ECON 40 FINAL

The a country's pollution level changes according to the dominant industry in that country, the change in pollution is called

composition effect

When costs of chidren eductaion and costs of living rise

couples will choose to have fewer children

When rate of infant mortality falls

couples will choose to have fewer kids

A country with a Gini coefficient of 0.50 must have a higher level of per capita income than a country with a Gini coefficient of 0.40.

false

In the intensive production function, output and the capital-labor ratio are negatively related.

false

Increase in the youth population always leads to a demographic dividend

false

Low birth rates is always good for the economy

false

Per capita GDP included both market activities and estimates of non-market activities.

false

Which of the choices below is NOT an element of the Human Development Index (HDI)?

gini coefficient

Which of the following is a positive aspect of the per-capita GDP concept of development?

higher GDP allows people to buy more goods and services

In the trade-and-growth research literature, increased openness can have a positive impact on growth because:

It increases technological efficiency through positive technology externalities.

Borrowing to make financial investments is called

LEVERAGING

What is the relationship between house prices and quantity of houses demanded during a bubble?

Positive

Of the statements below, which describes the negative aspect of the Solow growth model or "old" growth theory?

Technology is accounted for as an exogenous parameter.

Climate change is the ultimate transboundary pollution problem because

everyone contributes, impact covers all countries, and the requisite solution requires all countries

A Gini coefficient of 0 represent perfect inequality in the distribution of income.

false

In human history, improvements in nutrition, hygiene, sanitation, healthcare, modern medicine

have led to lower death rates and higher population growth rates

The Lorenz curve and the Gini coefficient are best described as measures of:

income distribution

When a country's pollution falls as result of greater proportion of income devoted to green technologies and environmental regulation and enforcement, this is called

income effect

Capital deepening is the result of:

increased amounts of capital relative to labor

Based from the table above choose the answer that best complete the sentence: _______ has comparative advantage in industries that are intensive in Sulfur Dioxide generation while _______ has comparative advantage in industries that produce less Sulfur Dioxide

latin america, south asia

Which of the concepts below mean that there is a "lack of incentive to guard against risk where one is protected from its consequences?"

moral hazard

Choose the answer that best completes the sentence: The Environmental Kuznets Curve (EKC) is a graphical representation of the relationship between _________ and __________

per capita income and pollution

According to economists, the most straightforward "fix" for the climate change problem is to

put a price on carbon

Of the following effects of per capita income changes on pollution, which is always positive?

size effect

In new or endogenous growth theory, increased amounts of human capital affect:

technological efficiency

Which of the variables below is an exogenous variable in the Solow growth model or in "old" growth theory?

technology

Economic growth does not automatically guarantee human development.

true

Immigration may be a solution to a country's low birth rate problems

true

Some research suggests that exports of manufactured goods can generate positive technological externalities.

true

The PPP exchange rate is the rate at which US dollar prices of good are the same in the United States and the foreign country.

true

The education of girls and women tend to have larger measured positive externalities than the education of boys and men.

true

The higher the rate of population growth, the more investment is required for capital deepening.

true

True or False: in the old growth theory, capital deepening refers to each worker having more physical capital to work with, causing per capita GDP will increase

true

What was the origin of the global crisis of 2007 to 2009?

losses in housing mortgages in the United States

The figure illustrates a transboundary pollution problem wherein chemical waste is generated by Germany's industries and dumped into the Danube but Belgium is the one experiencing its negative impacts. The benefits and costs are labeled in the graph. Answer the question. Suppose we let Germany and Austria to bargain with each other and there are negligible transactions cost, how much chemical waste will be generated under this bargaining solution?

80 million tons

Which of these is the best example of External Debt Crisis

A country fails to pay back its debt to foreign nations

What is the Gini Coefficient?

A measure of inequality

Which of the following is the best example of hyperinflation?

A nation increases the money supply rapidly to make inflation more than 40% annually

Development is best viewed as:

Changes in the mix of agriculture, manufacturing and services.

Choose which of the following is not one of the United Nations Millennium Development Goals (MDGs)?

Eliminate by 2015 the number of people in extreme poverty.

What causes bubble demand curve to be shaped the way it is?

Extrapolative expectations and herding behavior

According to Reinert, which of the following are characteristics of development: I. Higher living standards; II. Rising Per Capita Income; III. Economic growth with equity; IV. Self-Reliance

all of the above

Which type of financial crisis is best defined by the following sentence?: A large devaluation or rapid depreciation in the value of domestic currencies

balance of payments and currency crisis'

Financial assets whose value depends on the value of another asset

derivate

Which of these choices of financial crisis is best defined by the following sentence: Sovereign default of debt obligations to domestic creditors or substantial restructuring of this debt.

domestic debt crisis

Imporvements in the job propsects of women of women

will result in lower fertility rates