Many East Asian countries are growing very quickly because ?

They have always been wealthy and will continue to be wealthy, which is known as the “snowball effect”

They save and invest an unusually high percentage of their GDP

They have always been wealthy and will continue to be wealthy, which is known as the “snowball effect”

They are imperialists and have collected wealth from previous victories in war

They have enormous natural resources.

Which of the following is an example of foreign portfolio investment ?

Deutsche Bank of Germany buys some new software from UK Supplier

Toyota builds a new plant in the north of England

EDF of France buys shares in Scottish & Southern Energy of the UK, and Scottish & Southern Energy uses the Proceeds to build a new hydro-electric powe

Deutsche Bank of Germany buys some new software from UK Supplier

JCB builds a new plant near Manchester

To increase growth, governments should do all of the following except ?

encourage research and development

encourage foreigners to investment in your country

encourage saving and investment

encourage research and development

Which of the following describes an increase in technological knowledge ?

A farmer sends his child to agricultural college and the child returns to work on the farm

A farmer hires another day laborer

A farmer discovers that it is better to plant in the spring rather than in the fall

Which of the following government policies is least likely to increase likely to increase growth in Africa ?

increase expenditure on public education

All of these answers would increase growth

increase restrictions on the importing of American tractors and electronics

If Toyota builds a new plant in the north of England ?

There has been an increase in foreign portfolio investment in the UK

Once the plant starts producing cars UK GDP will rise less than UK GNP

once the plant starts producing cars UK GDP will rise more than UK GNP

Which of the following expenditures to enhance productivity is most likely to emit a positive externality ?

Naila pays her university tuition fees.

Indus Motors buys a new drill press

Which of the following could result in women being paid less than men ?

women obtaining less human capital because they don’t plan to work continuously to the age of retirement

Women entering and leaving the labour force to care for children

customers preferring to deal with men

women preferring to work in pleasant clean safe work places

The downward sloping marginal physical product of labor is the firm’s ?

Short-run demand curve for labor

marginal revenue product of labor

Which of the following is likely to generate a compensating differential ?

One employee is more attractive than another

One employee is more educated than another

One employee works harder than another

One employee is willing to work the nightshift while another is not.

A wage differential among groups may not by itself be evidence of discrimination in the labour market because different groups have ?

different preferences for the type of work they are willing to do

different levels of job experience

all of these answers are correct

Which of the following statements regarding discrimination is true ?

Bigoted employers are the main source of a persistent discriminatory wage differential in a competitive market

The existence of a wage differential among groups is strong evidence of discrimination in the labour market

Discrimination can only persist in a competitive labour market it customers are willing to pay to maintain the discriminatory practice or the governme

Bigoted employers are the main source of a persistent discriminatory wage differential in a competitive market

Discrimination cannot exist in a competitive labor market

Which of the following is not part of a worker’s human capital ?

all of these answers are parts of a worker’s human capital

Economists have hypothesized that the widening gap between the wages of unskilled workers and skilled workers may be due to ?

increase in the number of unskilled workers available due to immigration into the UK.

decrease in the demand for unskilled workers because of increases in technology and increases in international trade

increase in the number of unskilled workers available due to immigration into the UK.

decrease in the demand for unskilled workers are more poorly educated

increase in the number of unskilled workers available because workers are more poorly educated

In a competitive market, which of the following is least, likely to be the source of a persistent discriminatory wage differential ?

All of these answers could be source of a persistent discriminatory wage differential

All of the following would tend to increase a worker’s wage except ?

having a greater amount of natural ability

If a person who works in coal mine gets paid more than a person with a similar background and skills who works in a safer job, then ?

coal miners must be more attractive than other workers

coal miners must have greater human capital than others

we have observed a compensating differential

coal miners must be more attractive than other workers

we have evidence of discrimination against workers outside the coal mine

Which of the following statements regarding the impact of population growth on productivity is true ?

Rapid population growth may dilute the capital stock lowering productivity

There is no evidence, yet that rapid population growth stretches natural resources to the point that it limits growth in productivity

Rapid population growth may dilute the capital stock lowering productivity

Rapid population growth may promote technological progress increasing productivity.

Which of the following best describes the rate of growth in productivity in the United states over the last fifty years ?

Productivity grew slowly from the 1950s through the 1970s and then began to accelerate probably due to advances in computer technology

Productivity growth has been steady over the last 50 years

Productivity has been growing more slowly every decade since world War II

Productivity grew quickly in the 1950s and 1960s more slowly from the early 1970s through 1995 and then quickly again

Productivity grew slowly from the 1950s through the 1970s and then began to accelerate probably due to advances in computer technology

A reasonable measure of the standard of living in a country is ?

The growth rate of nominal GDP per person

Our standards of living is most closely related to ?

our supply of natural resources because they limit production

our supply of capital because everything of value is produced by machinery

our productivity because our income is equal to what we produce

our supply of natural resources because they limit production

When a national has very little GDP per person ?

it is doomed to being relatively poor forever

an increase in capital will likely have little impact on output

it has the potential to grow relatively quickly due to the “catch-up-effect”

If a production function exhibits constant returns to scale ?

doubling all of the inputs more than doubles output due to the catch-up effect

doubling all of the inputs has absolutely no impact on output because output is constant

doubling all of the inputs less than doubles output due to diminishing returns

doubling all of the input’s doubles output

Thomas Malthus argued that ?

technological progress will continuously generate improvement in productivity and living standards.

an ever-increasing population is constrained only by the food supply resulting in chronic faminies

technological progress will continuously generate improvement in productivity and living standards.

labor is the only true factor of production

Copper is an example of ?

a non-renewable natural resource

Once a country is wealthy ?

it no longer needs any human capital

capital becomes more productive due to the “catch-up- effect”

it may be harder for it to grow quickly because of the diminishing returns to capital

Which of the following statements is true ?

Countries may have different level of GDP/person but they all grow at the same reate

Countries all have the same growth rate and level of output because any country can obtain the same factors of production

Countries have great variance in both the level and growth rate of GDP/person thus poor countries can become relatively rich over time