Category: Comparative GDP

A. a reduction in current investment
B. a reduction in current consumption
C. a reduction in taxes
D. a reduction in current saving

A. it no longer needs any human capital
B. capital becomes more productive due to the “catch-up- effect”
C. none of these answers
D. it may be harder for it to grow quickly because of the diminishing returns to capital

A. how hard we work:
B. our supply of capital because everything of value is produced by machinery
C. our productivity because our income is equal to what we produce
D. our supply of natural resources because they limit production

A. Toyota builds a new plant in the north of England
B. 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 power station in Scotland
C. Deutsche Bank of Germany buys some new software from UK Supplier
D. JCB builds a new plant near Manchester

A. There is no evidence, yet that rapid population growth stretches natural resources to the point that it limits growth in productivity
B. All of these answers
C. Rapid population growth may dilute the capital stock lowering productivity
D. Rapid population growth may promote technological progress increasing productivity.

A. increase expenditure on public education
B. eliminate civil war
C. All of these answers would increase growth
D. increase restrictions on the importing of American tractors and electronics

A. None of these answers
B. There has been an increase in foreign portfolio investment in the UK
C. Once the plant starts producing cars UK GDP will rise less than UK GNP
D. once the plant starts producing cars UK GDP will rise more than UK GNP

A. labor
B. physical capital/worker
C. human capital/worker
D. natural resources/worker

A. They save and invest an unusually high percentage of their GDP
B. They have always been wealthy and will continue to be wealthy, which is known as the “snowball effect”
C. They are imperialists and have collected wealth from previous victories in war
D. They have enormous natural resources.

A. doubling all of the inputs more than doubles output due to the catch-up effect
B. doubling all of the inputs has absolutely no impact on output because output is constant
C. doubling all of the inputs less than doubles output due to diminishing returns
D. doubling all of the input’s doubles output