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

Figure 22-1 -Refer to Figure 22-1. Within a country, the impact of wars and revolutions and their subsequent destruction of capital is reflected in the per-worker production function in the figure above by a movement from

During which of the following periods was growth in GDP per capita the strongest?

How can economic growth help a country combat "brain drain"?

Some economists argue that the apparent slowdown in economic growth in the United States during the mid-1970s may not really have reduced the standard of living because

Figure 22-1 -Refer to Figure 22-1. Using the per-worker production function in the figure above, the largest changes in an economy's standard of living would be achieved by a movement from

A patent grants an inventor exclusive rights to a product for how long?

One reason why many low-income countries experience low rates of growth is because of poor public education and health.

Which factors explain labor productivity?

Article Summary Unlike in many nations, when the financial crisis hit in 2008 the Polish economy continued to grow, but due to a current slowdown in exports and domestic demand, Poland is expecting a large outflow of workers. Unemployment was expected to grow to 14 percent in Poland in 2013, and according to Krystyna Iglicka, a demographer at Lazarski University in Warsaw, "…Poles have always treated emigration as a way of improving their lot." Despite earning relatively low salaries in Western European countries, on average just over €2,000 (about $2,660) a month according to the National Bank of Poland, this is still four times more than workers would earn on average by staying in Poland. Iglicka predicts that between 500,000 and 800,000 Poles will emigrate from Poland over the next five years. Source: Jan Cienski, "Poland braces for fresh exodus of workers," Washington Post, January 22, 2013. -Refer to the Article Summary. If, after the outflow of workers in Poland, it now takes more capital per hour worked to get the same amount of GDP per hour worked, this indicates ________ the per-worker production function in Poland.

Knowledge capital is nonrival in the sense that

Which of the following is an example of foreign direct investment?

Developing countries with low saving rates and poor levels of health and education are likely to experience

Small differences in economic growth rates result in small differences in living standards.

If the slope of the per-worker production function is 1/2 in a given range, how will a $10,000 increase in capital per hour worked affect real GDP per hour worked in the same given range?

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

Significant economic growth did not begin in the world until

Figure 22-5 -Refer to Figure 22-5. 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 ________.

In the long run, a country will experience an increasing standard of living only if it experiences

Globalization refers to