Exam 27: The Classical Long-Run Policy Model: Growth and Supply-Side Policies

Microsoft Word is the most widely used word-processing program. Which of the following explanations for its popularity uses the lock-in hypothesis?

The law of diminishing marginal productivity implies that opportunity cost:

Per capita growth:

If per capita output increases by 5 percent and output grows by 3 percent, the population must be:

Suppose Botswana doubles its income in 6 years while South Africa doubles its income in 9 years. According to the rule of 72, the growth rate in Botswana is:

Why is private property a source of growth?

Economists once viewed capital accumulation as the key element to economic growth.Why is this no longer the case?

Steven Landsburg has suggested that Scrooge, a character invented by Charles Dickens, was not really so bad. What could Landsburg be suggesting would happen in the market for loanable funds if all the misers of the world sold their assets and gave the money to the poor?

Country A has economic growth of 1.5% per year while country B has economic growth of 2.5% per year.How long will it take for income to double in each country?

Explain how free trade among nations is beneficial for economic growth.

New growth theory emphasizes the contribution of technology to growth more than Classical growth theory.

New growth theory emphasizes the importance of all of the following except:

Would returns to basic education (in terms of increased output)be greater in developed or developing countries? Explain.

Diminishing marginal productivity implies that a proportional increase in all inputs will produce a less than proportional increase in output.

What is economic growth and how does it relate to living standards?

Factory buildings are an example of:

Which economist stressed the importance of the entrepreneur in economic growth?

If the distribution of the gains from growth matters, growth in median income is:

List some examples of policies to create institutions that encourage technological innovation.

The U.S. economy experienced the Great Depression in the: