Pick any two questions (each question should be half a page)

10. Globalization seems to have brought benefits for almosteveryone, though one exception is African farmers. Blocked fromglobal food markets by trade restrictions, Africans cannot takepart in the prosperity globalization has brought to the rest of theworld. Many of the health crises such as AIDS, malnutrition, andeven starvation are clearly linked to poverty. Moreover, many ofAfrica’s nations are politically unstable. If African farmers hadbetter access to global markets, what would the implications be forAfrican societies, nations, and economies?

11. Explain how our standard of living depends upon our level ofreal GDP per person but there might not be a one-to-onerelationship between the standard of living and real GDP perperson. Give examples of things that can effect one but not theother.

12. \"If country A has a higher level of real GDP per person thancountry B, then people in Country A must enjoy a higher standard ofliving than people in Country B.\" Is this statement true or falseand explain your answer.

13. Explain the relationship(s) between full employment,cyclical unemployment, the natural unemployment rate, and potentialGDP.

14. For the past decade, the unemployment rate in Western Europehas been higher than the unemployment rate in the United States.Based on this fact, is the natural unemployment rate larger inWestern Europe or in the United States? Why might the natural ratesdiffer between the two areas?

15. In the late 1970s, the inflation rate was over 10 percentper year. Many home mortgage lending institutions had mortgagesoutstanding that had been made in the 1960s at nominal interestrates of around 5 percent per year. Many of these lendinginstitutions failed; what can explain the high failure rate oflenders in the late 1970s?

16. CPI is not necessarily a reflection of how all consumersexperience inflation. How does your personal market basket compareto that of the average American household? Given that collegestudents may rely on more fixed incomes than most groups (financialaid), why do price trends pose more of a problem for thisgroup?

17. Policymakers (especially the Federal Reserve) tend to focusmore on core inflation when designing policies. Why core inflationis a useful measurement for the government or economists?

18. Classical growth theory is based on the work of ThomasMalthus, an economist from the early nineteenth century. Very fewmodern-day economists would refer to themselves as Malthusians. Thepersistence of this viewpoint represents what one can only refer toas the triumph of despair over experience. At some point inhistory, Malthusian theory might have been applicable. Butcertainly since the industrial revolution, parents have chosen tohave fewer children. And this shift only gets stronger as economicgrowth advances. Is the assumption correct that the populationgrowth rate is primarily determined by economic growth with apositive relationship?

19. Is there convergence or divergence in standards of livingamongst nations?

20. What is the role of economic growth for economicinequality?