What are some of the differences between the population policies of China and India? What factors may have contributed to their success or failure?
What will be an ideal response?
The case study provides some clues to the answer. This may be a nice question for students to reflect on the interplay between politics and economics. Efforts in India, a functioning democracy (despite the authoritarian tendencies of Mrs. Ghandi), has meant that population control have come up against resistance. On the other hand, China's ability, inherent in its political system, to enforce birth control policies has meant it has been more successful.
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If the inflation rate is 5 percent and the real interest rate is 2.5 percent, then the nominal interest rate is
A) 10 percent. B) -2.5 percent. C) 2.5 percent. D) 7.5 percent. E) 2 percent.
Everything else the same, if government expenditure increases by $400 billion and imports increase by $400 billion, then GDP
A) increases by $400 billion. B) increases by $200 billion. C) decreases by $400 billion. D) does not change. E) decreases by $200 billion.
Workers and firms both expect that prices will be 2.5% higher next year than they are this year. As a result,
A) aggregate demand will increase by 2.5%. B) the purchasing power of wages will rise if wages increase by 2.5%. C) workers will be willing to take lower wages next year, but not lower than a 2.5 percent decrease. D) the short-run aggregate supply curve will shift to the left as wages increase.
HAC standard errors and clustered standard errors are related as follows:
A) they are the same B) clustered standard errors are one type of HAC standard error C) they are the same if the data is differenced D) clustered standard errors are the square root of HAC standard errors