Exam 12: Production and Growth: Part A

What is a production function? Write an equation for a typical production function,and explain what each of the terms represents.

What is the difference between human capital and technology?

Consider the nations of China,Japan,and the United States.Over the past century,which of these nations has progressed,in an economic sense,more rapidly than the other two nations?

Consider the production function $Y=4 F(L, K, H, N)$ . Suppose $F(10,8,6,5)=100$ and $F(30,24,18,15)=300$ .Does the production function have the property of constant returns to scale? Why or why not?

"Market prices give no reason to believe that natural resources are a limit to economic growth." Explain this statement.

Figure 25-1 -Refer to Figure 25-1.In order for the figure to make sense,do we have to assume that capital is the only determinant of output? Briefly explain.

An important prerequisite for the price system to work is an economy-wide respect for _______ rights.

Use the data on U.S.real GDP below to compute real GDP per person for each year.Then use these numbers to compute the percentage increase in real GDP per person from 1993 to 2012.

What particularly important role do courts play in a market economy?

What is the relationship between education and human capital?

Figure 25-1 -Refer to Figure 25-1."When the amount of capital per worker increases by one unit,a poor country experiences a greater benefit than does a rich country." Does the figure illustrate this notion? Briefly explain.

Which well-known economist from the past asserted that "the power of population is infinitely greater than the power in the earth to produce subsistence for man?"

Consider the production function $Y=2 F(L, K, H, N)$ . Suppose $F(12,10,9,7)=100$ and $F(24,20,18,14)=180$ . Does the production function have the property of constant returns to scale? Why or why not?

In what sense is it likely that geography has an effect on a country's rate of economic growth?

The level of real GDP is a good measure of economic prosperity,and the growth of real GDP is a good measure of ----------.

Why do we refer to physical capital as a produced factor of production?

The people of Country X save 10 percent of their income,and the people of Country Y save 25 percent of their income.If these respective saving rates persist forever,will one country or the other enjoy a higher rate of income growth forever? Explain.

Consider the nations of India,Indonesia,and Japan.Over the past century,which of these three nations has experienced,by far,more rapid economic growth than the other two nations?

Consider the nations of Canada,the United Kingdom,and the United States.Since 1870,which of these nations has progressed,in an economic sense,more slowly than the other two nations?

How would an economist typically assess the extent of economic progress in a nation?