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

The Industrial Revolution

The lower-income industrial countries are catching up to the higher-income industrial countries in terms of economic growth.

If real GDP in the United States is growing at an annual rate of 3.2% per capita and Bolivia's real GDP per capita is growing at a rate of 1.3%, which of the following would we expect in the long run? Assume real GDP per capita in the United States begins at a level above that of real GDP per capita in Bolivia.

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

Figure 22-4 -Refer to Figure 22-4. 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

As predicted by the economic growth model, countries that start with lower levels of GDP per capita always grow faster than countries that start with higher levels of GDP per capita.

Figure 22-4 -Refer to Figure 22-4. The movement from A to B to C illustrates

If the Commerce Department adjusts the growth rate of GDP downward for the first quarter of 2014, and the Bureau of Labor Statistics adjusts the number of hours worked upward for the first quarter of 2014, what will the Bureau of Labor Statistics do in terms of revising the figures on the growth rate of labor productivity for the first quarter of 2014?

What is "brain drain"?

Globalization is defined as the process of countries becoming ________ open to foreign trade and ________ open to foreign investment.

Which of the following would you expect to result in faster economic growth?

The rapid growth of the Chinese economy should

According to the World Bank, GDP per capita ________ in the least corrupt countries than in the most corrupt countries.

Your friend owns a snow cone stand that he works by himself. He produces about 25 snow cones per hour. He wants to be able to produce twice as many snow cones per hour so he buys a second machine. He notices that he can only produce 10 more snow cones an hour. He jokes that he could have doubled his output with the second machine if he only had four hands. Using your knowledge of the production process, explain to your friend what you think has happened when he added more capital to his production process.

Some economists argue that the productivity slowdown from mid-1970s to mid-1990s actually didn't happen, but just "appeared" to happen because

Robert Lucas, a Nobel laureate in economics, argues that there are ________ returns to human capital.

Policies to promote growth by increasing saving and investment work through

Which of the following is not a reason why low-income countries might experience low economic growth?

If real GDP per capita in the United States is $8,000 in 2013, and if real GDP per capita is $12,000 in 2023, what is the total percent change in the growth rate of GDP per capita between 2013 and 2023?

When additions of input to a fixed quantity of another input lead to progressively smaller increases in output, we say we are facing