Exam 7: Production and Growth

Which of the following goods does a patent turn a new idea into?

According to an economist, what kind of goods are national defence and knowledge?

What is the source of most technological progress?

A management professor discovers a way for corporate management to operate more efficiently. He publishes his findings in a journal. How are his findings best defined?

Your company discovers a better way to produce lawn mowers, but your better methods are not apparent from the lawn mowers themselves. What kind of knowledge is this?

Other things equal, how do relatively poor countries tend to grow?

How can a government encourage growth and, in the long run, raise the country's economic standard of living?

Which of the following is considered human capital?

In a market economy, when do we know that a resource has become scarcer?

In Canada real GDP per person is over $55,000, while in poor countries real GDP per person may be around $5000.

Tom works 6 hours a day and Jerry works 8 hours. Tom can produce 6 baskets of goods while Jerry can produce 7 baskets. What can we conclude?

Which of the following does Y/L refer to?

Some civil society groups and activists propose a zero-economic-growth policy in order to preserve the environment. Write an essay to discuss the pros and cons of this proposal. You may wish to refer, among other ideas, to the following: ∙ Economic growth needs to compensate for the increase in population. ∙ If population becomes older, the number of active persons decreases; therefore, productivity must increase to sustain a high standard of living. ∙ An increase in standard of living is only possible if an economy becomes more productive. (Income per person is closely related to labour productivity.) ∙ It is hoped that economic growth will eventually eradicate poverty. ∙ Economic measures of well-being, such as GDP per capita, are imperfect mainly because they disregard external costs of economic activity, as well as other aspects of life that people value, such as leisure, fairness, and income equality.

If a country's saving rate increases, what happens in the long run?

All else equal, which of the following would tend to cause GDP per person to rise?

What do property rights refer to?

Technological innovations, by increasing productivity in manufacturing, have brought about some expected, as well as some unexpected, changes. A notable change is the disappearance of some occupations; another is, paradoxically, that people now do more unskilled work for themselves than they used to do a decade ago. a) Name a few occupations that have disappeared, or may disappear in the near future, as they are being replaced by machines. b) Name a few occupations that have disappeared or may disappear as a side effect of the general increase in productivity. c) How would economic growth force many people to do more housework by themselves?

Which statement is consistent with the catch-up effect?

Which statement illustrates an implication of investment from abroad?

When a country removes trade barriers and exports milk and imports automobiles, what will most likely happen?