Article Review 4

Due for submission April 4th

Please read the articles below and answer the questions that follow. For multiple-choice questions, circle/highlight the correct choice. For written response questions, please type your answers. 

Total possible points: 20

Why Are Some Countries rich and others poor?

Ireland’s Economic Miracle

Organization for Economic Co-operation and Development (OECD) data for Ireland

Sri Lanka is on the brink of bankruptcy after the worst financial crisis in history

1. Why is GDP per capita used as an estimate of the average standard of living in a country? (answer in 2-3 lines)2 points

2. The “institutional theory” suggests that by establishing property rights, free and open markets, and the rule of law, a country will create the incentives necessary for markets to develop and the economy to grow without much other government intervention. Describe how evidence from South Korea and China suggests that, in some cases, government must play a larger role.

(answer in 2-3 bullet points) 2 points

3. Why is economic growth key for countries who want to escape poverty? (answer in 2-3 lines)

2 points

4. How do institutions increase total factor productivity (TFP) and create incentives for economic growth?2 points

5. What is Celtic tiger? (answer in 2-3 lines) 2 points

6. Name the Four Asian Tigers: 2 points

7. Ireland’s ability to attract foreign direct investment can also be attributed to increase in investment and focus on ______________. 1 point

a. land

b. Labor

c. Human capital

d. Physical capital

8. In the data provided by OECD, the country with the highest GDP per capita in 2021. 1 point

a. Ireland

b. United States

c. Luxemburg

d. Norway

9. How many countries are members of OECD?1 point

a. 40

b. 48

c. 38

d. 58

10. Which is the richest country in the World (2021)? 1 point

a. Ireland

b. Luxemburg

c. United States

d. Qatar

11. Name two factors contributing for the growing economy of the richest country in question 8.

2 points

12. List two main reasons for the economic crisis in Sri Lanka.2 points