Author: Adden wafa

A. A farmer sends his child to agricultural college and the child returns to work on the farm
B. A farmer hires another day laborer
C. A farmer buys another tractor
D. A farmer discovers that it is better to plant in the spring rather than in the fall

A. none of these answers
B. an ever-increasing population is constrained only by the food supply resulting in chronic faminies
C. technological progress will continuously generate improvement in productivity and living standards.
D. labor is the only true factor of production

A. a renewable natural resource
B. physical capital
C. technology
D. a non-renewable natural resource

A. Countries all have the same growth rate and level of output because any country can obtain the same factors of production
B. Countries have great variance in both the level and growth rate of GDP/person thus poor countries can become relatively rich over time
C. Countries may have different level of GDP/person but they all grow at the same reate
D. Countries may have a different growth rate but they all have the same level of GDP/person

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 is doomed to being relatively poor forever
B. none of these answers
C. an increase in capital will likely have little impact on output
D. it has the potential to grow relatively quickly due to the “catch-up-effect”
E. It must be a small nation.

A. real GDP per person
B. nominal GDP per person.
C. Real GDP
D. The growth rate of nominal GDP per person

A. will always increase the quantity of saving
B. will always decrease the quantity of saving
C. will increase the quantity of saving if the substitution effect outweighs the income effect
D. will increase the quantity of saving if the income effect outweighs the substitution effect

A. stay the same
B. rotate inward
C. shift outward in a parallel fashion
D. rotates outward
E. shift inward in parallel fashion

A. an inferior effect
B. a Geffen good
C. a normal good
D. none of these answers