Deck 3: Limits to Growth in Latin America

Question 1

Which of the following is not part of a growth regression?

A) K
B) L
C) H
D) A
E) none of the above

Answer 1

E

Question 2

In accounting for economic growth, which factor is not measured directly?

A) K
B) L
C) H
D) A
E) none of the above

Answer 2

D

Question 3

Between 1960 and 2017, economic growth in Latin America was approximately _____ percent.

A) 1.2
B) 2.4
C) 3.9
D) 4.6
E) none of the above

Answer 3

B

Question 4

What factor is the most important in explaining low economic growth in Latin America?

A) K
B) L
C) H
D) A
E) TMM

Question 5

In terms of growth accounting, what is the largest problem for Latin America?

A) Capital
B) Labor
C) R&D
D) TFP

Question 6

Which of the following has been the largest problem in economic growth in Latin America in the post WW II era?

A) rapid labor force growth
B) too much FDI
C) a surplus of human capital
D) negative TFP growth
E) free trade

Question 7

Savings is about ____ of GDP in Latin America.

A) 7
B) 13
C) 20
D) 29
E) 37

Question 8

FDI is about _____ of GDP in Latin America.

A) 1
B) 3
C) 12
D) 15
E) 17

Question 9

Infrastructure investment in Latin America is about _____ percent of GDP.

A) 1
B) 2
C) 4.3
D) 6.2
E) none of the above

Question 10

Which of the following is true?

A) The differences in MRP across firms in Latin America is large.
B) If firm heterogeneity with respect to MRP was smaller, productivity would be higher.
C) MRP is not a factor in Latin American growth.
D) a and b
E) b and c

Question 11

The percentage of workers in the informal sector is _____ percent.

A) 21
B) 27
C) 33
D) 35
E) 55

Question 12

The most important factor adversely affected by the lack of structural reforms in Latin America is:

A) inflation
B) G and T
C) the growth of potential real GDP.
D) corruption
E) oil prices

Question 13

Labor market distortions in Latin America contribute to:

A) low economic growth.
B) informality.
C) low TFP
D) all of the above
E) none of the above

Question 14

_____ percent of the labor force of Latin America is unionized.

A) 14
B) 20
C) 24
D) 31
E) 42

Question 15

Which of the following is not a current labor market distortion in Latin America?

A) job security regulations
B) conditions of employment
C) the minimum wage
D) the mita system
E) unions

Question 16

Which country has the most serious problems with corruption?

A) Bolivia
B) Argentina
C) Brazil
D) Venezuela
E) Chiapas

Question 17

Which of the following is not a measure of institutional quality?

A) corruption
B) government effectiveness
C) inflation
D) doing business
E) competitiveness

Question 18

Which of the following is not a measure of institutional quality?

A) competitiveness
B) ease of doing business
C) government effectiveness
D) degree of corruption
E) the existence of unions

Question 19

Explain how a growth regression describes economic growth in Latin America.

Question 20

Explain why economic growth in Latin America is lower than in the rest of the world.

Question 21

How do savings rates in Latin America compare to the rest of the world? Why is this a problem?

Question 22

How does poor infrastructure affect economic growth in Latin America?

Question 23

What is MRP? How does it relate to economic growth in Latin America?

Question 24

Describe how a large informal sector slows down growth in Latin America.

Question 25

List and describe the factors that contribute to informality in Latin America.

Question 26

How do complex regulations and taxes slow down growth?

Question 27

Why are labor-market regulations so important in Latin America?

Question 28

Describe some of the measures of institutional quality that are relevant to Latin America.

Question 29

Describe the link between institutional quality and TFP.

Question 30

Describe the negative relationship between crime and TFP in Latin America.