In order for a country to develop a high per capita GDP, it must have a rich endowment of natural resources, particularly energy and mineral resources

If we measure scarcity or abundance correctly, we should use the concept of "effective factor endowment." This means:

a. the actual factor endowment multiplied by the average productivity of workers compared with its share of world GDP . b. trying to find out how much labor and capital are really involved in producing goods competing with imports and exports. c. measuring more effectively a nation's actual factor endowment. d. the actual factor endowment of labor multiplied by the productivity of capital, because, effectively, the productivity of one depends on the quantity of the other.

According to Gordon, all of the following are important ingredients in the recent U.S. housing bubble EXCEPT

A) low interest rates. B) saving glut. C) financial innovation. D) trade deficit.