1. According to Malthus’s view, which of the following is a consequence of increased population?
a. increased GDP per person
b. more people imply more ideas and more labour force, which promotes growth
c. depletion of productive resources and lower standards of living
d. increase in productivity in the food sector, which is necessary to support the increase in population
2. Which of the following happens when a person buys shares in a mutual fund?
a. The person indirectly becomes owner or creditor to many companies.
b. The person lends to and borrows from the other shareholders in the mutual fund.
c. The person receives a fixed interest as long as he or she does not sell the shares.
d. The person lends money to the federal government.
3. Which of the two bonds in each example would you expect to pay the higher interest rate:
US National Railway Company bond or a bond issued by a new record company