Exam 7: Production and Growth

Read the article "What Makes a Nation Rich?" by Daron Acemoglu in your textbook, and write a one-page summary of the article (Times New Roman, size 12, double spaced). (You can find some guidelines on how to write a summary here: http://goo.gl/CncBb.)

Which statement best explains the importance of real GDP per person?

In approximately how many years will real GDP per person in Canada double, given its average growth rate during the past century?

Which statement best defines proprietary technology?

The average person in a rich country, such as Germany, has income about ten times that of an average person in a poor country, such as Indonesia.

Recently there have been violent protests against the World Bank and the World Trade Organization. The protesters argue that these institutions promote free trade and also encourage corporations in rich countries to invest in poor countries. The protesters contend that these practices make rich countries richer and poor countries poorer. How would economists feel about these protesters' views?

Which statement best describes the evolution of productivity growth in Canada?

Suppose that there are diminishing returns to capital. Suppose also that two countries are the same except one has less capital, and so less real GDP per person. Suppose that both increase their saving rate from 3 percent to 4 percent. What will happen in the long run?

Economists differ in their views of the role of the government in promoting economic growth. According to the text, at the very least, what should the government do?

Which statement best defines the catch-up effect?

What would an economist call the tractors, hay balers, and combine harvesters that are used on a farm?

Over the past century in Canada, by how much has real GDP per person grown?

Suppose a country were to increase its saving rate. In the long run, what would also increase?

In 2018, Freedonia had a population of 2700 and real GDP of about $1,080,000. In 2017, it had a population of 2500 and real GDP of about $1,000,000. What was the approximate growth rate of real GDP per person in Freedonia between 2017 and 2018?

Senator Noitall says that in order to help poor countries develop, Canada should (1) prevent Canadian corporations from investing in poor countries because they take profits that the poor countries should have; (2) not import goods from poor countries that use child labour; (3) work to promote political stability in poor countries; and (4) reduce poor countries' reliance on market forces in their economies. Which of these ideas is likely to help poor countries grow?

Based on historical data on the prices of natural resources, which statement best describes how natural resources limit economic growth?

What is a characteristic of inward-oriented policies?

In countries where women are discriminated against, policies that increase their career and educational opportunities are likely to increase the birth rate.

Which terms refers to the relationship between the quantity of output created and the quantity of inputs needed to create it?

The economic development minister of a country has a list of things she thinks may explain her country's low growth of real GDP per person relative to other countries. She asks you to pick the one you think most likely explains her country's low growth. What contributes to low growth?