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

A small economy increased its capital per hour worked (K/L)from $40,000 to $50,000.As a result,real GDP per worker (Y/L)grew from $20,000 to $25,000.If the economy increases its capital per hour worked by another $10,000 to $60,000,but there is no change in technology,by how much more and in what direction will output per worker change?

The key factors in raising standards of living in low-income countries have been increases in

Use production functions from the economic growth model to explain why the United States grew at a much faster rate than the Soviet Union in the latter half of the 20th century.

Figure 22-4 -Refer to Figure 22-4.Suppose the per-worker production function in the figure above represents the production function for the U.S.economy.If the United States decided to cut its support of university research in half,this would cause a movement from

Foreign portfolio investment occurs when an individual or firm buys stock or bonds issued in another country.

Your friend does not understand the benefits of globalization.Outline for your friend the positive economic aspects of globalization.

The per-worker production function shows the relationship between ________ per hour worked and ________ per hour worked,holding ________ constant.

The rate of growth of productivity in the United States was positive during the 20th century.

One of the results of Paul Romer's new growth theory is that investment in research and development will be too low in an economy.Explain how he comes to this conclusion.

Is knowledge capital subject to the law of diminishing returns? Explain.

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

Not enforcing property rights in an economy will

Paul Romer,an economist at Stanford University,is most closely associated with what economic theory?

Which of the following government provisions would help increase the accumulation of knowledge capital?

If the per-worker production function shifts up

Growth in the United States from 1800 to 1900 can be characterized as

GDP in a country grew from $10 billion to $14 billion over the span of 5 years.The percentage change in GDP was

Which of the following countries had the lowest GDP per capita in 2014?

In 2014,GDP per capita was ________ in the United States than in China,and since 1980,the growth rate of real GDP per capita has been ________ in the United States than in China.

Article Summary Due in part to a lackluster economy,Mexico is experiencing an exodus of some of its brightest and most educated citizens.More than 20 percent of Mexicans with bachelor's degrees are living in the United States,28 percent working on higher education degrees are doing so in the United States,and 27 percent of Mexicans with doctorates are working in the United States.The three main reasons given for this exodus are money,politics,and safety.Pay gaps are wide between university positions in the two countries,scholarship money is scarce in Mexico and is subject to political bureaucracy and nepotism,and a 2014 study from Mexico's National Autonomous University reported that 76 percent of high-skilled workers stated that violence was a reason for their departure from the country. -Refer to the Article Summary.If,after the outflow of educated workers in Mexico,it now takes more capital per hour worked to get the same amount of GDP per hour worked,this indicates ________ the per-worker production function in Mexico.