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

The U.S. economy has seen a faster increase in productivity since the mid-1990s as compared to the economies of many Western European countries. Which of the following explains this?

Knowledge capital is ________ in production and ________. As a result, firms ________ free ride on other firms' research and development.

In a small Asian country, it is estimated that changing the level of capital from $8 million to $12 million will increase real GDP from $4 million to $6 million. What level of GDP would you expect the economy to be able to reach if spending on capital continued to rise to $16 million, assuming no technological change and no change in the hours of work?

Under the Soviet system of communism

In the United States, the annual growth rate of real GDP per hour worked between 2006 and 2016 averaged

According to new growth theory, the accumulation of ________ capital is subject to diminishing returns at the ________ level, but not at the level of the economy as a whole.

Human capital refers to the percentage of the working-age population in the labor force.

The developing countries have been catching up to the lower-income industrial countries in terms of real GDP per capita.

Your friend does not understand the benefits of globalization. Outline for your friend the positive economic aspects of globalization.

Which of the following policies would not help promote economic growth?

Disease, poor nutrition, and substandard health care in developing nations can reduce growth in an economy by

Not enforcing property rights in an economy will

Of the following countries, which had the highest level of GDP per capita in 2016?

If a country's real GDP is rising by 2% per year while its population is rising at 7% per year, which of the following is true?

If the slope of the per-worker production function is 1/2 in a given range, how will a $10,000 increase in capital per hour worked affect real GDP per hour worked in the same given range?

Because firms can free ride on the research and development of other firms

Describe the process of "creative destruction" using a specific example.

Because of diminishing returns, an economy can continue to increase real GDP per hour worked only if

To what do economists attribute the rapid growth of labor productivity in the United States relative to other countries?

Which factors explain labor productivity?