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Consider two economies: A and B. Economy A is located close to the equator and is characterized by an extreme climate. The terrain in economy A is inhospitable and it lacks rivers or other water bodies in its territory

On the other hand, economy B is located in the temperate zone with a pleasant climate, fertile soil, and navigable rivers. Suppose the geography hypothesis of economic growth holds. a) Which of the two economies is likely to be more prosperous? b) Is the difference in prosperity between the two economies likely to be sustained in the long run?

Suppose Chevrolet produced 90,000 Camaros in the United States in 2012 and during 2012 sold 69,000 to U.S. customers and exported 14,000 to foreign buyers. The remaining Camaros were sold to U.S. customers in 2012

How many of these Camaros would count as a part of U.S. GDP in 2012? A) 69,000 B) 76,000 C) 83,000 D) 90,000