ECO 111 Exam 2 Part 1 questions n
answers graded A+ 2025/2026
IN nations that have large underground, or illegal, sectors - correct answer ✔✔GDP will
underestimate total production in the economy.
In general, increases in a country's wealth will cause infant survival rates to: - correct answer
✔✔Increase
When economists speak of "long-run economic growth" they mean increasing the - correct
answer ✔✔Per capita real GDP of a country.
Physical capita is: - correct answer ✔✔The stock of tools, including machines, structures, and
equipment, used to produce output.
Why does South Korea have a higher level of real GDP per capita than North Korea? - correct
answer ✔✔South Korea has a better system of incentives than North Korea
Agricultural productivity in China sharply declined during its experiment with communal
farming. This was primarily a result of - correct answer ✔✔Lack of property rights from farm
land.
In the Solow model, if a country's investment rate (y) increased from 10% to 12% and it was
operating at the steady state before the change, we would expect to see: - correct answer
✔✔An increase in both the capital stock and output.
In the Solow Model, an increase in the capital stock with all other variables held constant will
_____ the country's real GDP but at a(n) ____ rate. - correct answer ✔✔increase; decreasing
answers graded A+ 2025/2026
IN nations that have large underground, or illegal, sectors - correct answer ✔✔GDP will
underestimate total production in the economy.
In general, increases in a country's wealth will cause infant survival rates to: - correct answer
✔✔Increase
When economists speak of "long-run economic growth" they mean increasing the - correct
answer ✔✔Per capita real GDP of a country.
Physical capita is: - correct answer ✔✔The stock of tools, including machines, structures, and
equipment, used to produce output.
Why does South Korea have a higher level of real GDP per capita than North Korea? - correct
answer ✔✔South Korea has a better system of incentives than North Korea
Agricultural productivity in China sharply declined during its experiment with communal
farming. This was primarily a result of - correct answer ✔✔Lack of property rights from farm
land.
In the Solow model, if a country's investment rate (y) increased from 10% to 12% and it was
operating at the steady state before the change, we would expect to see: - correct answer
✔✔An increase in both the capital stock and output.
In the Solow Model, an increase in the capital stock with all other variables held constant will
_____ the country's real GDP but at a(n) ____ rate. - correct answer ✔✔increase; decreasing
