Econ Unit 17

Which of the following statements accurately describes catch-up growth? a. In one generation, China will be one of the richest countries in the world, if China's GDP per person continues to grow 9% per year. b. In one generation, Zimbabwe will be one of middle-income countries, since Zimbabwe's per person GDP fell by 27% in the last couple of decades. c. In one generation, even if China's GDP per person will decline 9% per year, China will remain one of richest countries in the world. d. In one generation, Zimbabwe will be the world richest country, since Zimbabwe's per person GDP grew 9% in the last couple of decades.

a. In one generation, China will be one of the richest countries in the world, if China's GDP per person continues to grow 9% per year.

Out of the following economic statistics, which is the best measure of economic prosperity? a. The level of real GDP b. The growth rate of real GDP c. The level of nominal GDP d. The price level

a. The level of real GDP

An organization that tries to encourage the flow of investment from advanced countries to poor countries is the a. World Bank. b. Organization of Less Developed Countries. c. Alliance of Developing Countries. d. International Development Alliance.

a. World Bank.

The catch-up effect refers to the idea that a. saving will always catch-up with investment spending. b. it is easier for a country to grow fast and so catch-up if it starts out relatively poor. c. population eventually catches-up with increased output. d. if investment spending is low, increased saving will help investment to "catch-up."

b. it is easier for a country to grow fast and so catch-up if it starts out relatively poor.

An understanding of the best ways to produce goods and services is called a. human capital. b. technology. c. physical capital. d. productivity.

b. technology.

Each day Sue works 8 hours and produces 7 units of goods and services. Mary works 10 hours each day and produces 10 units of goods and services. It follows that a. Sue's productivity is higher than Mary's. b. Sue's income per hour will be higher than Mary's. c. Mary's productivity is higher than Sue's. d. Sue's income per day will be higher than Mary's.

c. Mary's productivity is higher than Sue's.

Productivity is the amount of goods and services a. an economy produces. It is not linked to a nation's economic policies. b. an economy produces. It is linked to a nation's economic policies. c. produced for each hour of a worker's time. It is not linked to a nation's economic policies. d. produced for each hour of a worker's time. It is linked to a nation's economic policies.

d. produced for each hour of a worker's time. It is linked to a nation's economic policies.

Which of the following provide benefits to society at large and not just to the person(s) who pursues it? a. Both technological knowledge that is a public good and education b. Technological knowledge that is a public good, but not education c. Education, but not technological knowledge that is a public good d. Neither education, nor technological knowledge that is a public good

a. Both technological knowledge that is a public good and education

Which of the following is an example of human capital? a. The comfortable chair in your dorm room where you read economics texts b. The amount you get paid each week to work at the library c. The things you have learned this semester d. Any capital goods that require a human to be present to operate

c. The things you have learned this semester

Janet is a farmer. Which of the following are included in her human capital? a. Her tractor and what she's learned from experience b. Her tractor but not what she's learned from experience c. What she's learned from experience but not her tractor d. Neither her tractor nor what she's learned from experience

c. What she's learned from experience but not her tractor