Exam 9: Long-Run Economic Growth

Use the following to answer questions : Figure: Nations A and B -(Figure: Nations A and B) Look at the figure Nations A and B. Suppose that in 1960 each nation had $100 of physical capital for each worker and in 2010 each nation had $400 of physical capital per worker. Clearly in both 1960 and in 2010 nation A was producing more real output per capita with the same amount of physical capital per worker. What could explain the difference in these aggregate production functions?

All of the following are government policies to promote economic growth EXCEPT:

Use the following to answer questions : Figure: Technological Progress and Productivity Growth -(Figure: Technological Progress and Productivity Growth) Look at the figure Technological Progress and Productivity Growth. Which of the following changes in real GDP is most likely to have resulted from a gradual decline in property rights because of excessive government intervention?

Physical capital consists of man-made resources like machines and buildings.

Use the following to answer questions : Figure: Technological Progress and Productivity Growth -(Figure: Technological Progress and Productivity Growth) Look at the figure Technological Progress and Productivity Growth. Which of the following changes in real GDP is most likely to have resulted from an increase in foreign investment spending?

Written in 1972, the book that argued that long-run economic growth was not sustainable because of limited supplies of natural resources was called:

The role of the government can explain growth differences among countries. All of the following are government actions that contribute to differences in growth EXCEPT:

Use the following to answer questions : Scenario: Productivity The economy has grown by 4% per year over the past 30 years. During the same period the labor force has grown by 1% per year and the quantity of physical capital has grown by 5% per year. Each 1% increase in physical capital per worker is estimated to increase productivity by 0.4%. Assume that human capital has not changed during the past 30 years. -(Scenario: Productivity) Look at the scenario Productivity. What is the growth rate of productivity?

Which of the following institutions is important for channeling savings into investment?

Workers are more productive than in the past because they:

Convergence is most likely between:

All of the following are reasons for the economic stagnation of Latin America during the last century EXCEPT:

Economists believe that the best way to stimulate investment in physical capital is to encourage:

In the 1960s, Japan was the fastest-growing major economy and it also:

In the long run, an increase in saving will generally:

Use the following to answer questions : Scenario: Productivity The economy has grown by 4% per year over the past 30 years. During the same period the labor force has grown by 1% per year and the quantity of physical capital has grown by 5% per year. Each 1% increase in physical capital per worker is estimated to increase productivity by 0.4%. Assume that human capital has not changed during the past 30 years. -(Scenario: Productivity) Look at the scenario Productivity. How much has technological progress contributed as a percentage of productivity growth?

Between 1990 and 2005 the price of oil was high relative to prices in the 1970s and 1980s, and consumers responded by buying small, fuel-efficient cars.

Natural resources are:

The _____in an economy whose aggregate real output is growing faster than the total population.

To encourage an increase in economic growth rates, governments should increase regulation of the economy.