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

Under the Soviet system of communism

According to new growth theory

Figure 11-4 -Refer to Figure 11-4.Using the per-worker production function in the figure above,the largest changes in an economy's standard of living would be achieved by a movement from

Which of the following reasons has been suggested for Mexico's slow economic growth?

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

If the per-worker production function shifts down,

Which of the following government policies would most likely result in an increase in economic growth?

In a small Asian country,it is estimated that changing the level of capital from $8 million to $12 million will increase real GDP from $5 million to $6 million.If the number of hours worked in the labor force does not change,what does this information tell you about the slope of the per-worker production function in this range?

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.

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.What level of GDP would you expect the economy to be able to reach if spending on capital continued to rise to $12 million,assuming no technological change and no change in the hours of work?

Figure 11-4 -Refer to Figure 11-4.The movement from E to B to D in the figure above illustrates

One reason that Mexico has experienced relatively low rates of economic growth is that

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

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

Creative destruction means that

Growth in real GDP per hour worked in the United States was slowest during what period of time?

Figure 11-5 -Refer to Figure 11-5.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 ________.

According to the World Bank,in 2016,China's GDP was approximately $11.2 trillion (or $11,200 billion).That same year,India's GDP was approximately $2.3 trillion (or $2,300 billion).With which of the following populations would India's standard of living have been considered higher than China's that year?

Article Summary Due to political,economic,demographic,and cultural reasons,North Africa is experiencing an exodus of some of its brightest students.Limited job opportunities for the young,as well as limited space and poor facilities at universities,have pushed academics abroad for a growing number of North African students.Although this brain drain is leaving the region with a shortage of young,trained professionals,some students have chosen to return home following their graduation,while others who remain abroad send money home to families.Researcher Samia Nour found that these financial remittances from abroad equal the total amount of foreign direct investment for the region.The governments of North Africa have begun to realize the unsustainability of this brain drain,and have enacted policy which requires students with scholarships to return home to work following graduation or else repay all costs of their education. Source: Johan Savstrom,"'Brain drain of North African scholars," Nordic Africa Institute,June 13,2017. -Refer to the Article Summary.In North Africa,many students are leaving the country to study abroad,but in some countries,less-educated citizens are the primary group to leave.Should an outflow of citizens leave a country with a smaller but more productive workforce and the capital per hour worked does not change,there would be ________ the per-worker production function in that country.

The purchase or building by a corporation of a facility in a foreign country is called