Exam 23: Economic Growth: Theory and Policy

The profitability of an investment project will increase if

The lessons of the Japanese recovery were most successfully repeated by

The distinction between productivity levels and productivity growth rates is theoretical and has no practical application.

The production function shifts upward as the capital stock increases.

Some politicians argue that reducing the corporate income tax will increase business investment spending.

The wage premium in the United States represents a

A major contributor to the slowdown in U.S.labor productivity during the 1973-1995 period was

Foreign direct investment generally leads to technological advancements in poorer countries.

Discuss that factors that help explain the rapid productivity growth in the United States after 1995.

To promote rapid economic growth, the new growth theory would argue for increased scholarships in

Which furniture production process would have the highest wage rates?

Service sector outputs could be expected to increase in price less than industrial sector outputs as an economy grows.

The cost of education, professional athletes' pay, and medical services rise faster than the rate of goods and services because their average productivity has remained the same.

On-the-job training is one area of education in the United States most influenced by the

The U.S.business sector has the most purview over

When actual GDP does not rise as fast as potential GDP, the economy most likely will experience

The profitability of an investment project will decrease if

The adoption of widespread use of computers contributed to the productivity speed-up from 1995 to 2000.

When the difference between potential GDP and actual GDP increases, the nation usually suffers from increased inflation.

Which of the following is an explanation for why some poor countries suffer from lower productivity growth?