Exam 6: Economic Growth

Workers who pursue an education directly increase their

What happens to the real wage rate and potential GDP if population increases?

Because of the choices people make in the pursuit of profit, new growth theory argues that

A productivity growth slowdown can be the result of

Suppose a graph shows labor productivity in the United States over time. Which of the following statements would correctly describe the graph?

The one- third rule states that, holding technology constant, for every 1 percent increase in

The graphs below depict the production function and labor market for an imaginary economy. The economy is, initially, at points x and X. Figure 1 Figure 2 -An advance in technology shifts the production function upward and shifts the labor

"Why India Cannot Sustain High Economic Growth", by Kunal KumarKundu In his article about India's prospects for growth, the author notes that "Per capita availability of foo is falling as population is growing faster than food grain production. Deplorable rural infrastructure to India wasting an amount of food grain India's agriculture is still so very highly monsoon Dependent. " HYPERLINK "http://www.rediff.com/" www.rediff.com 5/29/20 If the author is suggesting that India's growth prospects are explained by the classical growth theory also expect that

Which of the following policies improves prospects for more rapid economic growth?

The real wage rate can best be described as the

One reason for the productivity growth slowdown in the 1970s was

In Lotusland, real GDP per hour of labor grows at 6 percent a year and capital per hour of labor increases by 6 percent a year. The one- third rule tells us that technological change increased real GDP per hour of labor by .

In Lotusland, real GDP per hour of labor grows at 5 percent a year and technology increases real GDP per hour of labor by 5 percent a year. Capital per hour of labor grows by percent a year.

If the price level falls by 5 percent and workers' money wage rates remain constant, firms'

An increase in the working- age population results in a

Which of the following contributes to economic growth?

Cuba spends the highest percentage of GDP (18.7 percent) on education while the United States is t 38th highest spender with 5.7 percent of GDP. (data from United Nations Human Development Program If spending on education is important for economic growth, which of the following statements expla Cuba's economic growth rate is lower than the U.S. economic growth rate?

The one- third rule states that a one percent increase in per hour of labor with in technology results in a one- third of one percent increase in per hour of labor.

Which of the following describes the one- third rule?

If the price level rises by 3 percent and workers' money wage rates increase by 2 percent, then the