Japan and Germany’s growth performance after WWII.

True / False / Uncertain;

1. The growth trajectories of rich countries exhibit greater similarity than the growth trajectories of poor countries.
2. By 2030, most extremely poor people in the world will live in fast-growing countries. This has generally not been the case in the post-WWII era.
3. The Solow model can explain Japan and Germany’s growth performance after WWII.
4. A researcher found that IT workers in India who won the H1B visa lottery and were allowed to work in the US earned 6 times more than lottery losers the following year. This is evidence against the O-ring theory.
5. James Feyrer found that rich and poor countries have similar aggregate marginal products of capital. The Solow model cannot explain this but capital misallocation across firms within a country can.
6. History has a limited impact on present-day economic development, so it is sufficient to focus on the present when designing economic policy.
7. The slave trade affected African economic development primarily through destroying physical capital (eg. infrastructure).
8. Households living under the World Bank’s poverty line of $1.90 per day are malnourished because they are too poor to afford enough calories.
9. There is no point giving a one-time cash transfer since it cannot have a persistent impact on poverty.
10. Policymakers should replace direct cash transfers with in-kind transfers (like subsidized food), since the poor do not use cash transfers well.
11. If parents misperceive the returns to education, they may overinvest in educating some of their children and underinvest in educating the others.
12. The custom of bride price (payments from the groom’s family to the bride’s family at the time of marriage) should reduce the gender gap in education while the custom of patrilocal exogamy (where women marry men outside their home village) should exacerbate the gender gap.
13. Public sector health workers in developing countries are so motivated by their jobs that they always show up at work raring to go.
14. Low demand for preventive health treatments (like immunization) largely reflect the poor’s preference to spend money on more pressing concerns than their health.
15. Health externalities can reduce demand for health treatment by making it challenging for ordinary people to learn about their value.