Exam 11: Long-Run Economic Growth: Sources and Policies

Globalization refers to

Firms free ride on the research and development of other firms when they

What is human capital?

In a small Asian country,it is estimated that changing the level of capital from $8 million to $12 million will increase real GDP from $5 million to $6 million.If the number of hours worked in the labor force does not change,what does this information tell you about the slope of the per-worker production function in this range?

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?

Which of the following advances contributed to the "new economy" of the mid-1990s?

From 1980 to 2014,the average annual growth rate for the Mexican economy has been 0.8 percent.Based on that growth rate and using the rule of 70,the number of years it will take real GDP per capita to double in Mexico is approximately

Figure 11-3 -Refer to Figure 11-3.Which of the following would cause an economy to move from a point like A in the figure above to a point like B?

Consider two countries,Alpha and Beta.In Alpha,real GDP per capita is $6,000.In Beta,real GDP per capita is $9,000.Based on the economic growth model,what would you predict about the growth rates in real GDP per capita across these two countries?

Describe the pattern of growth rates in real GDP per hour worked in the United States since the early nineteenth century.Has output per hour worked consistently increased at the same rate? Explain.

According to new growth theory,the accumulation of ________ capital is subject to diminishing returns at the ________ level,but not at the level of the economy as a whole.

Which of the following explains the ability of the U.S.economy to avoid diminishing marginal returns and experience accelerating growth in the early to mid-20th century?

Most of the countries of Africa are considered newly industrializing countries.

The growth rate of real GDP per capita in Mexico was negative in which of the following time periods?

Describe the process of "creative destruction" using a specific example.

Policies to promote growth by increasing saving and investment work through

Unemployment insurance is usually available to workers in ________ for a shorter period of time than it is in ________.

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

________ is considered a high income country,________ a developing country,and ________ a newly industrializing country.

Which of the following is an example of foreign direct investment?