Exam 9: Long-Run Economic Growth

Real GDP per capita in the United States increased almost _____ times between 1900 and 2015.

In the long run, an increase in saving will generally:

From the standpoint of economic growth, banks are important to:

One factor contributing to a slow rate of economic growth in Latin America is that broad basic education has been underemphasized in most countries.

The purpose of a cap and trade system is to encourage trade between countries by limiting the amount of tariffs that can be imposed on traded goods.

Use the following to answer questions: -(Figure: Technological Progress and Productivity Growth) Use Figure: Technological Progress and Productivity Growth. If there is significant technological progress (all other factors remaining unchanged), it is BEST indicated by a move from:

South Korea has real GDP per capita of $25,000, while England has real GDP per capita of $50,000. If real GDP per capita in South Korea grows at 7% and England's real GDP per capita grows at 3.5%, how long will it take for real GDP per capita in the two nations to converge?

Suppose that real GDP per capita of the United States is $32,000 and its growth rate is 2% per year and that real GDP per capita of China is $4,000, and its annual growth rate is 7%. According to the rule of 70, how large will China's real GDP per capita be in 20 years?

In the 1960s, Japan was the fastest-growing major economy, and it also:

To encourage an increase in economic growth rates, governments should increase regulation of the economy.

The average level of education, measured by the number of years the average adult has spent in school, is higher in Argentina than it is in China.

Increases in human capital will promote economic growth.

Sustainable long-run economic growth can continue in the face of the limited supplies of natural resources and the impact of growth on the environment.

A factor that does NOT drive productivity growth is:

Sub-Saharan Africa is so poor mainly because:

Human capital is:

Diminishing returns to physical capital means that as more and more physical capital is combined with a fixed amount of human capital and a fixed technology, eventually:

Between 1990 and 2005, the price of oil was low relative to prices in the 1970s and 1980s, and consumers responded by buying large, fuel-inefficient vehicles.

Which change would contribute to a nation's rapid long-run economic growth?

Diminishing returns to physical capital means that, as more and more physical capital is added to fixed amounts of human capital with a fixed technology, eventually real GDP per worker declines.