Exam 23: Economic Growth: Theory and Policy

Several countries in the world have failed to "converge" with industrialized countries. What does this mean about their economic growth rates? Explain why poorer countries have failed to "catch up," in terms of the pillars of economic growth. Are there any special problems facing these countries?

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

Mandated on-the-job training is seen in the United States mainly as a(n)

In the United States, the wage rates for high school graduates are growing faster than the wage rates for college graduates.

One of the factors causing the shrinking gap between rich and poor countries is

Human capital differs from physical capital in that

The financing of investment spending is often made possible by

More consumption rather than investment leads to stagnant growth in developing countries.

Nearly half of federal government research and development spending takes place in the

In contrast to the United States, countries like Japan and Germany have

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

Which of the following countries would have the most difficulty raising its level of average educational attainment?

The expansion of information technology and the increasing complexity of the economy should make the wage premium

The term "human capital" refers to how many people must work to produce a product.

The slowing of the American economy in 2008-2009 gave businesses a strong incentive to raise capital investment.

Unstable property rights will usually cause

A constant contributor to labor productivity growth during the entire 1948-2000 period was

Industrialized countries generally have higher levels of educational attainment compared with poorer countries.

As the amount of capital to laborers increases, labor productivity diminishes.

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