Chapter 6 Flashcards
Last year real GDP per person in the imaginary nation of Olympus was $4,260. The year before it was $4,100. By about what percentage did real GDP per person grow during the period?
4%
Country Y has a population of 1,500, of whom 375 work 7 hours a day to make 128,000 final goods. Country Z has a population of 2,200, of whom 880 work 5 hours a day to make 384,000 final goods. Which of the following is true?
Country Y has lower productivity and lower real GDP per person than country Z.
Each day Sasha works 6 hours and produces 7 units of goods and services. Clara works 10 hours each day and produces 9 units of goods and services. It follows that
Sasha’s productivity is higher than Clara’s.
The Karmic Deed Restaurant uses all of the following to produce vegetarian meals. Which of them is an example of physical capital?
The tables and chairs in the restaurant
Apple founder Steve Jobs received patents on many of his ideas. While the patents existed, his ideas were
private goods and proprietary knowledge.
Michael learns how to sew from his grandmother. This is an example of
human capital, but not technological knowledge.
Which of the following countries benefited significantly from the catch-up effect in the last half of the twentieth century?
South Korea
If an American-based firm opens and operates a new clothing factory in Honduras, then it is engaging in
foreign direct investment.
A country with a relatively low level of real GDP per person is considering adopting two policies to promote economic growth. The first is to decrease barriers to trade. The second is to restrict foreign portfolio investment. Which of these policies do most economists say promote growth?
The first but not the second
Some poor countries appear to be falling behind rather than catching up with rich countries. Which of the following could explain the failure of a poor country to catch up?
The poor country has a health epidemic such as the Zika virus.
