1 True/false questions Give a one sentence justification. 1. Adjusting for purchasing power parity tends to increase the measured income differences be- tween poor and rich countries. 2. According to the Malthusian model, an increase in productivity will lead to a larger population in the long run, but won't affect the level of income per capita in the long-run. 3. The decline in child mortality is the leading explanation for the decrease in fertility during the demographic transition. 4. Suppose that unobservable climate characteristics predict both the number of domesticable animal species and population density. Then the number of domesticable animals in a region doesn't satisfy condition 1 (relevance for being an instrumental variable for the number of years since the Neolithic transition.
1 True/false questions Give a one sentence justification. 1. Adjusting for purchasing power parity tends to increase the measured income differences be- tween poor and rich countries. 2. According to the Malthusian model, an increase in productivity will lead to a larger population in the long run, but won't affect the level of income per capita in the long-run. 3. The decline in child mortality is the leading explanation for the decrease in fertility during the demographic transition. 4. Suppose that unobservable climate characteristics predict both the number of domesticable animal species and population density. Then the number of domesticable animals in a region doesn't satisfy condition 1 (relevance for being an instrumental variable for the number of years since the Neolithic transition.
Chapter20: Economic Growth In The Global Economy
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