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

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

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

Figure 22-3 -The per-worker production function has a ________ slope, indicating that increases in capital per hour worked ________ real GDP.

Globalization is positively associated with

According to Joseph Schumpeter, which of the factors of production is central to economic growth?

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

The question of whether economic growth is desirable is a positive question, easily settled by economic analysis.

In a small Asian country, it is estimated that changing the level of capital from $8 million to $12 million will increase real GDP from $5 million to $6 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?

Georg, a German citizen, just purchased 10 shares of stock in Microsoft, a U.S. company. This purchase is an example of

In a small Asian country, it is estimated that a $10,000 increase in capital per hour worked will increase real GDP per hour worked by $600. Based on this information, what is the slope of the per-worker production function in this range?

Increasing the growth rate of GDP per capita and sustaining this growth rate in an economy can

Given the fact that the productivity slowdown of the mid-1970s to the mid-1990s affected all industrial countries, which of the following explanations for the productivity slowdown in the United States is not likely to be correct?

Some researchers have been unable to find evidence of increasing returns to human capital.

When an economy faces diminishing returns,

The economic growth model predicts that

Figure 22-4 -Refer to Figure 22-4. Suppose the economy gains more capital per hour worked and experiences technological change. This is shown in the figure above by the movement from

All of the following are reasons why China is unlikely to maintain high enough rates of productivity growth to catch-up with the standard of living in the United States except

The economic growth model predicts that ________ across countries will converge over time.

What are some of the reasons used to explain improvements in health, education, democracy, and political stability in many low-income countries?

Not enforcing property rights in an economy will