Econ quiz 1 s

Which of the following variables have followed the "hokey stick" growth that is little to no growth for most of history followed by a sudden and sharp change to a positive growth rate?

- GDP Per capita - labour productivity - atmospheric CO2

based on figure 2.14b, which depicts the production function of grain for farmers under average growing conditions with the currently available technology, we can assert that:

- a discovery of new high-yielding crop seeds would tilt the production function curve higher, pivoting anti-clockwise at the origin - if there is an upper limit on the amount of grain that can be produced, then then curve will end up horizontal for large number of farmers.

which of the following are examples of markets?

- auction websites like eBay - touts selling tickets outside concert halls - sale of illegal arms

Which of the following are examples of private property?

- computers belonging to your college - shares in a company

The GDP per capita of Greece was $22,494 in 2012 and $21,966 in 2013. Based on these figures, the growth rate of GDP between 2012 and 2013 was:

-2.35%

Imagine that the GDP per capita of a country had doubled every 100 years you are asked to draw both linear and a ratio scale graphs that slot GDP on the vertical axis, and the year on the horizontal axis. What will be the shape of the curves?

Linear scale graph: an upward sloping curve with an increasing slope (convex shape) Ratio scale: an upward-sloping straight line

Look at figure 1.10 which shows a graph of GDP per capita for west and east Germany, Japan and Spain between 1950 and 1990. Which of the following statements is correct?

Spain was able to grow at a higher growth rate than Germany between 1950 and 1990.

figure 2.3 shows different technologies for producing 100M of cloth. From the graph, what can we conclude?

Technology B dominates technology D

look at figure 2.1 and 2.19 showing graphs of real wages in England between 1300 and 2000. A lot of people died during the bubonic plague and in the 17th and 18th century, wages of unskilled workers relative to the incomes of land owners were only 1/5 of what they had been in the 16th century. What can we conclude from this information?

according to the Malthusian model, the fall in the population due to the bubonic plague would have led to an increase in the average productivity of workers, causing the observes rise in the real-wage post plague.

Look at the 3 isocost lines in figure 2.8. What can we conclude

iscots MN and FG represent the same price ratio (wage/ price of coal) but different total costs of production

Look at figure 2.20, which plots real wages against population in England from the 1280s to the 1860s. According to Malthus, with diminishing average product of labour in production and population growth in response to increases in real wages, an increase in productivity will result in a larger population but not higher real wages in the long run. Which of the following is true?

the Malthusian model does not take into account the possibility of a persistent positive technology shock that may offset the diminishing average product of labour.

according to figure 1.11, which of these conclusions is suggested by the graph

the contrasting performances of Botswana and Nigeria illustrate that rich natural resources alone do not guarantee higher economic growth, but that higher quality institutions (govt, markets and firms) may also be necessary

which of the following is an economic rent

the extra profit that a successful innovator makes on bringing a new product to the market before its competitors

what does UK GDP per capita measure?

the total output of the UK's economy, divided by the country's population