Exam 23: Economic Growth: Theory and Policy

The act of discovering a new production process would be called

On a graph with time on the horizontal axis and real GDP per capita on the vertical axis, the income levels of poorer countries are

The ability to read, write, and run calculations are examples of human capital.

Higher rates of productivity growth are most closely associated with higher rates of

A productivity increase is illustrated by a shift in the production function

Research shows that increases in educational attainment leads to higher

The "cost disease of personal services" phenomenon helps explain why medical care has become so expensive.

In general, as the amount of labor input decreases, the amount of output

As the economy becomes more technologically sophisticated, the wage premium can be expected to

The poorest countries in Africa have some of the highest growth rates, thus proving the convergence hypothesis.

Identify the main reason to expect convergence in the long run.

Properly enforced property rights will usually cause

The new growth theory explains why foreign students choose to study in

The profit earned from selling an asset for more than you paid for it is called

The Internet was first developed in the

According to new growth theory, _______ is advocated as a critical component of economic growth.

How is human capital most commonly measured?

By enjoying more consumer goods today, the economy spurs growth in future consumer goods.

The change in the contribution of capital formation was the chief cause of the productivity slowdown in 1973-1995.

What is the "cost disease of personal services" phenomenon and why does it help explain why tuition rates keep going up so fast?