1. The reason economists focus on measuring GDP is because
a. Economists are mostly concerned about profits.
b. Real GDP is the easiest thing to "count up" countries.
c. Real GDP is highly correlated with other measures of well-being.
d.None of the above
2. Using the Rule of 70, an economy that grows at 2% a year will take approximately ____ years to double its Real GDP
a. 35 years
b. 37 years
c. 140 years
d. 40 years
3. Let’s suppose that the state government of Pythagoras Land establishes an interest rate ceiling of 3 % through a usury law. (The equilibrium interest rate is 5%). One would expect to see...
a. A shortage of funds
b. A surplus of funds
c. An equilibrium
d. None of the above
4. Which of the following is an effect of the government borrowing to increase spending?
a. A decrease in private investment
b. An increase in private consumption
c. A decrease in interest rates
d. None of the above
5. What's the measure of standard of living used by economists?
a. Real GDP per capita
b. Nominal GDP per capita
c. Real GDP
d. Nominal GDP
