Question

Scenario: In a closed economy without a government, the consumption expenditure equals $5,000 and the investment expenditure equals $2,000.

Refer to the scenario above. If the population of the economy is 200, the per capita national income is ________.

Group of answer choices

$35

$17

$50

$10

A hypothesis states that religious teachings, family ties, and/or social norms are the causes of economic prosperity. According to this hypothesis, ________.

geography is a fundamental cause of prosperity

culture is a proximate cause of prosperity

institutions are a fundamental cause of prosperity

culture is a fundamental cause of prosperity

Differences in the stock of physical capital between nations are an example of a(n) ________.

proximate cause of prosperity

implicit cause of prosperity

explicit cause of prosperity

fundamental cause of prosperity

Differences in the stock of human capital between nations are an example of a(n) ________.

proximate cause of prosperity

fundamental cause of prosperity

explicit cause of prosperity

implicit cause of prosperity

Answer 1

C = $5000

I = $2000

Y = C + I = $5000 + $2000 = $7000

The population of the economy = 200

Hence, the per-capita national income is $7000/200 = $35

Hence, the correct answer is $35

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When the hypothesis states that religious teachings, family ties, and/or social norms are the causes of economic prosperity, it amounts to stating that culture is a fundamental cause of prosperity.

Hence, the correct answer is culture is a fundamental cause of prosperity

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It shall be noted that proximate causes of prosperity are physical capital, human capital, and technology because they link high level of prosperity to high level of factors but without the evidence of why.

Differences in the stock of physical capital between nations are an example of a(n) proximate cause of prosperity.

Hence, the correct answer is the proximate cause of prosperity

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It shall be noted that proximate causes of prosperity are physical capital, human capital, and technology because they link a high level of prosperity to a high level of factors but without the evidence of why.

Differences in the stock of human capital between nations are an example of a(n) proximate cause of prosperity

Hence, the correct answer is the proximate cause of prosperity