Quiz 1
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%
Look again 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 rate than Germany between 1950 and 1990
Look again at Figure 2.14b which depicts the production function of grain for farmers under average growing conditions with the currently available technology. We can ascertain that:
A discovery of new high-yielding crop seeds would tilt the production function curve higher, pivoted anti-clockwise at the origin., and If there is an upper limit on the amount of grain that can be produced, then the curve will end up horizontal for large numbers of farmers.
Which of the following variables have followed the so-called 'hockey-stick' trajectory—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, labor productivity, atmospheric co2
Figure 2.3 shows different technologies for producing 100 metres of cloth. From the graph, what can we conclude?
Technology B dominates technology D
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. Based on the information above, which of the following statements is correct?
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.
Figure 2.1 shows an index of average real wages of skilled workers in London between 1264 and 2001. What can we conclude from this graph?
The average real wage increased by around 600% between 1850 and 2001.
Look again at 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 (government, 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.
Which of the following are examples of markets?
auction websites, touts selling tickets, sale of illegal arms
Which of the following are examples of private property?
computers belonging to your college and shares in a company
Imagine that the GDP per capita of a country had doubled every 100 years. You are asked to draw both linear and ratio scale graphs that plot GDP on the vertical axis, and the year on the horizontal axis. What will be the shapes of the curves?
linear scale graph: upward-sloping curve with increasing slope ratio scale graph: upward-sloping line
What does UK GDP per capita measure?
the total output of the UK's economy, divided by the country's population