Question

1 ) North Dakota's GDP per capita is $65,000, while South Dakota's GDP per capita is $48,000. Advances in technology increase North Dakota's GDP per capita over the following decade to $78,000. If South Dakota benefits in the same way from those technologies, what will South Dakota's GDP per capita be after a decade? A) $57,600 B) $61,000 C) $65,000 D) $78,000

2

) According to Malthus, when the standard of living in any economy is above subsistence, ________.

A) couples tend to

have more children

B) couples tend to have fewer children

C) consumption is more than saving

D) saving is more than consumption

3

) Which of the following statements is true?

A) Economic growth always reduces poverty.

B) Economic growth always reduc

es inequality.

C) Economic growth is ineffective in reducing both poverty and inequality.

D) Economic growth can reduce poverty only if it is not associated with a significant rise in inequality.

4

) Country A has experienced a greater average growth ra

te in GDP per capita than has Country B. Based

only on this, what would you predict about how the poverty rates changed in the two countries?

A) More than likely, the poverty rate in Country A has decreased faster than that of Country B.

B) Perhaps the pov

erty rate in Country A has decreased faster than that of Country B.

C) More than likely, the poverty rate in Country B has decreased faster than that of Country A.

D) Perhaps the poverty rate in Country B has decreased faster than that of Country A.

5

) If

a country's human capital improves, the country will have ________ for a given level of physical

capital stock.

A) a higher GDP

B) a lower GDP

C) more poverty

D) more inequality

Answer 1

1 )

Right answer: ( B)

Since here technology has added up already existing per capita income. Thus extra benefits would be same but per capita income will remain different in both regions.

2)

Answer: ( A)

According to Malthus, rise in living standard leads to rise in population of country.

3)

Answer: ( D)

GDP growth reduces poverty only if it is able to reduce the inequalities in society.

4)

Answer: (A)

Rise in per capita income of country usually associated with fall in poverty if there is no significant let up in inequalities.

5)

Answer: (A)

Human capital improves the productivity and that leads to rise in GDP.