Exam 12: Production and Growth

Figure 25-1. On the horizontal axis, K/L represents capital K) per worker L). On the vertical axis, Y/L represents output Y) per worker L). -Refer to Figure 25-1. Choose a point anywhere on the curve and call it point A. If the economy is at point A in 2011, then it will definitely remain at point A in 2012 if, between 2011 and 2012,

Other things the same, which of the following would increase productivity?

An increase in a country's saving rate permanently raises its productivity.

If an economy with constant returns to scale were to double its physical capital stock, its available natural resources, and its human capital, but leave the size of the labor force the same,

If a good has become more scarce, then we know for sure that

Over the period 1870-2010, the United States experienced an average annual growth rate of real GDP per person of about 4 percent per year.

Inventors often obtain patents on new products and processes, thereby turning new ideas into

Which of the following statements is correct?

All else equal, which of the following would tend to cause real GDP per person to rise?

In countries where women are discriminated against, policies that increase the likelihood of career success and educational opportunities for women are likely to decrease the birth rate.

Over extended periods of time, population growth

Which of the following is correct?

According to the traditional view of the production function, which of the following values of the additions to output per worker would be consistent with moving from 5 to 6, and then from 6 to 7, and then from 7 to 8 units of capital per worker in that order?

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

Studies have found that there is a relationship between height and productivity. Briefly explain.

Last year the imaginary country of Basova had a population of 10,000, 6,000 people worked 8 hours a day, and produced a real GDP of $30,000,000. The imaginary country of Andovia had a population of 12,000, 8,000 people worked 8 hours a day, and produced a real GDP of $38,000,000. Which of the following is correct?

Figure 25-1. On the horizontal axis, K/L represents capital K) per worker L). On the vertical axis, Y/L represents output Y) per worker L). -Refer to Figure 25-1. The shape of the curve is consistent with which of the following statements about the economy to which the curve applies?

Over the last century, U.S. real GDP per person grew at a rate of about

In addition to investment in physical and human capital, what other public policies might a country adopt to increase productivity?

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.