Quizlet gdp per head may be an imperfect measure of

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Quizlet GDP per head may be an imperfect measure of economic welfare because it excludes _________ o the value of leisure, externalities, untraded goods, changes in the distribution of income Potential output can be increased by _____________ or by ______________ o increasing the use of all inputs, technical advances If a production input is in fixed supply, growth is impossible in the long run FALSE The convergence hypothesis states that poor countries grow more slowly than average, but rich countries grow more quickly than average FALSE Questions from wiley (review quiz for each chapter)
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CH 6 1. If capital displays diminishing marginal productivity, no steady state will exist. FALSE 2. Increasing human capital increases the marginal productivity of capital TRUE 3. Empirical evidence looking at all countries shows that GDP per capita converges between developing and developed countries FALSE 4. Which region in the world has displayed the worst economic performance since early 1800? Africa 5. Which of the following has not been used to explain the poor economics performances of Africa: Low government purchase 6. Which of the following decreases the ability of a region to benefit from international trade? A large landlocked population 7. Which of the following has positive impact on steady state? High investment 8. Which of the following government actions would benefit economic growth? Establishing a consistent regulatory structure over financial sector 9. A key argument against the importance of geography as a determinant of economics performance is that: 500 years ago there were many flourishing African cities 10. Which of the following is not a reason why countries relying on natural resources often have low growth: Natural resource extraction is highly capital intensive 11. The balance of evidence suggests that development aid: does not help economic development CH7 1. An increase in the number of capital good tents to increase the demand for labour TRUE 2. As union power increases the natural rate of unemployment typically increases TRUE 3. EPL is intended to reduce unemployment but may have the opposite effect TRUE 4. Technological progress has increased the demand for labour TRUE 5. The participation rate is defined as the proportion of the civilian noninstitutional population who are in the labour force. TRUE 6. Of the following people, who is most likely counted as unemployed? A computer programmer laid off during an economic downturn 7. Which of the following defines the unemployment rate? No of ppl unemployed/ labour force 8. Which of the following statements is correct? As wages increase the income effect tends to reduce the quantity of labor supplied.
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