chowder Wrote: ------------------------------------------------------- > i marked POTENTIAL GDP because the policy of no > immigration and restricting 2 kids is not > implemented yet but is being considered. Didn’t they say “if implemented”? So GDP for sure Also, potential GDP does not fit as you don’t know the state of technology or anything in future.
I was pretty sure the question said something about limiting the amount of immigrants into the country while encouraging residents to have more children. rjs157 Wrote: ------------------------------------------------------- > The government put restrictions on couples having > babies…something like this… > > I narrowed it down to either a drop in GDP or a > drop in GDP per labor hour… > > I choose drop in GDP b/c the drop in GDP per labor > hour has to do with the existing workforce??? > Total guess, but hopefully GDP was correct. Who > knows…
CLT2 Wrote: ------------------------------------------------------- > Real GDP goes up with population increases. > > Real Wages Decline. > > > Was that the question? I can’t remember 100%. real wages gets my vote on this, other people said GDP though
GDP Per labour hour= Economic Growth. A closed economy will have lower economic growth. I chose GDP per labout hour…
+1 or -1
was this the same question that asked about the neo growth theory?
perfect, another answer wrong… my eco section already looks like *- -
is this the question about which variable to drop in GDP? And you had to choose between: 1) No. of Births 2) Working population to total population 3) Dont remember. Then I reasoned this… GDP is domestic, so not every national of the country works in the country of birth, what GDP calculates. NNP or GNP counts total good/services produced by nationals. but GDP calculates total goods/ services produced in the country irrespective of the fact that those people are national or not. Then births number is a useless variable. A better measure is Working Population
Destine Wrote: ------------------------------------------------------- > is this the question about which variable to drop > in GDP? And you had to choose between: > > 1) No. of Births > 2) Working population to total population > 3) Dont remember. > > Then I reasoned this… GDP is domestic, so not > every national of the country works in the country > of birth, what GDP calculates. NNP or GNP counts > total good/services produced by nationals. but GDP > calculates total goods/ services produced in the > country irrespective of the fact that those people > are national or not. Then births number is a > useless variable. A better measure is Working > Population what the hell is this question? were you in asia, cause i def didnt have any questions on GDP/GNP
sachin123 Wrote: ------------------------------------------------------- > GDP Per labour hour= Economic Growth. > A closed economy will have lower economic growth. > > I chose GDP per labout hour… +1 or -1 Sorry but this isn’t correct. Growth in GDP = Economic Growth. GDP Per Labour hour = Productivity Growth. As I recall, this question was asking the impact of a cut in the supply of labour. As CLT2 has said, that results in lower GDP, higher real wages and higher productivity (diminishing returns in reverse).
Econ is one of my stronger areas…I did put GDP as answer. Then last 10 seconds, I asked if GDP is lower, then potential GDP/hr should also be lower, so the answer couldn’t be both A and C!!! Then I chose B: increase in real wages, which is not correct. I should have stayed with my earllier choice. Not worried about econ, though, I got many right.
It’s slightly counter-intuitive to think that productivity increases as the labour force contracts but that’s what economics theory says. As the labour force increases, the marginal amount each unit contributes declines. In reverse, as the labour force decreases the opposite occurs. It was a tricky question though and one that very few people would have been expecting.
It’s just an arithmetic problem really. You have one pie. If you divide it among 4 persons, each person will get a larger portion than if you divided it among 8 people. The fewer kids you have, the more money each one will get from you.
The answer was potential GDP. You can look it up in the curriculum in the first econ chapter.
WRONG – that wasn’t even in the curriculum. Just a distractor.
Check out page 452 on the third or fourth paragraph from the bottom (Chapter 14).
Still wrong. Read the footnotes (appendix K). Cased closed.
LMFAO. My bad.
I can’t remember if I did a GDP or potential GDP on this. Did we decide the answer?
Where is this Appendix K (which page of CFAI Vol. 1), I can’t find it
I think it was a joke…