Midterm 2

Midterm 2 - Midterm 2 spring 2007 1.Assume that average...

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Midterm 2 spring 2007 1.Assume that average labor productivity is the same in each country. Based on the information below, which country has the smallest real GDP per capita? P o p u l a t i o n S h a r e o f P o p u l a t i o n C o u n t r y ( m i l l i o n s ) E m p l o y e d ( % ) A 1 0 0 6 0 B 1 5 0 5 5 C 7 5 5 0 D 2 5 0 4 5 E 9 5 4 0 A) Country A B) Country B C) Country C D) Country D E) Country E 2.The benefits of economic growth are _____, while the costs of economic growth are _____. A) increased output per person; too small for concern B) increased output per person; the consumption sacrificed to capital formation C) increased output per person; less future consumption D) more current consumption; less future consumption E) more current consumption; no change in future consumption 3.International data on the relationship between the amount of capital per worker and average labor productivity indicate that there is a: A) positive relationship between the two variables. B) negative relationship between the two variables. C) no relationship between the two variables. D) positive relationship between the two variables for some countries, but a negative relationship between the two variables for other countries. E) positive relationship between the two variables for some countries, but no relationship between the two variables for other countries. Answer: A Learning Objective: Determinant of average labor productivit Level of Learning: Knowledge Type: Word Problem Source: Study Guide
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When a worker learns how to use a new business-related software program, this is an example of investing in: A) human capital. D) research and development. B) physical capital. E) economic growth C) the market. Answer: A Learning Objective: Human capital Level of Learning: Comprehension Type: Word Problem Source: Unique Real GDP per person in Westland is $30,000, while real GDP in Eastland is $10,000, However, Westland's real GDP per person is growing at 1.5 % per year and Eastland's is growing at 3% per year. If these growth rates persist indefinitely, then: A) Westland's real GDP per person will decline until it equals Eastland's. B) Westland's real GDP per person will always be greater than Eastland's. C) Eastland's real GDP per person will always be less than Westland's. D) Eastland's real GDP per person will eventually be greater than Westland's. E) Eastland's real GDP per person will catch up to Westland's, but never exceed Westland's. Answer: D Learning Objective: Small differences in growth rates Level of Learning: Comprehension Type: Word Problem Source: Web Real GDP per person in both Alpha and Omega equals $2,000. Over the next 100 years real GDP per person grows at 1.5 percent annual rate in Alpha and at a 2.5 percent annual rate in Omega. After 100 years real GDP person in Alpha is _____ smaller than real GDP per person in Omega. A) $2,000
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This note was uploaded on 05/02/2009 for the course ECON 2010 taught by Professor Roussel during the Spring '08 term at LSU.

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Midterm 2 - Midterm 2 spring 2007 1.Assume that average...

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