many of the third world countries are not achieving an increase in their standard of living is that they	don't have social institutions with a strong rule of law and economic freedom
Property rights assure people that	the government will not confiscate their income or savings
Retirement savings accounts, such as IRAs, help increase economic growth because	savings finances investment

Created by: malanave