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

The U.S. economy has seen a faster increase in productivity since the mid-1990s as compared to the economies of many Western European countries. Which of the following explains this?

According to Nobel laureate Douglass North, one reason why the Industrial Revolution occurred in England before many other countries was because the king in England consistently maintained control over the court system and the government.

Because of diminishing returns, an economy can continue to increase real GDP per hour worked only if

Table 22-4 -Refer to Table 22-4. In the table above, which countries are consistent with the predictions of the economic growth model?

Empirical evidence from 1960 to 2010 shows that convergence in economic growth is occurring in which of the following cases?

The Soviet Union consistently increased the amount of capital available to its workers, but found that increases in capital resulted in progressively smaller and smaller increases in GDP per worker. This phenomenon is referred to as

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

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

Foreign direct investment occurs when a Chinese corporation

The easiest way for a country to obtain access to technology is through

Growth in real GDP per capita for the world economy was greatest during

Explain how market economies are generally better able to achieve technological progress than are centrally planned economies.

Corruption

If the per-worker production function shifts up,

The labor productivity slowdown in the United States in the 1970s was due to declining quality of education in the United States, because no other industrialized country experienced the same labor productivity slowdown at the same time.

Which of the following accurately describes growth rates in the United States from 1900 to the present?

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?

How do economic growth rates affect a nation's standard of living?

Creative destruction means that

The owner of a firm wants some advice on how to increase productivity. Suggest three ways the entrepreneur could increase labor productivity through improving technology.