Section 2: (7 points) Question 1 [ 2 pt] Norway has some of the highest prices for services in the world. It also has some of the highest labour participation of women in the world. Can either of these facts explain why Norway has one of the highest levels of GDP per capita in the world measures using the PPP method? Question 2 [ 5 points] Discuss the following statement. Make sure you discuss both parts of the final sentence. The fastest growing countries in the world always tend to be a small number of countries that are much poorer than countries like the United States, Germany or Japan. This proves development is possible. Why is it possible for some low income countries to grow so rapidly, yet so many do not? question 1 Norway has a highest price for service in the world The, but which means that the more services provided, the norwegian more - GDP increases because the total value prices aren't used when of services will increase.. Norway has some of the adding Last labour partipalon of women in the world,Section 1: Multi-choice questions Question 1 When a country reforms its institutional framework and starts to catch up with frontier countries , (a) it typically has faster growth rates but lower levels of GDP per capita than western countries . x(b) it typically has lower growth rates and lower levels of GDP per capita than western countries. & (c) its income levels typically converge to western country levels within twenty years. x(d) its productivity increases so fast that capital/labour ratios (capital per worker) decline (e) None of the above. Question 2 Mumbai's (the main city in India) per capita GDP doubled over the last 10 years. What has Mumbai's average annual growth rate been over this period? (a) 2 percent. (b) 5 percent. (c) 7 percent. (d) 10 percent. (e) 14 percent. Question 3 The fishing industry employs boats and people. It has diminishing returns to labour and diminishing returns to capital. If output doubles when a firm increases size from 20 boats and 120 people to 50 buses and 300 people, it a) has diminishing returns to scale. (b) has constant returns to scale. (c) has increasing returns to scale. (d) None of the above. ARES