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

According to Joseph Schumpeter, economic growth is achieved through

The industrialized group of countries has growth rates that are consistent with the findings of the economic growth model.That is, Taiwan, Korea, and Singapore had ________ incomes in 1960 than Canada, the United States and Switzerland; and Taiwan, Korea, and Singapore grew ________ than Canada, the United States and Switzerland between 1960 and 2009.

Between 1960 and 2011, which of these leading industrial countries of the world had the highest average annual growth rate in GDP per capita?

The productivity slowdown experienced in Canada from the mid-1970s to the mid-1990s was actually a global phenomenon.

What is human capital?

What are some of the reasons used to explain improvements in health, education, democracy, and political stability in many low-income countries?

Which of the following government provisions would help increase the accumulation of knowledge capital?

In a small European country, it is estimated that changing the level of capital from $8 million to $10 million will increase real GDP from $2 million to $3 million.If the number of hours worked in the labour force does not change, what does this information tell you about the slope of the per-worker production function in this range?

In the long run, ________ differences in economic growth rates result in ________ differences in GDP per capita.

An explanation for the productivity slowdown from 1973 through 1995 is

Not enforcing property rights in an economy will

Between 1970 and now, the percentage of people able to read and write in sub-Saharan Africa has

Because of diminishing returns to capital, further increases in the quantity of capital in China would be represented as ________ the Chinese production function.

Suppose that in 2011 real GDP grew in Estonia by 3% and that the population increased by 5%.Therefore in 2011, Estonia experienced

The per-worker production function has a ________ slope, indicating that increases in capital per hour worked ________ real GDP.

The economic growth model predicts that

Which of the following is not a reason why China is unlikely to maintain high enough rates of productivity growth to catch-up with the standard of living in Canada?

Figure 7.3 Alt text for Figure 7.3: In figure 7.3, a graph, comparing capital per hour worked and real GDP per hour worked. Long description for Figure 7.3: The x-axis is labelled, capital per hour worked, K/L.The y-axis is labelled, real GDP per hour worked, Y/L.2 concave curves originating from 0 at the vertex are shown.5 points A ($50000, $15000), B ($60000, $16000), C ($70000, $16400), D ($80000, $16500), and E ($60000, $17000)are plotted.The curve labelled Production function 1, passes through points A, B, C, and D.The curve labelled Production function 2, passes through point E.These 5 points are connected to their respective coordinates on the x and y-axis with dotted lines. -Refer to Figure 7.3. A large group of new workers entering the labour force is shown in the figure above by a movement from

The purchase by an individual or firm of stock or bonds issued in another country is called

Explain how advances in technology are critical to sustaining economic growth, even if capital per hour worked is consistently increasing.Provide a graph of a per-worker production function to support your answer.