Exam 25: 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. The curve becomes flatter as the amount of capital per worker increases because of

When a society decides to increase its quantity of physical capital, the society

Other things the same, if a country raises its saving rate, when is growth of real GDP per person higher?

Other things equal, the likelihood that a country will experience a relatively-high level of income is greater if the country

A country's standard of living depends on its ability to produce goods and services.

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

If per capita real income grows by 2 percent per year, then it will double in approximately 20 years.

All else equal, if there are diminishing returns and constant returns to scale, then what happens to productivity if capital and labor both increase but capital increases by more?

Which list contains, in this order, a country whose real GDP per person grew faster and one whose real GDP per person grew slower than real GDP per person in the U.S. over about the last 100 years?

Economists differ in their views of the role of the government in promoting economic growth. A controversial idea is that government should

"When workers have a relatively small quantity of capital to use in producing goods and services, giving them an additional unit of capital increases their productivity by a relatively large amount." This statement

The dictator of a country requires that companies planning to open or expand must pay a large fee to file an application one year prior to building new factories or expanding existing ones. Other things the same, in the long run this requirement would

A nation's standard of living is determined by

An economy's production function has the constant­returns­to­scale property. If the economy's labor force doubled and all other inputs stayed the same, then real GDP would

Country A experienced a growth rate of real GDP per person of 2.5 percent per year throughout the 1900's. In view of other countries' experiences during this time country A's growth was

All else equal, if there are diminishing returns, then what happens to productivity if both capital and labor increase?

Which of the following statements is correct?

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

Which of the following statements about inputs is correct?

A forest is an example of a nonrenewable resource.