Exam 7: Long-Run Economic Growth: Sources and Policies

One potential problem with the Chinese government's increases in spending on capital goods is that these increases have been achieved through

Figure 7.4 Alt text for Figure 7.4: In figure 7.4, a graph representing per-worker production functions. Long description for Figure 7.4: The x-axis is labelled, capital per hour worked, K/L.The y-axis is labelled, real GDP per hour worked, Y/L.3 concave curves originating from 0 at the vertex are shown.5 points A ($50000, $15000), B ($60000, $16000), C ($70000, $16400), D ($60000, $17000), and E ($60000, $15000)are plotted.The curve labelled, Production function 1, passes through point E.The curve labelled, Production function 2, passes through points A, B, and C.The curve labelled, Production function 3, passes through point D.These 5 points are connected to their respective coordinates on the x-axis and y-axis with dotted lines. -Refer to Figure 7.4.Within a country, the impact of wars and revolutions and their subsequent destruction of capital is reflected in the per-worker production function in the figure above by a movement from

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

Which of the following describes the former Soviet Union's economy through most of the second half of the 20th century?

Foreign portfolio investment occurs when an individual or firm buys stock or bonds issued in another country.

Increasing the growth rate of GDP per capita and sustaining this growth rate in an economy can

The key factors in raising standards of living in low-income countries have been increases in

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

In a small Asian country, it is estimated that a $10,000 increase in capital per hour worked will increase real GDP per hour worked by $600.Based on this information, what is the slope of the per-worker production function in this range?

Robert Lucas argues that there are ________ returns to human capital, and these productivity increases are not completely captured by individuals as they decide how much education to purchase.As a result, the market produces ________ education and training.

Productivity gains in Canada since 1990 have been ________ productivity gains in the United States.

Georg, a German citizen, just purchased 10 shares of stock in Suncor, a Canadian company.This purchase is an example of

Which of the following developments have the potential to significantly increase labour productivity and the standard of living?

One drawback of the patent system is that firms must disclose to the public information about the product or process.

During which of the following periods was growth in GDP per capita the fastest?

If the per-worker production function shifts down,

If GDP per capita rises by 2% between 2015 and 2016, which of the following is necessarily true?

The per-worker production function shows the relationship between ________ per hour worked and ________ per hour worked, holding ________ constant.

How does government support of health and education programs foster economic growth?

Your friend owns a snow cone stand that he works by himself.He produces about 25 snow cones per hour.He wants to be able to produce twice as many snow cones per hour, so he buys a second machine.He notices that he can only produce 10 more snow cones an hour.He jokes that he could have doubled his output with the second machine if he only had four hands.Using your knowledge of the production process, explain to your friend what you think has happened when he added more capital to his production process.