Refer to the above table. Suppose one country has a per capita real GDP of $1000 and another has a per capita real GDP of $10,000, or ten times larger. If both countries have a growth rate of 5 percent, how much larger will per capita real GDP be in the second country be than the first after 50 years?
A. 4 times larger
B. 5 times larger
C. 10 times larger
D. 8 times larger
Answer: C
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Whenever productive resources are used to make capital goods
A) society is not producing efficiently. B) society is giving up current consumption. C) the production possibilities curve becomes flatter. D) absolute advantage occurs.
Under which of the following scenarios would a park be considered a common resource?
a. Visitors to the park must pay an admittance fee, but there are always plenty of empty picnic tables. b. Visitors to the park must pay an admittance fee and frequently all of the picnic tables are in use. c. Visitors can enter the park free of charge and there are always plenty of empty picnic tables. d. Visitors can enter the park free of charge, but frequently all of the picnic tables are in use.
With respect to the dollar, a decrease in the number of dollars needed to purchase one unit of foreign exchange in a flexible exchange system is called currency appreciation
Indicate whether the statement is true or false
Which of the following is a characteristic of most offshore financial centers?
A) strict domestic regulation B) minimal banking activities C) large foreign currency markets D) nominal or non-existent tax rates