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

List two ways the labor force experience is different between workers in Europe and in the United States. How do these differences influence productivity?

For how long does a patent give a firm the exclusive legal right to a product?

What is "brain drain"?

Which of the following describes the Soviet Union's economy through most of the second half of the 20th century?

Which of the following policies is designed specifically to directly promote technological change in an economy?

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 $5 million to $6 million. If the number of hours worked in the labor force does not change, what does this information tell you about the slope of the per-worker production function in this range?

How do government policies that enforce property rights affect economic growth?

Over the last three decades in the United States, services have become a smaller fraction of GDP relative to goods.

Figure 22-2 -Refer to Figure 22-2. Based on the per-worker production function above, if the economy raises capital per hour worked from $35,000 to $40,000, by how much will real GDP per hour worked increase?

The economic growth model predicts that

If real GDP per capita in the United States is $8,000 in 2018, and if real GDP per capita is $12,000 in 2028, what is the total percent change in the growth rate of GDP per capita between 2018 and 2028?

One of the primary reasons that Mexico has had trouble attracting foreign investment and has therefore experienced relatively low rates of economic growth is

A policy that offers parents a tax reduction based on how much they are saving for their children's college education should ________ the equilibrium level of loanable funds and ________ the rate of long-term growth.

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. If, after the outflow of students in North Africa, it now takes more capital per hour worked to get the same amount of GDP per hour worked, this indicates ________ the per-worker production function in the North African region.

Describe the pattern of growth rates in real GDP per hour worked in the United States since the early nineteenth century. Has output per hour worked consistently increased at the same rate? Explain.

The Industrial Revolution began in

If real GDP per capita in Ireland is estimated to be $7,400 in 2018, what will real GDP per capita be in 2023 if real GDP per capita grows at an annual rate of 2.8%?

Figure 22-5 -Refer to Figure 22-5. Based on the "catch-up line" drawn above, poorer countries are more likely to be at a point like ________, where growth in GDP is relatively ________, while richer countries are more likely to be at a point like ________, where growth in GDP is relatively ________.

Knowledge capital is nonrival in the sense that

Figure 22-4 -Refer to Figure 22-4. The movement from E to B to D in the figure above illustrates