1			A country's living standard is measured through:
			A)	Nominal GDP
			B)	Real GDP
			C)	Nominal GDP per capita
			D)	Real GDP per capita
2			Real GDP per person is influenced by:
			A)	Average labor productivity
			B)	Population size
			C)	Number of people employed
			D)	All of the above
3			The most important source of average labor productivity improvement is:
			A)	Technology
			B)	Entrepreneurship and management
			C)	Human capital
			D)	Physical capital
4			When the addition of capital to other inputs that are held constant results in an increase in output by less than the previous capital increase, this is known as:
			A)	Increasing returns to capital
			B)	Constant returns to capital
			C)	Diminishing returns to capital
			D)	Decreasing opportunity cost
5			If we were to graph the relationship between real GDP per worker and real capital per worker, the curve will be:
			A)	Horizontal
			B)	Vertical
			C)	Upward sloping
			D)	Downward sloping
6			Relatively small percentage growth rates in GDP per capita:
			A)	Have a large effect over a long period of time
			B)	Have a small effect even with long periods of time
			C)	Have a large effect in the short run
			D)	None of the above
7			If real GDP amounted to AED 200 billion, and the population amounts to 5 million, then the income per capita is:
			A)	30,000
			B)	35,000
			C)	40,000
			D)	45,000

Use the following information to answer questions 8 and 9:

<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/007712961x/946386/17_8_9.JPG','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (7.0K)</a>

8			Real GDP per capita in country A is:
			A)	20,000
			B)	25,000
			C)	30,000
			D)	35,000
9			Which of the following statements is true?
			A)	The standard of living in Country A is higher than that in Country B
			B)	The standard of living in Country A is lower than that in Country B
			C)	The standard of living in Country A is the same as that in Country B
			D)	None of the above
10			If a country's real GDP per capita growth rate is -2.3%, this means that:
			A)	The standard of living is improving
			B)	The standard of living is constant
			C)	The standard of living is deteriorating
			D)	None of the above