1. Pritchett and Summers argue that income per capita is strongly and positively related to health status when viewed across the world. The following table presents data from the year 2000.
Plot a graph of GDP per capita against life expectancy for the countries shown. Does your plot con?rm the Pritchett and Summers ?nding?
2. Suppose a ?rm has the following production technology for goods 1 and 2:
(a) Does Good 1 indicate economies of scale? Why?
(b) Does Good 2 indicate economies of scale? Why?
(c) Do the two goods indicate economies of scope? Why?