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
Related Mcqs:
- Which of the following statements regarding the impact of population growth on productivity is true ?
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. - Which of the following statements is true about a market economy ?
A. With a large enough computer, central planners could guide production more efficiently than markets.
B. Market participants act as if guided by an invisible hand to produce outcomes that maximize social welfare
C. The strength of a market system is that it tends to distribute resources evenly across consumers.
D. Taxes help prices communicate costs and benefits to producers and consumers. - Which of the following statements is True ?
A. The overall sum of all the entries in the balance of payments must be positive
B. A country runs a current account surplus if it sells more of its assets abroad than it buys abroad
C. A country runs a capital account deficit if it imports more than it exports
D. If the current account is in surplus the capital account must be in deficit - Which of the following statements about economic fluctuations is true ?
A. None of these answers
B. A depression is a mild recession
C. A variety of spending income, and output measures can be used to measure economic fluctuation because most macroeconomic quantitties tend to fluctuate together
D. A recession is when output rises above the natural rate of output - Which of the following statements is true regarding the long-run aggregate supply curve? The long-run aggregate supply cruve ?
A. Is vertical because an equal change in all prices and wages leaves output unaffected
B. is positively sloped because price expectations and wages tend to be fixed is the long run
C. shifts right when the government raises the minimum wage
D. shifts left when the natural rate of unemployment falls - Which of the following statements is true ?
A. Long-term bonds tend to pay less interest than short-term bonds
B. Government bonds pay less interest than comparable corporate bounds
C. Investment funds are riskier than single stock purchases because the performances of so many different firms can affect the return of a mutual fund
D. A stock index is a directory used to locate information about selected stocks. - Which of the following statements about a binding price ceiling is true ?
A. The shortage created by the price ceiling is greater in the short ran than in the long run.
B. The surplus created by the price ceiling is greater in the short run than in the long run
C. The surplus created by the price ceiling is greater in the long run than in the short run
D. The shortage created by the price ceiling is greater in the long run than in the short run - Which of the following statements is true if the government places a price ceiling on petrol at Rs150 per litre and the equilibrium price is Rs100 per litre ?
A. A significant increase in the demand for petrol could cause the price ceiling to become a binding constraint.
B. A significant increase in the supply for petrol could cause the price ceiling to become a binding constraint.
C. There will be a shortage of petrol
D. There will be surplus of petrol - Which of the following statements about money is not true ?
A. A debit card is not really money because it is only a means of transferring money between accounts
B. All the wealth that people hold, in whatever form, should be considered as money
C. Wealth held in the current account you hold with your bank is almost as convenient for buying things as wealth held in your wallet so the wealth in current accounts should be included in measures of money
D. In a complex economy it is not easy to draw a clear dividing line between assets that should be considered as money and those that should not - Which of the following statements about stabilization policy is not true ?
A. Many economists prefer automatic stabilizers because they affect the economy with a shorter lag than activist stabilization policy
B. None of these answers are true
C. Long lags enhance the ability of policy makers to fine tune the economy
D. When policy makers implement activist stabilization policies there is a significant risk that their policies may actually have a destabilizing effect
