Q1. An advance in technonlogy allows a frim to produce (Blank) output with (Blank) resoures

a. the same; more

b. more; the same

c. less; fewer

d. the same; the same

Q2. Country D has large reserves of rare minerals needed in high tech manufacturing. These mineral deposits are (Blank) for country D.

a. intellectual capital

b. technology

c. physical capital

d. a natural resoucre

e. a basis for sound institutions

Q3. Which of the following factors is positively correlated with economic growth?

a. lack of private properly rights

b. high barriers to international trade

c.political stability and the rule of law

d. high rates of inflation

Q4. consider the laonable funds market, investments is the

a. demand for loanable finds and is downward slopping

b. supply of loanable funds and is downward slopping

c. supply of loanable funds and is vertical

d. supply of loanbale funds and is upward slopping

Q5. you are thinking about building a new mall. Your trusted economic consultants say the mall will bring an 8 percent nominal rate of return. Because you know that you can borrow the necessary money at 7 percent.

a. you will build the mall only if you expect inflation to remain below 1 percent.

b. you will definitely build the mall.

c. you will build the mall, unless you expect inflation to rise above 15 percent.

d. you will build the mall, so long as you expect inflation to remain below 8 percent

e. you will build the mall, so long as you expect inflation to remain below 7 percent