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

Consider two countries,Alpha and Beta.In Alpha,real GDP per capita is $6,000.In Beta,real GDP per capita is $9,000.Based on the economic growth model,what would you predict about the growth rates in real GDP per capita across these two countries?

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

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 the United States and Switzerland,and Taiwan,Korea,and Singapore grew ________ than the United States and Switzerland between 1960 and 2010.

In 2012,South America had a lower average GDP per capita than any other continent.

How might have the educational system of the United States contributed to the productivity slowdown of the mid-1970s to the mid-1990s?

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

According to a study by economists Raymond Fisman and Edward Miguel,as the level of corruption in a country increases,

Which of the following policies are designed specifically to directly promote technological change in an economy?

You are an economic advisor to the president.You are asked to recommend a policy to promote long-term economic growth in the economy.Which of the following policies would you choose?

Foreign investment can give a low-income country

Significant economic growth did not begin in the world until

One reason why many low-income countries experience low rates of growth is because of low rates of saving and investment in those countries.

Developing countries with low saving rates and poor levels of health and education are likely to experience

Figure 11-4 -Refer to Figure 11-4.The movement from A to B to C illustrates

Suppose that an increase in capital per hour worked from $15,000 to $20,000 increases real GDP per hour worked by $500.If capital per hour worked increases further to $25,000,by how much would you expect real GDP per hour worked to increase if there are diminishing returns?

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

Which of the following policies would not help promote economic growth?

New growth theory states that increases in ________ capital will result in ________ at the ________ level.

Which of the following can explain why some countries have not experienced relatively high growth rates in real GDP per capita despite relatively low initial levels of real GDP per capita?