Exam 17: Economic Growth: Resources, technology, ideas, and Institutions

Exhibit 17-3 -Refer to Exhibit 17-3 Assume that the starting point on the production function is point A.After an increase in the technology coefficient,there would be a ______________________ which would shift the LRAS curve from LRAS₁ to _______________ resulting in _______________..

Per-capita real economic growth refers to an increase from one period to the next in

__________ rights refer to the range of laws,rules,and regulations that define rights for the use and transfer of resources.

Neoclassical growth theory emphasized how __________ contribute to growth.

Exhibit 17-2 -Refer to Exhibit 17-2.Assume that the starting point is always point 1.Which of the production function graphs shown, (a)or (b),represents an increase in the quantity of labor,and which represents an increase in the quantity of capital,respectively?

In the production function Real GDP = T (L,K),the T represents the _____________ coefficient,the L represents ________________ and the K represents _______________.

Country X experiences an increase in Real GDP and an increase in per-capita Real GDP.It follows that

Exhibit 17-3 -Refer to Exhibit 17-3 Assume that the starting point on the production function is point A.After an increase in the quantity of capital,there would be a ______________________ which would shift the LRAS curve from LRAS₁ to _______________ resulting in _______________..

If Real GDP is $6 billion and the population is 300,000,per-capita Real GDP is

If a country's economic growth rate is 4 percent a year,approximately how many years will it take to double its Real GDP?

In the production function Real GDP = T (L,K),the T represents the tax coefficient.

Real GDP in a small country is worth $8 billion.The population of the country is 200,000.What is per capita Real GDP?

An economy doubles in size every 35 years if it maintains a steady annual growth rate of about __________ percent.

Compare a property rights system in which people are allowed to keep one-third of the monetary rewards of their labor with a system in which they keep two-thirds.We should expect more entrepreneurship under the __________ system and faster real economic growth under the __________ system.

Exhibit 17-4 -Refer to Exhibit 17-4 Assume that the starting point in graphs (a)and (b)in Exhibit 17-4 is point 1.After a decrease in income taxes,there would be a ______________________ which would cause a movement along the production function from point 1 to point ______________.The result would be a shift of the LRAS curve from LRAS₁ to _______________ resulting in _______________..

When interest rates in a given economy are reduced,it causes firms to employ __________ capital goods.In terms of the production function (graphed with labor on the horizontal axis and Real GDP on the vertical axis),this then causes ____________________ .

When taxes on the return to capital in a given economy are reduced,it causes firms to employ __________ capital goods.In terms of the production function (graphed with labor on the horizontal axis and Real GDP on the vertical axis),this then causes ____________________ which makes the LRAS curve shift ____________ resulting in ______________________.

A production function specifies the relation between ____________ and the ___________ to ____________________.

Compare a property rights system in which people are allowed to keep one-third of the monetary rewards of their labor with a system in which they keep two-thirds.We should expect harder work under the __________ system and less risk taking under the __________ system.

According to new growth theory,technological advances can be promoted