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

Increased foreign direct investment in India has contributed to its recent economic growth.

Table 22-6 -Refer to Table 22-6. Consider the statistics in the table above in describing the developing countries. Are these consistent with the economic growth model? Briefly explain.

Figure 22-4 -Refer to Figure 22-4. Which of the following combinations of points illustrates changes in the Soviet Union's economy from 1950 to 1980?

By offering more generous unemployment insurance programs, European countries can expect

Table 22-3 -Growth in the United States from 1800 to 1900 can be characterized as

Figure 22-3 -Refer to Figure 22-3. Technological change is shown in the figure above by the movement from

Knowledge capital is ________ in production and ________. As a result, firms ________ free ride.

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

Disease, poor nutrition, and substandard health care in developing nations can reduce growth in an economy by

The opportunity cost of being unemployed tends to be the highest in which of the following countries?

For how long does a patent give a firm the exclusive legal right to a product?

Figure 22-1 -Refer to Figure 22-1. Technological change is illustrated in the per-worker production function in the figure above by a movement from

Technological improvements are more likely to occur if

High-income countries have ________ and ________ as compared to developing countries.

The Industrial Revolution began in

Suggest two policies the government could pursue to help increase the accumulation of knowledge.

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 $4 million to $6 million. What level of GDP would you expect the economy to be able to reach if spending on capital continued to rise to $16 million, assuming no technological change and no change in the hours of work?

Explain how advances in technology are critical to sustaining economic growth, even if capital per hour worked is consistently increasing. Provide a graph of a per-worker production function to support your answer.

Robert Lucas argues that there are ________ returns to human capital, and these productivity increases are not completely captured by individuals as they decide how much education to purchase. As a result, the market produces ________ education and training.

The per-worker production function shows the relationship between ________ per hour worked and ________ per hour worked, holding ________ constant.