Assume that the real income of developing Island increases from $120,000 to $160,000 from 2005 to 2006 while its population expands from 1000 to 1100 during the same period Real income per capita has increased by about ?

A. $145
B. $40,000
C. $25
D. $100

A country’s export commodity concentration ratio is the ?

A. Average annual investment made in production of exported commodities
B. Proportion of the primary export commodity in total exports
C. Ratio of four leading commodities to total merchandise exports
D. Total annual investment made in production of exported commodities

Increasing in the real GNP per capita occur when ?

A. Government programs direct resources away from investment goods to consumer goods.
B. Tariffs and quotas prevent countries from trading and thus prevent dollars from leaving each country
C. The rate of growth in real gnp is greater than the rate of growth in the population
D. The level of consumption expenditures rises relative to the level of savings

What is gross domestic product (GDP) ?

A. Income earned through foreign exchange
B. The number of dollars earned in industry
C. Income earned within a country’s boundaries
D. Goods received from the nation’s residents

A country’s capital stock is the ?

A. Approximated investment minus actual investment
B. Inflow of investment from abroad
C. Sum of previous gross investment minus depreciation
D. Difference between gdp and capital consumption

Export primary commodity concentration ratios are ?

A. Commodity exports as a percentage of gdp per capita of exporting country divided by importing country
B. Export earnings as a ratio of population
C. Total merchandise export divided by gross national income
D. Food, raw materials minerals and organic oils and fat as a percentage of total merchandise exports

Economic rent ?

A. Is productive activity to obtain private benefit from public action and resources
B. Are the payments above the minimum essential to attract the resources to the market?
C. Is the wage used to pay unskilled workers?
D. Does not include monopoly profits

The informal sector includes ?

I-aRtisans, cottage industrialists, petty traders, teashop proprietors
Ii- garbage pickers jitney unauthorized taxis repair persons
Iii- the self employed
Iv- activities with little capital skill and entry barriers

Which of the following is not a requirement for economic development ?

A. A temperate climate
B. Natural resources
C. An adequate capital bases
D. Technological advance

If a production function exhibits constant returns to scale ?

A. Doubling all of the inputs more than doubles output due to the catch-up effect
B. Doubling all of the inputs has absolutely no impact on output because output is constant
C. Doubling all of the inputs less than doubles output due to diminishing returns
D. Doubling all of the input’s doubles output