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