Title: Macroeconomic Measures: GDP and Economic Growth
Course: Macro Quiz Test

Q: Which of the following describes the macroeconomy?
- The oil and gas sector in Texas has seen the largest job gains in 2017.
- The online retail business has been growing at the expense of traditional retail stores.
- The US inflation rate has been under 2% annually over the last 7 years.
A: The US inflation rate has been under 2% annually over the last 7 years.

Q: Of the following statements, which describes macroeconomy?
- The technology sector in San Francisco has seen the largest job gains in 2017.
- Retail stores have been in decline due to the online retail business growth.
- The US inflation rate has been under 3% annually over the last 5 years.
A: The US inflation rate has been under 3% annually over the last 5 years.

Q: A macroeconomist would study
- the impact of regulations in the banking sector in Florida.
- household spending patterns in lower income groups.
- economic policies designed to stimulate the country’s economy out of a recession.
A: economic policies designed to stimulate the country’s economy out of a recession.

Q: If an individual was studying the economic policies designed to stimulate the country’s economy out of a recession they would be a
- microeconomist.
- business manager.
- macroeconomist.
A: macroeconomist.

Q: A macroeconomic externality occurs when
- cost is passed onto third parties by producers in certain markets.
- economic activity that is external to a country’s economy is added such as investment of US firms overseas.
- outcomes at the macroeconomic level are different from the outcomes at the microeconomic level.
A: outcomes at the macroeconomic level are different from the outcomes at the microeconomic level.

Q: When an outcome at the macroeconomic level is different from the outcome at the microeconomic level it is know as a(n)
- Cost production
- microeconomic externality.
- macroeconomic externality.
A: macroeconomic externality.

Q: The macroeconomy
- focuses on firms and the production of goods and services.
- primarily studies government economic policies.
- regroups the activity of all households, firms and government in a country.
A: regroups the activity of all households, firms and government in a country.

Q: An example of a macroeconomy is when it
- focuses on firms and the production of goods and services.
- primarily studies government economic policies.
- regroups the activity of all households, firms and government in a country.
A: regroups the activity of all households, firms and government in a country.

Q: An economic indicator is:
- one of a series of laws that was passed in the 1990s to help reduce the trade deficit.
- a variable that describes how the economy fluctuates every four years due to presidential elections.
- a statistic that helps us understand how the economy is doing.
A: a statistic that helps us understand how the economy is doing.

Q: Economic indicators can help give us
- a direction in which economists can push the economy at the macro level.
- insight into which way the stock market is going to move over the coming year.
- an understanding of the state of the economy.
A: an understanding of the state of the economy.

Q: After getting her degree in Economics, Jeanine went to work for the Bureau of Labor Statistics. She compiles data on the unemployment rate, which serves as an economic indicator. What does this data help Jeanine to understand?
- How many new employees the Bureau of Labor Statistics should hire this year.
- Whether or not the banking industry is going to require federal assistance.
- How the economy is doing at a macro level.
A: How the economy is doing at a macro level.

Q: Assume that you are an economist looking at economic indicators for both the United States as well as several European countries. What do these economic indicators enable you to do?
- Determine whether the European countries have received financial assistance from the United States.
- Compare tax systems between the U.S. and Europe.
- Compare how well the U.S. economy is doing relative to the European countries.
A: Compare how well the U.S. economy is doing relative to the European countries.

Q: In his Macroeconomics class, Louis is working on a project for which he needs to understand the state of the U.S. economy. Which of the following is an economic indicator that Louis could use to help him with this task?
- the number of businesses that failed in the last quarter
- the number of financial laws that were passed in the last year
- the unemployment rate
A: the unemployment rate

Q: Carla just started her new job working at the Department of Commerce. In order to see whether Carla “knows her stuff,” her boss asks her to put together a presentation on the current state of the economy. What is one of the economic indicators Carla could look at?
- stock market trends over the past few months
- cost of housing
- the inflation rate
A: the inflation rate

Q: You have just started your new job in Washington D.C. at the Bureau of Economic Analysis department. Your first task if to calculate economic indicators from 2017 to assess the macroeconomic state of the country. Which answer fits what you need?
- Total profit and loss statistics from the city of Washington D.C. for 2017.
- The housing trends for the Western United States for 2017.
- The quantitative measurements of the nation’s economic activity for 2017.
A: The quantitative measurements of the nation’s economic activity for 2017.

Q: The Department of Commerce in Washington D.C. is developing the macroeconomic report for the nations’ previous economic quarter. You are tasked with calculating that economic report. You start your calculations by assessing the
- total profit and loss statistics from the city of Washington D.C. for the last quarter.
- housing trends for the Western United States from the last quarter.
- quantitative measurements of the nation’s economic activity from last quarter.
A: quantitative measurements of the nation’s economic activity from last quarter.

Q: Gross Domestic Product (GDP) is designed to measure:
- a nation’s total consumption of final goods and services.
- a nation’s total imports of final goods and services
- a nation’s total production of final goods and services.
A: a nation’s total production of final goods and services.

Q: What is the Gross Domestic Product (GDP) designed to measure?
- A nation’s total consumption of final goods and services.
- A nation’s total imports of final goods and services
- A nation’s total production of final goods and services.
A: A nation’s total production of final goods and services.

Q: Which of the following is counted as part of GDP?
- The purchase of your grandfather’s old car by a neighbor.
- The predicted inventory for next year.
- The purchase of a snow plough by the city of Minneapolis.
A: The purchase of a snow plough by the city of Minneapolis.

Q: Which of the following is left out of being counted as part of GDP?
- The purchase of a new snow plough by the city of Minneapolis.
- The unsold additions to inventory at an appliances store.
- The purchase of your next door neighbor’s house.
A: The purchase of your next door neighbor’s house.

Q: Final goods or services used to compute GDP refer to:
- the factors of production used to produce output.
- the value of outstanding shares of stock of manufacturing firms.
- goods and services purchased by the ultimate users.
A: goods and services purchased by the ultimate users.

Q: GDP includes
- intermediate and final goods to count all goods and services produced.
- final goods and inventories of imported intermediate goods.
- only final goods to avoid double counting when including intermediate goods.
A: only final goods to avoid double counting when including intermediate goods.

Q: Which of the following is included in GDP?
- Cash paid to a babysitter that is not reported to the tax authorities.
- Your friend changes your brake pads for free.
- The payments for a chiropractor’s services.
A: The payments for a chiropractor’s services.

Q: Which of the following is included in GDP calculations?
- Cash received from a yard sale.
- The milk that is purchased by Ben & Jerry’s and used in the ice cream they sell.
- The university tuition paid to enroll in a course.
A: The university tuition paid to enroll in a course.

Q: Which of the following is included in GDP?
- Revenue from the sale of a three-year old car.
- The cost of eggs for a baker who sells donuts and cakes.
- The tickets to a football game that were bought but never used.
A: The tickets to a football game that were bought but never used.

Q: Which one of these answers is included in GDP for 2017?
- Revenue from the sale of a five-year old boat in 2017.
- The cost of flour for a manufacturer who makes tortillas in 2017.
- The tickets to a Janet Jackson concert purchase and used in 2017.
A: The tickets to a Janet Jackson concert purchase and used in 2017.

Q: Which of the following would fall in the investment component of GDP?
- The amount spent on stocks and bonds.
- The amount spent on consumer durable goods.
- The amount spent on new factories.
A: The amount spent on new factories.

Q: The purchase of new capital goods by a business would fall under which component of GDP?
- consumption
- government
- investment
A: investment

Q: Which of the following captures all the components of GDP?
- C + I + G
- C + I + G + M
- C + I + G + (X – M)
A: C + I + G + (X – M)

Q: Which of the following is NOT a major component of GDP as measured by the expenditure approach?
- consumption
- investment
- taxation
A: taxation

Q: Which of the following is included in a measure of GDP?
- spending on used goods
- spending on non-market transactions like painting your house
- spending on public infrastructure
A: spending on public infrastructure

Q: In measuring GDP as the sum of all incomes earned in production, we should include
- purchases of used goods.
- American purchases of foreign output.
- wages and salaries.
A: wages and salaries.

Q: The United States will have a trade deficit in which of the following scenarios?
- Spending by American households, businesses, and government is less than U.S. GDP.
- Spending on the American goods and services is less than U.S. GDP.
- U.S. imports are greater than U.S. exports.
A: U.S. imports are greater than U.S. exports.

Q: Last year, in calculating the GDP of the United States imports were found to be greater than U.S. export. This is known as a
- trade imbalance.
- trade surplus.
- trade deficit.
A: trade deficit.

Q: GDP includes
- purchases of U.S. made products by the federal government, consumers and private businesses in the U.S. only.
- all purchases of products from the federal government, consumers in the U.S. and around the world.
- purchases of U.S. made products by consumers, private businesses and the government sector.
A: purchases of U.S. made products by consumers, private businesses and the government sector.

Q: Consumption describes
- purchases of all final goods and services by consumers.
- purchases of all goods and services by consumers and businesses.
- purchases of final goods and services by consumers except new housing.
A: purchases of final goods and services by consumers except new housing.

Q: When calculating GDP as the sum total of all spending, which of the following should be included?
- savings
- government transfer payments
- government purchases of labor, goods, and services
A: government purchases of labor, goods, and services

Q: Which of the following is included in GDP?
- savings
- government transfer payments
- government purchases of labor, goods, and services
A: government purchases of labor, goods, and services

Q: Which of the following is included in the computation of GDP in a particular year?
- social security payments to retirees
- total value of imports
- government expenditure on public schools
A: government expenditure on public schools

Q: Which of the following would be included in the computation of GDP in a particular year?
- distribution of food stamps to recipients
- an increase in imported goods
- government expenditure on national defense
A: government expenditure on national defense

Q: Over the past 50 years, which component of spending has steadily gained as a percentage of the total?
- durable goods
- nondurable goods
- services
A: services

Q: Which component of spending has steadily gained over the past fifty years?
- nondurable goods
- structures
- services
A: services

Q: When calculating GDP, investment refers to the
- purchase of stocks, bonds, or other financial assets.
- amount of new capital goods sold in a given year.
- purchase of new capital goods like equipment and inventories.
A: purchase of new capital goods like equipment and inventories.

Q: Investment, when calculating GDP, refers to the
- purchase of stocks and bonds and trading financial assets.
- amount of new capital goods sold in a given year.
- purchase of new capital goods like real estate, equipment, and inventories.
A: purchase of new capital goods like real estate, equipment, and inventories.

Q: Fred is reading through a news article about the nation’s GDP. The article mentions as part of its calculations, consumption expenditures. What is included in the GDP calculation of consumption?
- exported goods
- purchase of new manufacturing facilities
- nondurable and durable goods
A: nondurable and durable goods

Q: Zander read a report about the nation’s GDP from last year. The report talks about the investment expenditures. What is included in the GDP calculation of investment?
- total value of capital stock
- purchase of new private housing
- additions to inventories
A: additions to inventories

Q: In calculating GDP, which component of spending must be subtracted from total spending to account for the fact that not all private or public spending by U.S. households is directed to U.S. businesses?
- domestic
- export
- import
A: import

Q: In calculating GDP, which component of spending must be subtracted from total spending?
- depreciation
- export
- import
A: import

Q: If depreciation equals $36 billion, GNP equals $240 billion, and national income is $225 billion, then what is the Net National Product?
- $276 billion
- $361 billion
- $204 billion
A: $204 billion

Q: If depreciation equals $32 billion, GNP equals $230 billion, and national income is $215 billion, then what is the Net National Product?
- $189 billion
- $273 billion
- $198 billion
A: $198 billion

Q: Which of the following would be included in Gross National Product?
- A bottle of Tequila made in Mexico sold by Spec’s Liquor in Texas.
- Maple syrup produced by a Canadian firm in New York state.
- A dresser made in Mexico by USA furniture direct inc.
A: A dresser made in Mexico by USA furniture direct inc.

Q: Gross national product would include
- final goods and services produced in the United States.
- final goods and services produced in the United States by US firms.
- final goods and services produced by American resources.
A: final goods and services produced by American resources.

Q: Use the figures in the table for the calculation. What is the NNP?

Government Purchases | $158 billion
Depreciation | $28 billion
Consumption | $427 billion
Investment | $43 billion
Exports | $87 billion
Imports | $103 billion
Income receipts from rest of the world | $7 billion
Income payments to rest of the world | $5 billion
- $612 billion
- $858 billion
- $586 billion
A: $586 billion

Q: Calculate the NNP using the figures in the table. What is the NNP?

Government Purchases | $220 billion
Depreciation | $35 billion
Consumption | $575 billion
Investment | $55 billion
Exports | $120 billion
Imports | $110 billion
Income receipts from rest of the world | $12 billion
Income payments to rest of the world | $9 billion
- $860 billion
- $1136 billion
- $828 billion
A: $828 billion

Q: You are in charge of calculating the needed figures for a government report. The figure you need to calculate is the GDP. Using the numbers in the table, what is the GDP?

Government Purchases | $220 billion
Depreciation | $35 billion
Consumption | $575 billion
Investment | $55 billion
Exports | $120 billion
Imports | $110 billion
Income receipts from rest of the world | $12 billion
Income payments to rest of the world | $9 billion
- $828 billion
- $1136 billion
- $860 billion
A: $860 billion

Q: Your boss has asked you to calculate the needed figures for a government report. The figure you need to calculate is the GDP using the numbers in the table. What is the GDP?

Government Purchases | $158 billion
Depreciation | $28 billion
Consumption | $427 billion
Investment | $43 billion
Exports | $87 billion
Imports | $103 billion
Income receipts from rest of the world | $7 billion
Income payments to rest of the world | $5 billion
- $586 billion
- $858 billion
- $612 billion
A: $612 billion

Q: Which of the following represents a real measurement?
- Alex receives his monthly paycheck of $3,000.
- Alex used to earn $2,500 per month 4 years ago.
- Alex spends a third of his income on rent.
A: Alex spends a third of his income on rent.

Q: Real measurements are
- expressed in current dollars.
- expressed using today’s currency.
- expressed in constant dollars.
A: expressed in constant dollars.

Q: To measure a real increase in wages,
- the changes would have to be averaged.
- the increase would have to be compared to the growth in GDP.
- the wages would have to be adjusted for inflation overtime.
A: the wages would have to be adjusted for inflation overtime.

Q: Real measurements are
- fixed through time.
- increasing with prices.
- adjusted for inflation.
A: adjusted for inflation.

Q: Bob is measuring the GDP in 2018 by using the quantity of each final good and service produced in 2018, multiplied by the price at which the goods and services were sold in 2018. What type of calculation is Bob creating?
- The GDP using real values.
- The GDP using both nominal and real values.
- The GDP using nominal values.
A: The GDP using nominal values.

Q: Alejandra is calculating the nondurable goods value for 2017. She is calculating the value by using the quantity of each final nondurable good produced in 2017, multiplied by the price at which the nondurable goods were sold in 2017. What type of calculation is Alejandra creating?
- The nondurable goods real values.
- The nondurable goods nominal and real values.
- The nondurable goods nominal values.
A: The nondurable goods nominal values.

Q: Janice has calculated the GDP for 2018 by using the total final goods times the 2018 prices of total goods. If Janice wishes to create a real value GDP value for 2018, what must she do?
- Janice must multiply the total value by the projected GDP for 2019.
- Janice must divide the total value of consumer goods by the exported goods values.
- Janice must adjust the total value 2018 GDP for inflation.
A: Janice must adjust the total value 2018 GDP for inflation.

Q: Matias has collected a report for last year’s price of consumer goods and his goal is to have a more accurate cost comparison of what utility costs are today as compared with past utility costs. He has a good set of nominal utility cost values from the report. What is the next step for Matias to take to attain his goal of a more accurate utility cost comparison?
- Matias must multiply the total value of the utility costs from the previous years with this year.
- Matias must divide the total value of the utility costs this year by last years total value.
- Matias must adjust the utility cost values for inflation.
A: Matias must adjust the utility cost values for inflation.

Q: If inflation occurs in a given year,
- the change in the real measurement (GDP) would be greater than the change in the nominal one.
- the change in the real measurement (GDP) would be equal to the change in the nominal one.
- the change in the real measurement (GDP) would be smaller than the change in the nominal one.
A: the change in the real measurement (GDP) would be smaller than the change in the nominal one.

Q: If productivity increases from one year to the next,
- only nominal GDP would increase.
- only real GDP would increase.
- nominal and real gross domestic product would increase.
A: nominal and real gross domestic product would increase.

Q: Which of the following best defines real GDP?
- Real GDP is defined as the total dollar value of final goods and services produced within a country in one year before adjustment for inflation.
- Real GDP is defined as the current total dollar value of final goods and services produced within a country.
- Real GDP is defined as the total dollar value of final goods and services produced within a country in one year after adjustment for inflation.
A: Real GDP is defined as the total dollar value of final goods and services produced within a country in one year after adjustment for inflation.

Q: You have just read an explanation of the figures you studying as the total dollar value of final goods and services produced within a country in one year after adjustment for inflation. What is this statement describing?
- The definition of nominal GNP.
- The definition of nominal GDP.
- The definition of real GDP.
A: The definition of real GDP.

Q: The difference between nominal GDP and real GDP is:
- nominal GDP measures actual aggregate production.
- real GDP excludes imports and exports.
- real GDP includes the effects of inflation.
A: real GDP includes the effects of inflation.

Q: The distinction between real GDP and nominal GDP is important to determine which of the following?
- The growth in the government sector.
- The change in real GDP per person.
- The change in real output produced.
A: The change in real output produced.

Q: The following table shows the production within a very small country’s economy in two consecutive years. What was the real GDP of 2017?

Year | Item | Quantity Produced | Price Per Unit
2017 | Oranges | 1000 pounds | $1.00
2017 | Haircuts | 2000 haircuts | $5.00
2018 | Oranges | 1500 pounds | $1.50
2018 | Haircuts | 3000 haircuts | $7.50
- $12,500
- $16,500
- $11,000
A: $11,000

Q: The following table shows the production of a country’s economy in two consecutive years. Using 2017 as the base year, what is the real GDP for 2018?

Year | Item | Quantity Produced | Price Per Unit
2017 | Oranges | 1000 pounds | $1.00
2017 | Haircuts | 2000 haircuts | $5.00
2018 | Oranges | 1500 pounds | $1.50
2018 | Haircuts | 3000 haircuts | $7.50
- $15,000
- $23,250
- $16,500
A: $16,500

Q: If Nominal GDP = $4.5 trillion and the GDP deflator is 150, then real GDP is equal to
- $4.3 trillion.
- $6 trillion.
- $3 trillion.
A: $3 trillion.

Q: If Nominal GDP = $2.5 trillion and the GDP deflator is 125, then real GDP is equal to
- $3 trillion.
- $1.5 trillion.
- $2 trillion.
A: $2 trillion.

Q: Suppose the European Union has a real GDP of 12.2 trillion Euros, and their GDP deflator is 125. What is the European Union’s nominal GDP?
- 9.76 trillion Euros
- 137.5 trillion Euros
- 15.25 trillion Euros
A: 15.25 trillion Euros

Q: Suppose the European Union has a Nominal GDP of 20 trillion Euros, and their GDP deflator is 125. What is the European Union’s Real GDP?
- 25 trillion Euros
- 0.16 trillion Euros
- 16 trillion Euros
A: 16 trillion Euros

Q: If Nominal GDP is $17,000 billion and the GDP deflator is 75, then Real GDP is ________.
- $12.75 billion
- $16.50 billion
- $22.67 billion
A: $22.67 billion

Q: If Nominal GDP is $16,000 billion and the GDP deflator is 50, then Real GDP is ________.
- $25,000 billion
- $8,000 billion
- $32,000 billion
A: $32,000 billion

Q: If Nominal GDP is $12,000 billion and the GDP deflator is 80, then Real GDP is ________.
- $21,600 billion
- $9,600 billion
- $15,000 billion
A: $15,000 billion

Q: If Nominal GDP is $22,000 billion and the GDP deflator is 110, then Real GDP is ________.
- $24,200 billion
- $11,000 billion
- $20,000 billion
A: $20,000 billion

Q: Assume the economy of country C produces hotdogs and buns in the following quantities and prices in 2016 and 2017. Assume also that 2016 is the base year and the real GDP will be calculated using 2016 prices. What is the real GDP 2017?

 | Hot Dogs |  | Buns |
 | Quantity | Price | Quantity | Price
Year 2016 (base year) | 6 million | $2 | 4 million | $1
Year 2017 | 8 million | $3 | 6 million | $2
- $36 million.
- $16 million.
- $22 million.
A: $22 million.

Q: Assume the economy of country C produces hotdogs and buns in the following quantities and prices in 2016 and 2017. Assume also that 2016 is the base year and the real GDP will be calculated using 2016 prices. What is the real GDP 2017?

 | Hot Dogs |  | Buns |
 | Quantity | Price | Quantity | Price
Year 2016 (base year) | 20 million | $2 | 15 million | $1
Year 2017 | 22 million | $3 | 16 million | $2
- $98 million.
- $90 million.
- $60 million.
A: $60 million.

Q: Assume the economy of country C produces hotdogs and buns in the following quantities and prices in 2016 and 2017. Assume also that 2016 is the base year and the real GDP will be calculated using 2016 prices. What is the real yearly growth (between 2016 and 2017)?

 | Hot Dogs |  | Buns |
 | Quantity | Price | Quantity | Price
Year 2016 (base year) | 6 million | $2 | 4 million | $1
Year 2017 | 8 million | $3 | 6 million | $2
- 125%
- 20%
- 37.5%
A: 37.5%

Q: Assume the economy of country G produces hotdogs and buns in the following quantities and prices in 2017 and 2018. Assume also that 2017 is the base year and the real GDP will be calculated using 2017 prices. What is the real yearly growth (between 2017 and 2018)?

 | Hot Dogs |  | Buns |
 | Quantity | Price | Quantity | Price
Year 2017 (base year) | 5 million | $3 | 2 million | $2
Year 2018 | 7 million | $5 | 6 million | $4
- 32.2%
- 211%
- 73.7%
A: 73.7%

Q: With a Real GDP of $15 trillion in 2015 and of $18 trillion in 2016, the real growth would be ________.
- 2%
- 16.7%
- 20%
A: 20%

Q: With a Real GDP of $100 billion in 2016 and of $140 billion in 2017, the real growth would be ________.
- 14%
- 71%
- 40%
A: 40%

Q: Given the following information, what would the real growth in 2015 be?

 | Nominal GDP | GBP Deflator
2014 | $120 billion | 110
2015 | 145 billion | 126
- 38.6%
- 21%
- 5.5%
A: 5.5%

Q: Given the following information, what would the real growth in 2015 be?

 | Nominal GDP | GBP Deflator
2014 | $500 billion | 200
2015 | 575 billion | 220
- 4.2%
- 11%
- 5%
A: 5%

Q: The fictional small country of Dansbert has had a robust GDP the last few years. Dansbert produces just two products: TVs and Computers. The following chart shows product quantities and prices from 2016 to 2018. With 2016 as the base year calculate the real GDP using 2018 prices. What is the real yearly growth of 2017 & 2018?

 | TVs |  | Computers |
 | Quantity | Price/unit | Quantity | Price/unit
Year 2016 (base year) | 1 million | $20 | 2 million | $40
Year 2017 | 3 million | $40 | 3 million | $65
Year 2018 | 5 million | $70 | 6 million | $80
- 250% for 2017; 100% for 2018
- 215% for 2017; 730% for 2018
- 80% for 2017; 240% for 2018
A: 80% for 2017; 240% for 2018

Q: The fictional small country of Qbert has had a robust GDP the last few years. Dansbert produces just two products; Water Bottles and Bikes. The following chart shows product quantities and prices from 2016 to 2018. With 2016 as the base year calculate the real GDP using 2018 prices. What is the real yearly growth of 2017 & 2018?

 | Water Bottles |  | Bikes |
 | Quantity | Price/unit | Quantity | Price/unit
Year 2016 (base year) | 1 million | $3 | 2 million | $10
Year 2017 | 2.5 million | $4 | 2.5 million | $12
Year 2018 | 3 million | $5 | 2.75 million | $17
- 73.9% for 2017; 168.5% for 2018
- 23.1% for 2017; 69.2% for 2018
- 41.3% for 2017; 58.7% for 2018
A: 41.3% for 2017; 58.7% for 2018

Q: Which of the following is the alternating periods of expansion and contraction in real GDP?
- depressions
- economic crises
- business cycles
A: business cycles

Q: Fluctuations in real GDP are called ________.
- depressions
- recessions
- business cycles
A: business cycles

Q: Concerning the four phases in the economic cycle, the area by point A in this graph represents an economic ________.
- trough
- recession
- expansion
A: expansion

Q: Concerning the four phases in the economic cycle, what is show by point B?
- trough
- recession
- peak
A: peak

Q: Concerning the four phases in the economic cycle, what is shown by point C?
- peak
- expansion
- recession
A: recession

Q: Concerning the four phases in the economic cycle above, what does point D depict?
- expansion
- recession
- trough
A: trough

Q: An economy is considered to be in a recession if:
- real GDP has increased for two consecutive quarters.
- it is moving from the trough to the peak of the business cycle.
- it is moving from the peak toward the trough of the business cycle.
A: it is moving from the peak toward the trough of the business cycle.

Q: An economy is considered to be in an expansion if:
- it is moving from the peak toward the trough of the business cycle.
- real GDP has increased for two consecutive quarters.
- it is moving from the trough to the peak of the business cycle.
A: it is moving from the trough to the peak of the business cycle.

Q: The point of a fluctuation at which an economy turns from a recession to an expansion is called a ________.
- depression
- disinflation
- trough
A: trough

Q: The point at which an economy transitions from an expansion to a recession is called a/an ________.
- trough
- expansion
- peak
A: peak

Q: The point of a fluctuation at which economy turns from a peak to a trough is called a/an ________.
- peak
- expansion
- recession
A: recession

Q: The point of a fluctuation at which economy turns from a trough to a peak is called a/an ________.
- recession
- peak
- expansion
A: expansion

Q: Your friend asked you what a business cycle means. You tell them that a business cycle reflects changes in real GDP. Then you tell them that the stages of a business cycle in correct order are:
- trough, expansion, recession, peak
- expansion, trough, recession, peak
- expansion, peak, recession, trough
A: expansion, peak, recession, trough

Q: A business cycle reflects changes in real GDP. The stages of a business cycle in correct order are:
- trough, expansion, recession, peak.
- expansion, trough, recession, peak.
- expansion, peak, recession, trough.
A: expansion, peak, recession, trough.

Q: Which of the following best describes a business cycle?
- The cyclical movement in interest rates.
- Regular fluctuations of prices.
- Periods of increasing and decreasing real GDP.
A: Periods of increasing and decreasing real GDP.

Q: Which of the following is true?
- The timing of business fluctuations is regular and therefore easily predictable.
- During the contractionary phase of the business cycle, the rate of unemployment is generally quite low.
- The expansions and contractions of real world business cycles last varying lengths of time and often differ in magnitude.
A: The expansions and contractions of real world business cycles last varying lengths of time and often differ in magnitude.

Q: The country of Bolivia had a Gross Domestic Product of $79 billion in 2016 and a population of 11 million people, the GDP per capita would be ________.
- $7.2
- about $14,000
- $7,182
A: $7,182

Q: The country of Russia had a Gross Domestic Product of about $4 trillion in 2016 and a population of 142 million people, the GDP per capita would be ________.
- $2,800
- $35,500
- $28,000
A: $28,000

Q: If the country of Zooland has a Gross Domestic Product per capita of $45,000 in 2017 and its GDP grows by 2% in 2018 while its population grows by 3%, the GDP per capita in 2018 would be
- higher than the GDP per capita in 2017.
- there is not enough information to compare the two GDPs per capita.
- lower than the GDP per capita in 2017.
A: lower than the GDP per capita in 2017.

Q: The country of Andorrata’s Gross Domestic Product in 2016 was $31,000 per capita. The GDP grew by 4% in 2017 while the population grew by 2%. What would the per capita GDP in 2017 be?
- The GDP per capita in 2017 would be lower.
- There is not enough information to compare the two GDPs per capita.
- The GDP per capita in 2017 would be higher.
A: The GDP per capita in 2017 would be higher.

Q: If a country’s Gross Domestic Product increases faster than its population, its GDP per capita would
- fall.
- not change significantly.
- rise.
A: rise.

Q: If a country’s Gross Domestic Product increased slower than its population increase, the country’s GDP per capita would
- rise.
- not change significantly.
- fall.
A: fall.

Q: Use the data from the following table to calculate the GDP per capita of each country. The GDP per capita for Estonido and for Galicia in 2017 is

Country | Year | GDP (billions in U.S. $) | Population (millions)
Estonido | 2017 | 525.50 | 73
Galicia |  | 1,658.00 | 118.25
Estonido | 2018 | 721.75 | 78
Galicia |  | 1,724.30 | 121.8
- $9,253 for Estonido and $14,157 for Galicia in 2017.
- $720 for Estonido and $1,402 for Galicia in 2017.
- $7,199 for Estonido and $14,021 for Galicia in 2017.
A: $7,199 for Estonido and $14,021 for Galicia in 2017.

Q: Use the data from the following table to calculate the GDP per capita of each country. The GDP per capita for Estonido and for Galicia in 2018 is

Country | Year | GDP (billions in U.S. $) | Population (millions)
Estonido | 2017 | 525.50 | 73
Galicia |  | 1,658.00 | 118.25
Estonido | 2018 | 721.75 | 78
Galicia |  | 1,724.30 | 121.8
- $7,199 for Estonido and $14,021 for Galicia in 2017.
- $925 for Estonido and $1,412 for Galicia in 2017.
- $9,253 for Estonido and $14,157 for Galicia in 2017.
A: $9,253 for Estonido and $14,157 for Galicia in 2017.

Q: If Ali grows hot peppers in his garden for his own consumption, the value of his production will
- be included in Gross Domestic Product and give an accurate account of the value of the production in his country.
- not be included in Gross Domestic Product and give an accurate account of the value of the production in his country.
- not be included in Gross Domestic Product and understate the value of the production in his country.
A: not be included in Gross Domestic Product and understate the value of the production in his country.

Q: Inequalities in the distribution of income are
- reflected in the Gross Domestic Product and improve GDP as a measurement of standard of living.
- not reflected in the Gross Domestic Product and improve GDP as a measurement of standard of living.
- not reflected in the Gross Domestic Product and diminish GDP as a measurement of standard of living.
A: not reflected in the Gross Domestic Product and diminish GDP as a measurement of standard of living.

Q: Gross Domestic Product is a/an ________ measurement of standard of living because ________.
- perfect; all important determinants of standard of living are incorporated
- imperfect; all important determinants of standard of living are incorporated
- perfect; not all important determinants of standard of living are incorporate
- imperfect; not all important determinants of standard of living are incorporated
A: imperfect; not all important determinants of standard of living are incorporated

Q: Gross Domestic Product is a/an ________ measurement of standard of living because ________.
- perfect; all important determinants of standard of living are incorporated
- imperfect; all important determinants of standard of living are incorporated
- perfect; not all important determinants of standard of living are incorporated
- imperfect; not all important determinants of standard of living are incorporated
A: imperfect; not all important determinants of standard of living are incorporated

Q: Which of the following factors important in determining our standard of living are not reflected in the Gross Domestic Product?
- The value of our imports, the improvements in product quality.
- The value of our imports and exports, the value of leisure.
- The value of leisure, the quality of our environment, improvements in products quality.
A: The value of leisure, the quality of our environment, improvements in products quality.

Q: What factors are left out of the Gross Domestic Product calculation but are still necessary in determining and reflecting our standard of living?
- The value of our imports, the improvements in product quality.
- The value of our imports and exports, the value of leisure.
- The value of leisure, the quality of our environment, improvements in products quality.
A: The value of leisure, the quality of our environment, improvements in products quality.

Q: Sarah lives in Montana and works remotely with a company in Portland. She lives in Montana because of the fresh air, clean water and wide open spaces to go hiking on her time after work. Is Sarah’s environmental quality reflected in factoring the Gross Domestic Product and why or why not?
- The quality of Sarah’s environment is included in GDP because it improves her standard of living.
- Sarah’s clean natural environment is left out of the GDP because it distracts Sarah from being productive with her work.
- Sarah’s environmental quality is left out of GDP because GDP focuses on productivity rather than Sarah’s well being or standard of living.
A: Sarah’s environmental quality is left out of GDP because GDP focuses on productivity rather than Sarah’s well being or standard of living.

Q: Gustavo lives in New York City and gets to work on a 10 minute subway ride. He lives in NYC because of the variety of events, restaurants, museums, education and people to experience on a daily basis. Is Gustavo’s NYC standard of living reflected in factoring the Gross Domestic Product and why or why not?
- The quality of Gustavo’s environment is included in GDP because it improves his standard of living.
- The value of our imports, the improvements in product quality.
- Gustavo’s dynamic social environment is left out of the GDP because it distracts Gustavo from being productive with his work.
- Gustavo’s environmental quality is left out of GDP because GDP focuses on productivity rather than Gustavo’s well being or standard of living.
A: Gustavo’s environmental quality is left out of GDP because GDP focuses on productivity rather than Gustavo’s well being or standard of living.

Q: Which of these statements describes an economy’s stock of human capital?
- Number of hours worked per year.
- Productivity per worker.
- Number of engineering degrees held by workers.
A: Number of engineering degrees held by workers.

Q: Which of the following is an example of human capital in regards to the economy?
- The total number of hours Stephen worked this year.
- How productive Dyana has worked this year.
- The medical license and degree that Sharon obtained for her nursing profession.
A: The medical license and degree that Sharon obtained for her nursing profession.

Q: ________ is the value of output per hour of labor input.
- Human capital
- GDP per capita
- Labor productivity
A: Labor productivity

Q: Labor productivity is
- the value of the production or output per worker.
- the production or output per hour.
- the production or output per worker per hour.
A: the production or output per worker per hour.

Q: Investment in human capital
- is of minor importance to economic growth.
- cannot be acquired through on-the-job training.
- is an important source of labor productivity.
A: is an important source of labor productivity.

Q: Which of the following is an important source of labor productivity?
- The market demand for products.
- Low interest on business loans.
- Human capital
A: Human capital

Q: Which of the following is unlikely to affect labor productivity?
- The quality and quantity of available capital resources.
- Technological change.
- The frequency of business cycles.
A: The frequency of business cycles.

Q: Of the following examples, which one has little or no effect on labor productivity?
- The quality and quantity of available capital resources.
- Technological change.
- The frequency of business cycles.
A: The frequency of business cycles.

Q: Which is a factor that drives economic growth?
- Improved investment opportunities.
- Decreased unemployment.
- Increased human capital.
A: Increased human capital.

Q: Which factor drives economic growth?
- Increased government spending.
- Decreased unemployment.
- Improved technology.
A: Improved technology.

Q: Which factors contribute to economic growth?
- A decrease in the quantity of labor due to emigration.
- A decline in the stock of physical capital.
- An increase in university graduates.
A: An increase in university graduates.

Q: Which of the following factors contribute to economic growth?
- A decrease in the quantity of labor due to emigration.
- A decline in the stock of physical capital.
- The discovery of a new technology.
A: The discovery of a new technology.

Q: Which factors would increase the aggregate production function?
- Aging airport facilities that cause flight delays.
- Significant increase in hourly wages for manufacturing workers.
- A robot that fills up prescriptions faster and more accurately than pharmacists.
A: A robot that fills up prescriptions faster and more accurately than pharmacists.

Q: An increase in education and training for the workforce would
- have no impact on the aggregate production function.
- increase Gross Domestic Product but not the aggregate production function.
- increase the aggregate production function.
A: increase the aggregate production function.

Q: A nation achieves economic growth when its:
- sum of goods and services produced exceeds the level of neighboring countries.
- real GDP has reached a peak in the business cycle.
- production possibilities frontier shifts outward.
A: production possibilities frontier shifts outward.

Q: How would you interpret a graph of a nation when its production possibilities frontier shifts outward?
- The sum of goods and services produced exceeds the level of neighboring countries.
- The country’s real GDP has reached a peak in the business cycle.
- The country is achieving economic growth.
A: The country is achieving economic growth.

Q: When discussing economic growth, it is often useful to focus on ________, to avoid studying changes in the size of GDP that represent only having more people in the economy, and focus on those increases in GDP which represent an actual rise in income of the average person.
- economic growth
- consumption and expenditures
- GDP per capita
A: GDP per capita

Q: Economists typically measure economic growth by tracking
- the employment rate.
- the unemployment rate.
- real GDP per capita.
A: real GDP per capita.

Q: Which of the following is most likely to contribute to economic growth as measured by GDP per capita?
- business cycle peaks
- rapid population growth
- increased stock of physical capital
A: increased stock of physical capital

Q: A nation might achieve higher economic growth if it:
- limits immigration.
- taxes investment in capital.
- devotes more resources to technology research and development.
A: devotes more resources to technology research and development.

Q: Which of the following is unlikely to result in economic growth?
- Installing a network of irrigation ditches and pumping stations in order to grow fruits and vegetables in parts of southern California.
- The invention of a threshing machine for harvesting grains.
- An increase in consumption and decline in savings.
A: An increase in consumption and decline in savings.

Q: Which of the following factors contribute to economic growth?
- An increase in the standard of living.
- A decrease in the productivity of labor.
- An increase in population.
A: An increase in population.

Q: The most important determinant of the average wage level in the economy is ________.
- the number of hours worked
- total quantity of output
- the value of output per hour worked
A: the value of output per hour worked

Q: If you are focusing on the value of output per hour worked you are considering
- the value needed to compute the position in a business cycle.
- The value of output per hour of government workers.
- the most important determinant of the average wage level in the economy.
A: the most important determinant of the average wage level in the economy.

Q: Generally, the average wage is
- negatively correlated to labor productivity.
- positively correlated to the value of output or production.
- positively correlated to labor productivity.
A: positively correlated to labor productivity.

Q: When labor productivity increases over time, generally
- it is due to increases in the number of workers.
- it results in higher prices for goods and services.
- so do average wages.
A: so do average wages.

Q: If the total number of hours worked per year increases, then automatically
- the value of the production per hour worked will also increase.
- the production or output per worker will also increase.
- the value of the production will increase.
A: the value of the production will increase.

Q: For productivity to increase
- the total production or output has to increase.
- the total number of hours worked has to increase.
- the value of the production per hour worked has to increase.
A: the value of the production per hour worked has to increase.

Q: The country of Wakanda for 2018 has a GDP of $555 billion, with a total of 2 million workers, each of which averages 1400 work hours a year. What is the value of the output per worker per hour of work?
- $1980
- $792
- $198
A: $198

Q: The country of Wakanda in 2017 had a GDP of $500 billion, with a total of 1.75 million workers, each of which averages 1600 work hours a year. What is the value of the output per worker per hour of work?
- $1790
- $716
- $179
A: $179

Q: Which of the following would NOT result in capital deepening?
- Increase in quantity and quality of physical capital.
- Increase in quantity and quality of human capital.
- Increase in amount of money available to businesses start ups.
A: Increase in amount of money available to businesses start ups.

Q: If a government wanted to raise capital deepening it should
- lower taxes and regulations.
- encourage entrepreneurship.
- invest in education and research.
A: invest in education and research.

Q: If workers have devices with better technologies available to them,
- it should increase profit for businesses.
- it should increase cost for businesses.
- it would increase capital deepening.
A: it would increase capital deepening.

Q: The Helper Company’s customer service representatives received new computers and training on how to utilize them best. In regards to measuring productivity, these new computers and updated technology knowledge have
- increased profit for the Helper company.
- increased costs for the Helper company.
- increased capital deepening for the Helper company.
A: increased capital deepening for the Helper company.

Q: In general, capital deepening results in
- inflation.
- higher financing options for businesses.
- greater economic growth.
A: greater economic growth.

Q: Capital deepening generally
- results in inflation.
- results in higher financing options for businesses.
- results in greater economic growth.
A: results in greater economic growth.

Q: Cree industrial lighting company is looking to deepen its capital. Which one of these steps should the Cree company take to accomplish this?
- Refinance their business loans and decrease their carried debt amount.
- Restructure and reorganize its departments to shorten production time.
- Invest in additional education and advanced training programs for their employees.
A: Invest in additional education and advanced training programs for their employees.

Q: The current competitive economy has caused the Doggie Dog Food company to brainstorm in their latest meeting on how to become more productive and efficient. Larry the VP of operations suggests that they deepen the company’s capital. Which of the follow steps should the Doggie Dog Food company take to deepen its capital?
- Refinance their business loans and increase their financial capital.
- Invest in developing three new flavors for their dog food.
- Invest in additional training for their dog food scientist and nutritionist updating with the latest dog food and health knowledge.
A: Invest in additional training for their dog food scientist and nutritionist updating with the latest dog food and health knowledge.

Q: To achieve economic growth, a nation should
- use less capital and more labor in the production process.
- increase unemployment benefits.
- promote research and technological innovation.
A: promote research and technological innovation.

Q: According to growth accounting studies, the most important factor in economic growth is
- education.
- Investment in physical capital.
- technology.
A: technology.

Q: According to growth accounting studies, a country would achieve better results by promoting
- research.
- education.
- research and education.
A: research and education.

Q: According to growth accounting studies, a country would achieve better results by promoting
- private higher education.
- limitations on immigration.
- government funded research projects.
A: government funded research projects.

Q: You are explaining the growth accounting studies to your best friend. You tell them that the best way to achieve greater technological progress for a country is for it to
- continue to pursue traditional ways of working.
- have the central bank inject more money into the economy.
- invest in education and research.
A: invest in education and research.

Q: According to growth accounting studies, investing in research and education
- does not achieve as much growth as technology improvement would.
- is less effective than on the job training.
- is the best way to achieve greater technological progress.
A: is the best way to achieve greater technological progress.

Q: According to the growth accounting studies, if you lived in a country where illiteracy was high and 40% of the children left school early and did not complete their education what would probably the results for that country?
- The economic status of the country would continue to rise.
- More technological breakthroughs would happen in this country.
- There would be both a human and economic loss.
A: There would be both a human and economic loss.

Q: If you lived in a country where literacy was high and 90% of the children completed their education with a high percentage going on to a higher education, what would probably be the results for the country?
- The economic status of the country would continue to fall.
- There would be both a human and economic loss.
- More technological breakthroughs would happen in this country.
A: More technological breakthroughs would happen in this country.

Q: Country A’s real GDP is growing at a rate of 2 percent per year. Using the rule of 72, it will take country A ________ to double its GDP.
- 18 years
- 2 years
- 36 years
A: 36 years

Q: If a country doubles its Gross Domestic Product in 8 years, its average growth rate would have been
- 11%.
- 5.8%.
- 9%.
A: 9%.

Q: Sustained economic growth
- can be achieved with growth rate over 8% to rapidly boost an economy.
- has not been achieved by most countries in the 20th century.
- is key because over a long period of time small yearly growth rate compound.
A: is key because over a long period of time small yearly growth rate compound.

Q: Because of the compounding effect,
- large yearly growth rates are needed to achieve sustained growth.
- interest compounding allow the economy to grow faster.
- small changes in economic growth rate lead to large GDP changes over time.
A: small changes in economic growth rate lead to large GDP changes over time.

Q: Compound growth in an economy can increase people’s standard of living for country Z. If the economy for country Z starts with a GDP of 150 and a growth rate of 2% per year, what will its GDP be after 15 years?
- 360
- 195
- 202
A: 202

Q: The standard of living for country Y is affected by compounded growth. If the economy for country Y starts with a GDP of 200 and a growth rate of 4% per year, what will its GDP be in 20 years?
- 202
- 360
- 438
A: 438

Q: The country of Wachovia has an economy that will double in 144 years. From what you’ve learned of the power of compound growth what does this mean for Wachovia?
- Wachovia has a thriving and rapidly growing economy growing over 1% per year.
- Wachovia has a somewhat stalled economic growth of over 1% per year.
- Wachovia has a slow growing economy at a growth rate of .5% per year.
A: Wachovia has a slow growing economy at a growth rate of .5% per year.

Q: The country of Wakanda has an economy that will double in 10 years. According to what you’ve learned about compound growth, what type of economy does Wakanda have?
- Wakanda has a slow growing economy at a growth rate of 7% per year.
- Wakanda has an economic growth rate of under 5% per year.
- Wakanda has a thriving and rapidly growing economy growing over 7% per year.
A: Wakanda has a thriving and rapidly growing economy growing over 7% per year.

Q: Over the course of human history:
- economic growth follows a steady, long-term upward path.
- all countries have achieved substantial gains in per capita GDP since the 19th century.
- economic growth has brought about substantial gains in incomes and standards of living in many countries.
A: economic growth has brought about substantial gains in incomes and standards of living in many countries.

Q: Throughout human history economic growth
- follows a steady, long-term upward path.
- has achieved substantial gains in per capita GDP since the 19th century for all countries.
- has brought about substantial gains in incomes and standards of living in many countries.
A: has brought about substantial gains in incomes and standards of living in many countries.

Q: A long-run process that occurs as a country’s potential output increases is the description for
- government spending and net exports.
- goods produced within a four-month period.
- economic growth.
A: economic growth.

Q: Economic growth is
- the sum of consumption, investment, government spending and net exports.
- the quantity of goods produced within a four-month period.
- a long-run process that occurs as a country’s potential output increases.
A: a long-run process that occurs as a country’s potential output increases.

Q: Economic growth has been
- sustained and rapid since the 1500’s.
- sustained and rapid since the 20th century.
- sustained and rapid since the 1800’s.
A: sustained and rapid since the 1800’s.

Q: Since the 1800’s economic growth has been
- spotty and halting.
- untouched by the industrial revolution and technological changes.
- sustained and rapid.
A: sustained and rapid.

Q: Which of the following choices is a true statement about the roots of modern economic growth?
- Modern economic growth finds its roots in democratic political systems.
- Modern economic growth finds its roots in cultural factors.
- Modern economic growth finds its roots in technological progress and industrialization.
A: Modern economic growth finds its roots in technological progress and industrialization.

Q: Modern economic growth finds its roots in
- democratic political systems.
- cultural factors.
- technological progress and industrialization.
A: technological progress and industrialization.

Q: Contractual laws, by establishing recourse (protection) for parties involved,
- reduces inflation.
- prevents recessions.
- promotes economic transactions and growth.
A: promotes economic transactions and growth.

Q: A way to increase economic transactions,
- includes reducing the number of patents (exclusive rights to a product or process).
- Includes higher taxes to fund local government.
- includes enforcing contractual laws that protect parties involved in contacts.
A: includes enforcing contractual laws that protect parties involved in contacts.

Q: Political stability and property rights protection
- ensure income equality.
- guarantees low unemployment.
- promote economic growth.
A: promote economic growth.

Q: Which of the following promotes economic growth?
- A clean natural environment.
- Geographic location.
- Political stability and property rights protection.
A: Political stability and property rights protection.

Q: In the long run, important sources of an increase in a nation’s economic growth include(s):
- zero rate of population growth.
- low college graduation rates.
- high rate of labor force growth.
A: high rate of labor force growth.

Q: Important sources that influence a nation’s economic growth in the long run include(s):
- zero rate of population growth.
- low college graduation rates.
- high rate of labor force growth.
A: high rate of labor force growth.

Q: The country of Norway has offers free college to students and even some universities offer free tuition to international students. Why would the Norwegian government support this tuition free environment?
- To increase the number of programs where national taxes can be applied.
- To contribute to economic health and growth by keeping more money in the pockets of students.
- To facilitate capital deepening by getting a better educated populace.
A: To facilitate capital deepening by getting a better educated populace.

Q: China had special economic zones originally in places such as Hong Kong and Shenzhen set up back in the 1980s. Why would the Chinese government support these areas with different rules like no tax on trade or different economic laws?
- To increase the number of programs where national taxes can be excised.
- To contribute to economic health and growth by keeping more money in government.
- To facilitate a healthy economic environment and grow international trade.
A: To facilitate a healthy economic environment and grow international trade.

Q: Economic growth is supported by
- laws restricting trade between nations.
- laws limiting access to private property.
- laws that build trust between parties.
A: laws that build trust between parties.

Q: Laws that built economic trust and stability
- guarantee businesses profit.
- limit inflation.
- increase economic growth.
A: increase economic growth.

Q: One of the important factors supporting economic growth is
- laws ensuring low prices.
- a strong currency.
- an effective system of laws.
A: an effective system of laws.

Q: Lack of property rights
- encourage production.
- increases productivity.
- diminish economic growth.
A: diminish economic growth.

Q: Frankini has a coffee shop business he opened in the small country of Timpopo. After paying for his business license he opened the shop. Business has be increasing, but he is continually squeezed by corrupt policemen wanting bribes for protection and greedy politicians continually making new rules to extract more money from his business. Frankini’s business environment is not really supportive. What would make business in Timpopo better?
- More international trade unions.
- Government programs to assist the poor and needy.
- A set of effective laws and adequate protection under those laws.
A: A set of effective laws and adequate protection under those laws.

Q: Kendra started her wedding boutique business in the country of Mexico. After paying her licensing fees and filing the proper paperwork, she business license he opened the shop. Business has be increasing, and she finds it easy to understand her tax duties and legal requirements to run her shop. She knows that if there is ever a problem there is a clear way to settle things because the government has spelled out the rules and laws. Why is starting and running her business easy for Kendra?
- There are more opportunities to pay for things online.
- There are more government programs to assist the poor and needy.
- There is a set of effective laws and adequate protection under those laws for her business.
A: There is a set of effective laws and adequate protection under those laws for her business.

Q: Wesley lives in a country with little protection under the law for conducting business or bringing his ideas about a revolutionary new car tire to the market with patent production. Because of the economic conditions what will Wesley most likely do?
- Develop his tire and bring it to market with ease and minimal cost.
- Keep his ideas in a notebook and sell them to the highest bidder.
- Find a country where he can develop his tire idea and have it protected under strong patent laws.
A: Find a country where he can develop his tire idea and have it protected under strong patent laws.

Q: Jerusha lives in a country with a large amount of protection under the law for conducting business or bringing her ideas to the market with patten production. Because of the economic conditions what will Jerusha most likely do with her rainwater collecting invention?
- Keep her ideas in a notebook and sell them to the highest bidder.
- Find a country where she can develop her idea away from strong patent laws.
- Develop her invention and bring it to market with ease and minimal cost.
A: Develop her invention and bring it to market with ease and minimal cost.