Exam 17: Production and Growth

Like physical capital, human capital is a produced factor of production.

What are the long-run effects on productivity and income of an increase in the saving rate?

If a country's saving rate increases, then in the long run

If a country increases its saving rate, which of the following permanently grow at a higher rate?

The long-run effects of an increase in the saving rate include

Which of the following correctly ranks the three countries, from highest to lowest, for percentage of high-school age children in school?

Which of the following is not correct?

If a country were to increase its saving rate, then in the long run it would also increase its

The traditional view of the production process is that capital is subject to

In recent decades, economic growth has been much more rapid in South Korea than in the United States. What is the likely explanation for this fact?

In the 19th century John Deere took out a patent on a newly designed plow that incorporated steel to make plowing faster. Many farmers bought plows from his company and he made millions. This example shows that patents turn an idea into a

The average income in a rich country, such as the United States or Japan, is more than

Consider the production function Y=2FL,K,H,N). Suppose F12,10,9,7)=100 and F24,20,18,14)=180. Does the production function have the property of constant returns to scale? Why or why not?

If over a short time there is an increase in the number of people retired and a decrease in the number of people working, then productivity

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

Indonesians, for example, have a lower standard of living than Americans because they have a lower level of productivity.

If an American-based firm opens and operates a factory in China, then it is engaging in

Suppose an economy experiences an increase in its saving rate. The higher saving rate leads to a higher growth rate of productivity

Real Foods produced 400,000 cans of diced tomatoes last year and 460,000 cans of diced tomatoes this year. It employed the same number of labor hours each year. Real Foods' productivity

An increase in the saving rate permanently increases the growth rate of real GDP per person.