1. Which of the following indicators tends to fall as GDP per capita rises in cross-country comparisons?

a.Life Expectancy

b.Secondary education enrollment

c.The size of the informal economy

d.Share of the labor force that is wage and salaried workers

2. Which of the following is NOT a characteristic of rapidly growing economies?

a. strong institutions protecting property rights

b. high trade as proportion of GDP

c. high investment in health

d. located in tropical zones

3. If we do not adjust GDP per capita by PPP, then:

a. Poor countries look richer than they are

b. Rich countries look poorer than they are

c. Poor countries look poorer than they are

d. It does not matter for income comparisons

4. According to results from Randomized Control Trials done by Esther Duflo and others, which of the following is more successful to get children into school?

a.Spend on extra teachers

b. Provide scholarships

c. Money transfers to parents

d. Deworming children

5. One problem that is faced when trying to measure GDP in poor countries is

a. Most workers in poor countries receive a salary

b. Most workers in poor countries work outside of the farming sector

c. Most workers in poor countries work in illegal activities

d. Most workers in poor countries are self-employed

6. If nominal exchange rates (converted to US dollars) are used to compare average income (measured in local currency) across countries, we:

a. compare the amount of goods and services that citizens can buy across countries

b. compare the amount of dollars that citizens can buy across countries

c. compare the amount of exports and imports that citizens can buy across countries

d. can compare living standards across countries