Exam 16: Long-Run Growth

A company uses 50 workers and 20 units of capital to produce 400 units of output. If this company increases its capital to 30 units and, as a result, its output increases by 100 units, the productivity of labor ________ to ________ units per worker.

Refer to the information provided in Figure 16.2 below to answer the questions that follow. Figure 16.2 -Refer to Figure 16.2. An economy that chooses to be at Point ________ can achieve higher economic growth rate in the future.

U.S. labor productivity has increased over time.

Refer to the information provided in Table 16.2 below to answer the questions that follow. Table 16.2 -Refer to Table 16.2. During Period 1, output per capital is equal to

Labor productivity can increase even if the labor force increases.

Innovation can lead to increased productivity.

Much of the growth in ________ is due to export-manufacturing, and ________ have based their growth on resource extraction.

Clean air and clean water are considered normal goods by economists, so as countries get richer, they want to consume more of these goods.

One reason that labor productivity has increased is because of disembodied technical change.

Average productivity of labor is measured as the additional output produced by an additional worker.

The Millennium Development Goals adopted by the United Nations included targets for which of the following?

Refer to the information provided in Figure 16.1 below to answer the questions that follow. Figure 16.1 -Refer to Figure 16.1. A movement from Point B to Point D represents

One reason that labor productivity has increased is because of embodied technical change.

________ allows a society to consume more goods per person.

Refer to the information provided in Figure 16.2 below to answer the questions that follow. Figure 16.2 -Refer to Figure 16.2. An economy that chooses to be at Point B rather than Point A will achieve ________ in the future.

Higher energy prices in the 1970s reduced labor productivity because

Increased labor productivity shifts the production possibility curve away from the origin.

Technical change that results in an improvement in the quality of capital is known as disembodied technical change.

Refer to the information provided in Figure 16.2 below to answer the questions that follow. Figure 16.2 -Refer to Figure 16.2. Point ________ can not be produced by the people of this society.

Of the following regions, which had the lowest average growth rate per year from 1996-2013?