Exam 22: Long-Run Economic Growth: Sources and Policies

The Industrial Revolution

Which of the following is not a reason why the Industrial Revolution occurred when and where it did?

One reason that Mexico has experienced relatively low rates of economic growth is that

Use production functions from the economic growth model to explain why the United States grew at a much faster rate than the Soviet Union in the latter half of the 20th century.

Table 22-7 -Refer to Table 22-7. Consider the statistics in the table above in describing the following industrialized and developing countries. Are these consistent with the economic growth model? Briefly explain.

What are some of the reasons used to explain improvements in health, education, democracy, and political stability in many low-income countries?

In 2016, GDP per capita was ________ in the United States than in China, and since 1980, the growth rate of real GDP per capita has been ________ in the United States than in China.

Enforcing property rights in an economy will

Table 22-1 -According to the World Bank, in 2016, China's GDP was approximately $11.2 trillion (or $11,200 billion). That same year, India's GDP was approximately $2.3 trillion (or $2,300 billion). With which of the following populations would India's standard of living have been considered higher than China's that year?

Which of the following accurately describes growth rates in the United States from 1900 to the present?

The productivity slowdown experienced in the United States from the mid-1970s to the mid-1990s occurred in all high-income countries.

Which of the following advances contributed to the productivity growth of the mid-1990s?

Consider two countries, Alpha and Beta. In Alpha, real GDP per capita is $6,000. In Beta, real GDP per capita is $9,000. Based on the economic growth model, what would you predict about the growth rates in real GDP per capita across these two countries?

Which of the following is an example of foreign direct investment?

The per-worker production function shows the relationship between ________ per hour worked and ________ per hour worked, holding ________ constant.

Lack of investment in strong education and health care systems

According to the text, there are three ways the government can help increase the accumulation of knowledge capital. What are they?

Foreign portfolio investment occurs when an individual or firm buys stock or bonds issued in another country.

One of the results of Paul Romer's new growth theory is that investment in research and development will be too low in an economy. Explain how he comes to this conclusion.

Figure 22-4 -Refer to Figure 22-4. Suppose the economy gains more capital per hour worked and experiences technological change. This is shown in the figure above by the movement from