TEXT QUESTIONS-Part 1A

ECONOMICS 0115

01. In Chapter 1, Rich Nation Poor Nation:

a. Why are secure property rights important for

economic growth?

b. What other factors play a role in encouraging

economic growth?

c. What role did disease play in determining which

countries succeeded in becoming rich?

d. According to Acemoglu and Robinson why do some

nations fail to grow?

02. In Chapter 3, Poverty, Capitalism, and Growth:

a. Do the poor do worse in countries that are more

capitalist? Explain.

03. In Chapter 5, Is GDP What We Want?:

a. What are the four key elements in defining what GDP

measures?

04. In Chapter 6, Whats in a Word? Plenty when it is the

R Word:

a. How does the NBER use the three Ds to determine the

peak and trough of economic activity?

05. In Chapter 7, The Great Stagflation:

a. The authors argue that a number of factors have

contributed to a very slow recovery. Briefly explain
how each of the following slowed recovery:
(1) The Housing Market
(2) The Economic Safety Net
(3) The uncertainty of when higher taxes will
occur and who will pay them? (Why does the
increase in current increase in government
spending imply higher future taxes?)
(4) Regulation
06. In Chapter 8, The Case of the Disappearing Workers?

a. Be sure you can explain both sides of the

discouraged worker controversy.

b. What has happened to disability insurance and why

has that influenced the labor force participation
rate?

07. In Chapter 10, Inflation and the Debt Bomb:

a. What do the authors mean when they say The Debt

Must be Paid?

b. What is the inflation tax and what assets are

affected by it?

c. What is the temptation of inflation?