Economics Readings Site By Colin Ong

This blog has been created to provide an area for economics students to read about how economics impacts daily life. It is especially useful for students to understand the application of macroeconomics as communicated through the media and governmental websites.

This online resource has been set up for educational purposes.All rights are reserved by the various websites.

For further clarification, please email colin@mrmc.com.sg

MCQ 26

A reasonable measure of the standard of living in a country is
a.
real GDP per person.
b.
nominal GDP per person.
c.
real GDP.
d.
the growth rate of nominal GDP per person.
e.
nominal GDP.


ANSWER: 

A
Many East Asian countries are growing very quickly because
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.


ANSWER: 

A
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
a.
labour.
b.
physical capital/worker.
c.
human capital/worker.
d.
natural resources/worker.


ANSWER: 

A
If Germans invest in the UK economy by building a new Volkswagen factory, in the future UK GDP will rise by more than UK GNP.


ANSWER: 

T