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

In a small European country,it is estimated that a $10,000 increase in capital per hour worked will increase real GDP per hour worked by $300.Based on this information,what is the slope of the per-worker production function in this range?

Firms free ride on the research and development of other firms when they

Why do some firms choose not to file for a patent and instead try to keep the results of their research a trade secret?

An increase in ________ shifts the production function ________,and makes it possible to produce a higher level of GDP with ________ capital per hour worked.

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 Joseph Schumpeter,the theory of creative destruction describes a process by which

Between 1960 and 2010,deaths among children have

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.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?

Table 11-3 -Refer to Table 11-3.Use the table above to calculate the annual growth rate in GDP.Also calculate the total percentage change in the growth from 2010 through 2013.Explain the difference between the average annual growth rate in real per capita GDP from 2010 through 2013 and the total percentage change in growth from 2010 and 2013.

High-income countries are also referred to as

Which of the following is not one of the three sources of technological change?

A small economy increased its capital per hour worked (K/L)from $40,000 to $50,000.As a result,real GDP per worker (Y/L)grew from $20,000 to $25,000.If the economy increases its capital per hour worked by another $10,000 to $60,000,but there is no change in technology,by how much more and in what direction will output per worker change?

Unemployment insurance is usually available to workers in ________ for a shorter period of time than it is in ________.

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

The Soviet Union's economy grew rapidly in terms of GDP per hour worked in the 1950s,but eventually this growth slowed.Why did this occur?

Political stability is not a prerequisite to economic growth.

According to new growth theory,

Suppose that in 2013,real GDP grew in Estonia by 3% and the population increased by 5%.Therefore,in 2013,Estonia experienced

You have been hired as an economic advisor for a developing country.You have been asked to focus on education as a means for the country's development.Explain to the prime minister how improving education and training can contribute to his country's economic growth,and why it is important for the government to take a pro-active role in promoting education.