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

In a small European country,it is estimated that a $10,000 increase in capital per hour worked will increase real GDP per hour worked by $300.Based on this information,what is the slope of the per-worker production function in this range?

Suppose that an increase in capital per hour worked from $15,000 to $20,000 increases real GDP per hour worked by $500.If capital per hour worked increases further to $25,000,by how much would you expect real GDP per hour worked to increase if there are diminishing returns?

Figure 11-1 -Refer to Figure 11-1.Within a country,the impact of wars and revolutions and their subsequent destruction of capital is reflected in the per-worker production function in the figure above by a movement from

Political stability is not a prerequisite to economic growth.

From 1990-2014,productivity growth in the United States was ________ the growth rates of other high-income countries.

Figure 11-5 -Refer to Figure 11-5.Based on the "catch-up line" drawn above,poorer countries are more likely to be at a point like ________,where growth in GDP is relatively ________,while richer countries are more likely to be at a point like ________,where growth in GDP is relatively ________.

All of the following are reasons why China is unlikely to maintain high enough rates of productivity growth to catch-up with the standard of living in the United States except

Which of the following is a true statement regarding the economic growth model's predictions and how it actually affects the real world?

If real GDP per capita in the United States is $8,000 in 2016,and if real GDP per capita is $12,000 in 2026,what is the total percent change in the growth rate of GDP per capita between 2016 and 2026?

The rapid growth of China's economy relative to the United States has benefitted U.S.consumers because

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

Which of the following is not a reason why low-income countries might experience low economic growth?

Empirical evidence from 1960 to 2011 shows that convergence in economic growth is occurring in which of the following cases?

Figure 11-1 -Refer to Figure 11-1.Diminishing marginal returns is illustrated in the per-worker production function in the figure above by a movement from

By offering less generous unemployment insurance programs,the United States can expect

List two ways the labor force experience is different between workers in Europe and in the United States.How do these differences influence productivity?

Despite the improvements in information technology,productivity growth since 2006 has fallen to an even lower rate than during the period of slow growth from the mid-1970s to the mid-1990s.

Suggest two policies the government could pursue to help increase the accumulation of knowledge.

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

Lack of investment in strong education and health care systems