Exam 22: Long-Run Economic Growth: Sources and Policies

Technological change is the key to sustaining economic growth.

Starting at point B in the diagram below, identify which combinations of points illustrate technological change. Give a brief explanation to support your answer.

Foreign investment can give a low-income country

In 1973, the Club of Rome published a book titled The Limits to Growth, which predicted that economic growth would likely end in high-income countries because of

The developing countries have been catching up to the lower-income industrial countries in terms of economic growth.

If a country's real GDP is rising by 3% per year while its population is rising at 5% per year, which of the following is true?

China's economy has grown tremendously from 1979 to the present. The reason for this growth is

According to the World Bank, in 2006, China's GDP was approximately $2.7 trillion (or $2,700 billion). That same year, India's GDP was approximately $906.3 billion. With which of the following populations would China's standard of living have been considered higher than India's that year?

Figure 22-1 -Refer to Figure 22-1. Suppose the per-worker production function in the figure above represents the production function for the U.S. economy. If the United States decided to double its support of university research, this would cause a movement from

An explanation for the productivity slowdown from 1974 through 1995 is

Lack of investment in strong education and health care systems

Technological change allows the economy to produce more output with the same amount of capital and labor.

Some economists argue that the productivity slowdown of the mid-1970s to the mid-1990s was due to changes in oil prices that

The small group of East Asian countries that experienced high rates of growth in the 1980s and 1990s are referred to as

All of the following policies are ways for a country to promote long-run economic growth except

Table 22-3 -Refer to Table 22-3. 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.

Table 22-3 -In the United States, the annual growth rate of real GDP per hour worked between 1996 and 2012 averaged

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

Between 1990 and 2012, which of these leading industrial countries of the world had the highest average annual growth rate in GDP per capita?

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?