Exam 7: Production and Growth

Suppose that Poland undertakes policy to increase its saving rate. What will this policy most likely do?

According to economic historian Robert Fogel, what proportion of the British population in 1780 was so malnourished that they could not perform manual labour?

Which situation is an example of the "brain drain"?

What is the most appropriate measure of a nation's standard of living?

The dictator of Turan has recently begun to arbitrarily seize farms belonging to his political opponents, and he has given the farms to his friends. His friends don't know much about farming. The courts in Turan have ruled that the seizures are illegal, but the dictator has ignored the rulings. Other things equal, what would we expect to happen to the growth rate in Turan?

Other things the same, if a country increased its saving rate what would that country likely have in 40 years?

In 2018, real GDP in the Kingdom of Fife was $500 billion and the population was 2 million. In 2019, real GDP was $660 billion and the population was 2.2 million. What was the approximate growth rate of real GDP per person?

Which of the following would be considered physical capital?

Suppose an economy uses only two inputs in production: capital and labour. The following table describes a production function, where y stands for output per worker and k is capital per worker. a) Draw approximately this production function with y on the vertical axis. b) Show that this production function exhibits diminishing returns to scale. c) Suppose there are two countries, A and B. The economies of the two countries can be described by this production function. If Country A has initially a capital-labour ratio k = 0.167 and Country B has k = 0.412, show that an equal increase in capital produces more extra output in country A than in Country B.

What indicates greater scarcity of a natural resource?

What does diminishing returns to capital imply?

Clive Lloyd is a professor. Which of the following is a part of his human capital?

Compare and contrast the population theories of Malthus and Kremer.

Which country had the highest growth rate between 1900 and 2014?

If the number of workers in an economy doubled, all other inputs stayed the same, and there were constant returns to scale, what would happen to productivity?

What might the African governments do to foster higher economic growth?

Some economists argue that it is possible to raise the standard of living by reducing population growth. As an economist interested in incentives rather than coercion, what kind of policy would you recommend to slow population growth?

From 2001 to 2018, what was the growth in Canadian productivity?

What is the effect of a higher saving rate in the long run?

Investment in both human and physical capital has opportunity costs.