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A reasonable measure of the standard of living in a country is

• real GDP per person.

• nominal GDP per person.

• real GDP.

• the growth rate of nominal GDP per person.

• nominal GDP.

Many East Asian countries are growing very quickly because

• they save and invest an unusually high percentage of their GDP.

• they have always been wealthy and will continue to be wealthy, which is known as the "snowball effect."

• they are imperialists and have collected wealth from previous victories in war.

• they have enormous natural resources.

When a nation has very little GDP per person,

• it is doomed to being relatively poor forever.

• none of these answers

• an increase in capital will likely have little impact on output.

• it has the potential to grow relatively quickly due to the "catch-up-effect."

• it must be a small nation.

Once a country is wealthy,

• it no longer needs any human capital.

• capital becomes more productive due to the "catch-up effect."

• none of these answers

• it may be harder for it to grow quickly because of the diminishing returns to capital.

• it is nearly impossible for it to become relatively poorer.

The opportunity cost of growth is

• a reduction in current investment.

• a reduction in current consumption.

• a reduction in taxes.

• a reduction in current saving.

For a given level of technology, we should expect an increase in productivity within a nation when there is an increase in each of the following except

• labour.

• physical capital/worker.

• human capital/worker.

• natural resources/worker.

Which of the following statements is true?

• Countries all have the same growth rate and level of output because any country can obtain the same factors of production.

• Countries have great variance in both the level and growth rate of GDP/person; thus, poor countries can become relatively rich over time.

• Countries may have a different level of GDP/person but they all grow at the same rate.

• Countries may have a different growth rate but they all have the same level of GDP/person.

If a production function exhibits constant returns to scale,

• doubling all of the inputs more than doubles output due to the catch-up effect.

• doubling all of the inputs has absolutely no impact on output because output is constant.

• doubling all of the inputs less than doubles output due to diminishing returns.

• doubling all of the inputs doubles output.

Copper is an example of

• a renewable natural resource.

• human capital.

• physical capital.

• technology.

• a non-renewable natural resource.

Which of the following statements regarding the impact of population growth on productivity is true?

• There is no evidence, yet, that rapid population growth stretches natural resources to the point that it limits growth in productivity.

• all of these answers

• Rapid population growth may dilute the capital stock, lowering productivity.

• Rapid population growth may promote technological progress, increasing productivity.