Exam 9: Long-Run Economic Growth

A nation's real GDP per capita increased from $250 billion to $275 billion in one year. Calculate the nation's growth rate.

A cap and trade system limits, or caps, the total amount of a negative externality, and producers must buy licenses to generate that externality.

The purpose of a cap and trade system is to encourage trade between countries by limiting the amount of tariffs that can be imposed on traded goods.

Greenhouse gas emissions are an example of a negative externality.

In 1798 the British economist Thomas Malthus predicted that Nazi Germany would invade Poland.

According to the rule of 70, a 10% annual increase in real GDP would lead to a doubling of real GDP in seven years.

A key input for measuring economic growth is:

Factors contributing to differences in countries' growth rates include all of the following EXCEPT:

Infrastructure includes:

One factor contributing to a slow rate of economic growth in Latin America is that broad basic education has been underemphasized in most countries.

Between 1973 and the early 1990s consumers responded to:

In the popular press we see many pictures of affluent people in Indian cities. Yet the average person in India today is poorer than the average person in the United States was in:

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 the deterioration of the nation's infrastructure over time?

Use the following to answer questions : Scenario: Technological Progress and Productivity Growth in Techland In Techland, from 1980 to 2010, holding technology and human capital fixed, increasing physical capital per worker from $25,000 to $100,000 would have led to a doubling of real GDP per worker, from $40,000 to $80,000. However, not only did physical capital per worker increase from $25,000 to $100,000, but technological progress shifted the productivity curve upward so that real GDP per worker actually increased from $40,000 to $320,000. -(Scenario: Technological Progress and Productivity Growth in Techland) Look at the scenario Technological Progress and Productivity Growth in Techland. What was the growth rate of real GDP per capita in Techland?

Economic growth in sub-Saharan Africa has been dismal. Which of the following is NOT a reason for Africa's problem?

If a country has a population of 1,000, an area of 100 square miles, and a GDP of $5 million, then its GDP per capita is:

The rule of 70 is most useful in:

According to estimates of the aggregate production function, each 1% increase in physical capital, holding human capital and technology constant, raises labor productivity by 0.33%.

Use the following to answer questions: Figure: Productivity -(Figure: Productivity) Look at the figure Productivity. An increase in physical capital per worker with everything else remaining unchanged is shown on the diagram as a movement from:

The three main reasons that the average U.S. worker today produces far more than his or her counterpart a century ago are more physical capital, more human capital, and a great deal of technological progress.