Quiz 1 Questions

Question 1

In making international comparisons, what is the best measure to use as a proxy for the level of success a country has achieved in providing for its citizens from its own production.

Answer 1

GDP per capita in international dollars

Question 2

Consider the list of reasons GDP per capita is an imperfect measure of the success of a country’s economy. Which one is NOT a valid reason?

A. Does not consider the size of the country’s population
B. Does not consider how income is distributed
C. Does not consider existing infrastructure that continues to provide economic benefits
D. Does not emphasize national consumption
E. Does not measure the negative effects (like pollution) of some production activities.

Answer 2

A. Does not consider the size of the country’s population

Question 3

Which value is the best approximation of the size of the US economy relative to the size of the world economy in nominal terms?

A. 5%
B. 10%
C. 25%
D. 45%
E. 75%

Answer 3

C. 25%

Question 4

What is the approximate value of world GDP measured in nominal US dollars?

Answer 4

$100,000,000,000,000

Question 5

Which national GDP per capita value measured in international dollars is closest to the average world GDP per capita?

A. Italy, $60,000
B. Greece, $42,000
C. China, $26,000
D. Indonesia, 17,000
E. India, $11,000

Answer 5

China, $26,000

Question 6

Venezuela has a GDP per person in international $ of about $8,000 per year. How many times higher is the US GDP per person per year

Answer 6

10 times higher

Question 7

What is the false implication that many people believe because the fact that imports are subtracted in the national income identity?

Answer 7

Greater imports reduce GDP growth

Question 8

In which continent does every country have a GDP per capita that is less than the world average measured in international $.

Answer 8

Africa