Question

1.         Consider the case where real GDP and population are both growing, and real GDP is growing faster than population.  Which statement below is TRUE?

A         Real GDP per capita would increase and faster than real GDP.

B          Real GDP per capita would increase but slower than real GDP.

C          Real GDP per capita would remain the same.

D         Real GDP per capita would fall.

Questions 2 and 3.  Both Cowen and Tabarrok (Figure 7.1) and the Hans Rosling video illustrate the robust empirical truth that the wealth and health of nations are positively correlated, both across countries at any given time and for every country over time.

2.         Cowen and Tabarrok set

A         GDP per capita, real U.S. dollars (2000) on the horizontal axis and infant survival rate per 1,000 live births on the vertical axis

B          GDP per capita, real U.S. dollars (2000) on the vertical axis and infant survival rate per 1,000 live births on the horizontal axis

C          life expectancy on the horizontal axis and income per person on the vertical axis

D         life expectancy on the vertical axis and income per person on the horizontal axis

3.         Hans Rosling sets

A         GDP per capita, real U.S. dollars (2000) on the horizontal axis and infant survival rate per 1,000 live births on the vertical axis

B          GDP per capita, real U.S. dollars (2000) on the vertical axis and infant survival rate per 1,000 live births on the horizontal axis

C          life expectancy on the horizontal axis and income per person on the vertical axis

D         life expectancy on the vertical axis and income per person on the horizontal axis

4.         Cowen and Tabarrok (Figure 7.4) highlight two growth miracles and two growth disasters.

A         The growth miracles are Argentina and Nigeria, the growth disasters are Japan and South Korea.

B          The growth miracles are Japan and South Korea, the growth disasters are Argentina and Nigeria.

5.         Differences in technological knowledge probably explain

A         a large fraction of the differences in the wealth of nations at any point in time

B          a small fraction of the differences in the wealth of nations at any point in time

6.         Increases in technological knowledge probably explain

A         a large part of why economic growth occurs over time

B          a small part of why economic growth occurs over time

7.         Which country’s economy has not converged with that of the U.S. since 1980?  (Choose one)

A         Hong Kong

B          North Korea

C          Singapore

D         South Korea

8.         South Korea has a much higher GDP per person than Ghana, West Africa, because it has institutions that make it in people’s self-interest to

A         invest in physical capital, human capital, and technological knowledge

B          efficiently organize these resources for production

C          both A and B

9.         Cowen and Tabarrok (Figure 7.7) illustrate the robust empirical truth that corrupt countries have

A         higher GDP per capita

B          lower GDP per capita

10.       In The Wealth of Nations Adam Smith described how the manufacture of pins is divided into no fewer than eighteen separate operations, and he explained how this was an example of (choose one)

A         economies of scale

B          the division of labor

11.       Industrialization is characterized by

A         economies of scale

B          international specialization and division of labor

C          both A and B

Answer 1

1.

B

Since Real GDP and population, both are increasing, then real GDP per capita, will also increase, but will a slower pace, than that of real GDP.

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2.

B

It is the axis values set by  Cowen and Tabarrok.

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3.

D

It is the axis values set by Hans Rosling. Here, income per person is on the horizontal axis and life expectancy is on vertical axis.

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4.

B

Japan and south Korea are the examples of high growth economies and wealth for their people. But, other two nations as mentioned are the growth disasters.

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5.

B

It is the small fraction in wealth that is explained by the difference in technology driven knowledge.

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6.

A

It is the phenomenon, observed over a period of time.

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7.

B

It is North Korea, whose economic growth has not converged with the USA.

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8.

C

South Korea is growing faster, because not only the resources are utilized efficiently, but also people believe in their own role in terms of human capital development, capital formation and other dimensions, that contributed to the growth.

Pl. repost other unanswered questions for their proper answers!