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Macroeconomics

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Moderate

Long-Run Growth in GDP

MACRO-IJAAIF

Suppose you and your classmates are stranded on a deserted island.

Which of the following situations would NOT contribute to long-run growth in GDP on the island?

A

Several inhabitants decide to construct wooden fish traps that will make it much easier to catch fish.

B

Your classmate Al, who has a lot of experience in carpentry, takes time out of his normal duties of building huts, to educate others on various wood working techniques.

C

A large amount of rare seashells, an agreed upon form of money on the island, were recently discovered and distributed equally among all inhabitants.

D

After a recent storm, another boat becomes stranded and arrives on shore. These new arrivals agree to be cooperative and many have experience working in agriculture.