Exam 6: Long-Run Economic Growth: Sources and Policies

You have been hired as an economic advisor for a developing country. You have been asked to focus on education as a means for the country's development. Explain to the prime minister how improving education and training can contribute to his/her country's economic growth and why it is important the government take a pro-active role in promoting education. _____________________________________________________________________________________________ _____________________________________________________________________________________________

The economic growth model focuses on the long-run increase in the productivity of capital.

Investment and technological changes led to strong economic growth and productivity growth in Australia for approximately 30 years after the end of World War II.

Maxwell, a German citizen, just purchased 100 shares of stock in Ford Motor Company, an American company. This purchase is an example of:

Which of the following is an example of foreign direct investment?

Refer to Figure 6.1 for the following questions. Figure 6.1 -Suppose the economy gains more capital per hour worked and experiences technological change. This is shown in Figure 6.1 by the movement from:

Which country listed below experienced an increase in real GDP per capital following the end of its civil wars?

Calculate the GDP per capita for each country in the following table. Which country has the highest standard of living? Why? _____________________________________________________________________________________________ _____________________________________________________________________________________________

Empirical evidence from 1960-2012 shows that convergence in economic growth is occurring in which of the following cases?

Which of the following policies is designed specifically to directly promote technological change in an economy?

Labour productivity can be explained by:

Starting at point E in the following diagram, identify which combinations of points illustrate technological change. Give a brief explanation to support your answer. _____________________________________________________________________________________________ _____________________________________________________________________________________________

Foreign investment can give a low income country:

An example of foreign portfolio investment is?

What is the 'economic growth model'? _____________________________________________________________________________________________ _____________________________________________________________________________________________

Because Australian labour markets are more controlled and regulated than those in many European countries, labour productivity has grown relatively faster in Australia.

Refer to Figure 6.1 for the following questions. Figure 6.1 -Which of the following combination of points illustrates changes in the Soviet Union's economy from 1950-1980, as illustrated in Figure 6.1?

List four types of government policies that can aid economic growth. _____________________________________________________________________________________________ _____________________________________________________________________________________________