Exam 11: Long-Run Economic Growth: Sources and Policies

Enforcing property rights in an economy will

How do government policies that enforce property rights affect economic growth?

Is knowledge capital subject to the law of diminishing returns? Explain.

Which of the following is true regarding the productivity slowdown in the United States during the mid-1970s?

The labor productivity slowdown in the United States in the 1970s was due to declining quality of education in the United States,because no other industrialized country experienced the same labor productivity slowdown at the same time.

According to Joseph Schumpeter,economic growth is achieved through

Figure 22-1 -Refer to Figure 22-1.Many countries in Africa strongly discouraged and prohibited foreign direct investment in the 1950s and 1960s.By doing so,these countries were essentially preventing a moment from

Disease,poor nutrition,and substandard health care in developing nations can reduce growth in an economy by

The question of whether economic growth is desirable is a positive question,easily settled by economic analysis.

Some economists argue that the apparent slowdown in economic growth in the United States during the mid-1970s may not really have reduced the standard of living because

Between 1960 and 2010,deaths among children have

Describe the pattern of growth rates in real GDP per hour worked in the United States since the early nineteenth century.Has output per hour worked consistently increased at the same rate? Explain.

Which of the following is not one of the three sources of technological change?

Would you expect to see higher or lower growth rates for countries that start out with a relatively low level of real GDP per capita? Explain using the concept of "catch-up" and support your answer with a graph.

Explain how market economies are generally better able to achieve technological progress than are centrally planned economies.

Countries that are more globalized tend to have

Significant economic growth did not begin in the world until

Figure 22-3 -Refer to Figure 22-3.Based on the "catch-up line" drawn above,poorer countries are more likely to be at a point like ________,where growth in GDP is relatively ________,while richer countries are more likely to be at a point like ________,where growth in GDP is relatively ________.

When an economy faces diminishing returns,

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