Exam 8: Why Do Economies Grow

Recall Application 2, "Growth Need Not Cause Increased Inequality," to answer the following questions: -According to the application, Piketty and Saez found that _______ contribute to income inequality in countries that experience growth.

Zambia, a country in Africa, experienced an average GNP per capita growth rate of - 0.83 percent between 1960 and 2008. Based on this information, which of the following is true?

In an economy with no government or foreign sector, it is always true that:

If the population of Country A is 400 and the real GDP of Country A is $200,000 , then the GDP per capita in country A is:

The country of Needia has recently suffered a decline in its growth rate from 3 to 2 percent per year. How many more years will it now take for output to double in Needia?

-Refer to Table 8.1. Compute real GDP per capita for each of the three countries. Why is it important to examine real GDP per capita rather than real GDP?

Proponents of new growth theory believe that poor countries should invest more on:

The notion that innovation is promoted by the competitive desire to break production monopolies is known as:

Per capita GDP decreases when:

If the protection of intellectual property rights were to be reduced, say by shortening patent terms, it is likely that:

An increase in human capital:

In the Solow Model, an increase in the depreciation rate will result in:

According to the Solow Model, an increase in saving rate will always result in an increase in output.

Based on growth accounting, which of the following would cause an increase in output?

If the economy experiences an increase in the amount of capital stock per worker, then we say that the economy is experiencing:

Suppose that growth in output that can be attributed to growth in labor and capital is 3%. If output grows at a rate of 5%, it must be the case that:

In the Solow Model, the an increase in the saving rate will result in an increase in the

Can net investment be negative? Explain.

Suppose the capital stock is currently at 10,000. If gross investment is 500 and depreciation is 1000, then the capital stock at the end of the period is:

Which of the following would prevent a farmer from making improvements to land to make it more valuable?