Exam 8: Why Do Economies Grow?

In making accurate comparisons of GDP across countries, it is important to take differences in ________ into account.

All of the following encourage increases in technological progress EXCEPT

If an economy grows at 6 percent per year, how many years would it take for real GDP to double?

If the growth rate for GDP was 5 percent and GDP in year 1 was 140, then GDP in year 2 would be

Why is it difficult to make accurate and valid comparisons of real GDP or GNP for different countries, and how do the World Bank and the IMF deal with these difficulties?

Which of the following creates difficulties in making comparisons of real GDP across nations?

Using the rule of 70, if the GDP per capita growth rate in the United States is 3.5 percent, real GDP per capita doubles every

Capital stock will increase as long as

In a simple economy (without government or foreign trade)where output can be purchased only by consumers or by firms, saving must equal

Explain the economic concept of convergence.

If the growth rate for GDP was 9 percent and GDP in year 1 was 100, then GDP in year 2 would be

The returns to education are

It is possible for an economy to become more productive and per-capita output to increase if

Will increased imports of supercomputers for industry promote economic growth?

-Refer to Figure 8A.2. Compared to curve S?Y, curve S?Y represents

Labor productivity is defined as

Recall the Application about the effect of global warming on economic growth to answer the following question(s). -According to this Application, the economic effects of increases in temperature seem to

Technological progress is one of the mechanisms by which economies can grow.

A larger labor force will allow the economy to produce more total output.

Recall the Application about the lack of property rights in Peru, and why clear property rights are important for economic growth in developing countries, to answer the following question(s). Clear property rights give owners an incentive to make long-term investments in their property, and are vital for the property owners to be able to borrow funds. -According to this Application, clear property rights are important for economic growth, because without a clear title to property,