Q: Which formula correctly calculates the average product of labour?

$$\text{average product of labour} = \frac{\text{total output}}{\text{total number of farmers}}$$

Question 1

Which of the following best describes the 'hockey-stick' growth pattern observed in global GDP per capita since 1700?

Accepted Answer

A long period of little or no growth followed by a sharp and sustained increase in GDP per capita.

Question 2

According to the Malthusian model, what happens when the average product of labour exceeds the subsistence income?

Accepted Answer

Population rises, causing the average product of labour to fall.

Question 3

Which formula correctly calculates the average product of labour?

Accepted Answer

$$	ext{average product of labour} = \frac{	ext{total output}}{	ext{total number of farmers}}$$

Question 4

Why is GDP per capita considered an incomplete measure of living standards?

Accepted Answer

It ignores the distribution of income and the depletion of natural resources.

Question 5

What is the main purpose of adjusting GDP per capita using purchasing power parity (PPP)?

Accepted Answer

To ensure that a unit of currency has the same purchasing power across countries.

Question 6

Which of the following is NOT a key institution of capitalism?

Accepted Answer

Centralized government ownership of all resources

Question 7

If a country’s GDP per capita increases but income inequality also rises significantly, what can be inferred about the change in living standards for the poorest citizens?

Accepted Answer

Living standards for the poorest citizens may not have improved, or could have worsened.

Question 8

Which of the following ratios is used to measure income inequality by comparing the income share of the richest 10% to the poorest 40%?

Accepted Answer

Palma ratio

Question 9

Refer to the Lorenz curve and Gini coefficient. If the Lorenz curve moves further away from the line of perfect equality, what happens to the Gini coefficient?

Accepted Answer

It increases, indicating more inequality.

Question 10

Which of the following best explains the sharp increase in atmospheric CO$$_2$$ and global CO$$_2$$ emissions after 1800, as shown in the graphs?

Accepted Answer

The onset of the Industrial Revolution and increased use of fossil fuels.

Question 11

What is the main economic consequence of ignoring the depletion of natural resources in GDP calculations?

Accepted Answer

GDP may overstate the actual improvement in living standards.

Question 12

In the context of the Malthusian model, what is meant by 'diminishing average product of labour'?

Accepted Answer

Each additional worker produces less output on average as more workers are added to a fixed amount of land.

Question 13

Which of the following is a direct consequence of climate change that can impact economic wellbeing?

Accepted Answer

Destruction of food-growing areas.

Question 14

A country has a total output of 504,000 kg of grain and 800 farmers. What is the average product of labour?

Accepted Answer

$$\frac{504,000}{800} = 630 kg $$per farmer

Question 15

Which of the following is NOT a way governments can address environmental problems?

Accepted Answer

Ignoring market failures and letting firms self-regulate.

Question 16

Which of the following best describes the relationship between the economy and the biosphere?

Accepted Answer

The economy is nested within society, which is nested within the biosphere.

Question 17

What is the main reason for the divergence in economic growth across countries, according to the study materials?

Accepted Answer

The adoption and functioning of capitalist institutions and political systems.

Question 18

If the S80/S20 ratio in a country increases, what does this indicate?

Accepted Answer

Income distribution is becoming more unequal.

Question 19

Which of the following is a characteristic of a firm in a capitalist economy?

Accepted Answer

It hires and manages labour to produce goods and services for profit.

Prosperity, Inequality, and Planetary Limits: Foundations of Microeconomics

스터디 가이드 - 연습 문제

학습 가이드 - 플래시카드