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

Figure 22-1 -Refer to Figure 22-1. Many countries in Africa strongly discouraged and prohibited foreign direct investment in the 1950s and 1960s. By doing so, these countries were essentially preventing a moment from

Table 22-5 -Refer to Table 22-5. Consider the statistics in the table above in describing the industrialized countries. Are these consistent with the economic growth model? Briefly explain.

If the per-worker production function shifts up

In the long run, a country will experience an increasing standard of living only if it experiences

GDP in a country grew from $10 billion to $14 billion over the span of 5 years. The average annual growth rate of GDP was

Of all industrialized nations, real GDP per capita was the highest in Japan in 2016.

An increase in ________ shifts the production function ________, and makes it possible to produce a higher level of GDP with ________ capital per hour worked.

The opportunity cost of being unemployed tends to be the highest in which of the following countries?

Developing countries with low saving rates and poor levels of health and education are likely to experience

During which of the following periods was growth in GDP per capita the strongest?

If property rights are not enforced in a country, then

According to new growth theory

Article Summary Due to political, economic, demographic, and cultural reasons, North Africa is experiencing an exodus of some of its brightest students. Limited job opportunities for the young, as well as limited space and poor facilities at universities, have pushed academics abroad for a growing number of North African students. Although this brain drain is leaving the region with a shortage of young, trained professionals, some students have chosen to return home following their graduation, while others who remain abroad send money home to families. Researcher Samia Nour found that these financial remittances from abroad equal the total amount of foreign direct investment for the region. The governments of North Africa have begun to realize the unsustainability of this brain drain, and have enacted policy which requires students with scholarships to return home to work following graduation or else repay all costs of their education. -Refer to the Article Summary. In North Africa, many students are leaving the country to study abroad, but in some countries, less-educated citizens are the primary group to leave. Should an outflow of citizens leave a country with a smaller but more productive workforce and the capital per hour worked does not change, there would be ________ the per-worker production function in that country.

Which of the following accurately describes the impact of the rule of law on a country's economic growth rate?

Which of the following countries had the lowest GDP per capita in 2016?

Figure 22-1 -Refer to Figure 22-1. Diminishing marginal returns is illustrated in the per-worker production function in the figure above by a movement

According to Nobel laureate Douglass North, one reason why the Industrial Revolution occurred in England before many other countries was because the king in England consistently maintained control over the court system and the government.

Which of the following is a normative statement about economic growth?

The term "brain drain" refers to

Most economic growth in the world occurred between 1,000,000 B.C. and 1300 A.D.