An inflow of capital and a trade deficit are more dangerous when
a. the inflow of capital is channeled into private investment.
b. the inflow of capital is used to finance current consumption and/or channeled into unproductive projects.
c. the unemployment rate of the country is low, because this will mean the capital inflow will be inflationary.
d. the investment rate is already high and the unemployment rate low.
B
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In India last year, the growth rate of real GDP was 3.5 percent and the population grew from 1,000 million people to 1,100 million. Real GDP per person
A) increased by 13.5 percent. B) decreased by 6.5 percent. C) increased by 6.5 percent. D) decreased by 13.5 percent. E) increased by 3.5 percent.
When the marginal product of an input declines as the quantity of that input increases, the production function exhibits
a. increasing marginal product. b. diminishing marginal product. c. diminishing total product. d. Both b and c are correct.