1. Why is China still poor in per capita terms despite having the second-largest economy in the world in terms of real GDP?
2. What is the relationship between savings, capital formation, and consumption?
3. According to Malthus, how do economic growth and population relate to each other?
4. What are loanable funds? Discuss the factors affecting the (a) the demand for loanable funds, (b) the supply of loanable funds.
5. Explain how a consumption tax could lead to a decrease in real interest rates.  
6. List the various reasons that contributed to the financial crisis that occurred in 2008.

Answer rating: 100% (QA)

Despite being the secondlargest economy in the world in terms of real GDP China still has a relatively low per capita income due to several factors Large population China has the worlds largest popula... View the full answer