Question 1

Does a country have to be blessed with large quantities of natural resources in order to enjoy a high standard of living? Briefly explain.

Accepted Answer

No. Japan is an example of a country that has few natural resources, but international trade allows the Japanese to enjoy a high standard of living nevertheless.

Question 2

Explain the distinction between technological knowledge and human capital.

Accepted Answer

Technological knowledge refers to society’s understanding about how the world works. Human capital refers to the resources expended transmitting this understanding to the labor force.

Question 3

In the United States over the past century,real GDP per person has grown by about ---------- percent per year.

Accepted Answer

2 (or, more precisely, 1.77)

Question 4

What are inward-oriented policies? Do most economists recommend these types of policies to poor countries?

Accepted Answer

The answer of What are inward-oriented policies? Do most economists...

Question 5

How does the phenomenon of diminishing returns to capital explain the catch-up effect?

Accepted Answer

The answer of How does the phenomenon of diminishing returns...

Question 6

Some economists argue that it is possible to raise the standard of living by reducing population growth.As an economist interested in incentives rather than coercion,what kind of policy would you recommend to slow population growth?

Accepted Answer

The answer of Some economists argue that it is possible...

Question 7

In recent decades,economic growth has been much more rapid in South Korea than in the United States.What is the likely explanation for this fact?

Accepted Answer

The answer of In recent decades,economic growth has been much...

Question 8

Consider the nations of Brazil,Mexico,and Pakistan.Over the past century,which of these three nations has experienced,by far,slower economic growth than the other two nations?

Accepted Answer

The answer of Consider the nations of Brazil,Mexico,and Pakistan.Over the...

Question 9

Some data that at first might seem puzzling: The share of GDP devoted to investment was similar for the United States and South Korea from 1960-1991.However,during these same years South Korea had a 6 percent growth rate of average annual income per person,while the United States had only a 2 percent growth rate.If the saving rates were the same,why were the growth rates so different?

Accepted Answer

The answer of Some data that at first might seem...

Question 10

Research suggests that taller workers tend to earn more income than shorter workers.What does this suggest about the relationship between workers' height and their productivity?

Accepted Answer

The answer of Research suggests that taller workers tend to...

Question 11

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

Accepted Answer

The answer of In addition to investment in physical and...

Question 12

Compare and contrast the population theories of Malthus and Kremer.

Accepted Answer

The answer of Compare and contrast the population theories of...

Question 13

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

Accepted Answer

The answer of Studies have found that there is a...

Question 14

"When workers acquire tools,they become more productive." This statement reflects the general fact that ---------- is a determinant of productivity.

Accepted Answer

The answer of "When workers acquire tools,they become more productive."...

Question 15

Is coal a produced factor of production?

Accepted Answer

The answer of Is coal a produced factor of production?...

Question 16

Figure 25-1 
-Refer to Figure 25-1.Does the figure represent the idea that the amount of capital per worker influences the amount of output per worker,or does the figure represent the idea that the amount of output per worker influences the amount of capital per worker?

Accepted Answer

The answer of Figure 25-1 
-Refer to Figure 25-1.Does the...

Question 17

Why is productivity related to the standard of living? In your answer be sure to explain what productivity and the standard of living mean.Make a list of things that determine labor productivity.

Accepted Answer

The answer of Why is productivity related to the standard...

Question 18

Is physical capital a produced factor of production? Is human capital a produced factor of production?

Accepted Answer

The answer of Is physical capital a produced factor of...

Question 19

The catch-up effect says that countries with low income can grow faster than countries with higher income.However,in statistical studies that include many diverse countries we do not observe the catch-up-effect unless we control for other variables that affect productivity.Considering the determinants of productivity,list and explain some things that would tend to prohibit or limit a poor country's ability to catch up with the rich ones.

Accepted Answer

The answer of The catch-up effect says that countries with...

Question 20

John and Miguel are fishermen.When they go fishing,John consistently catches 2 or 3 fish per hour,while Miguel consistently catches 5 or 6 fish per hour.Miguel's ---------- exceeds that of John.

Accepted Answer

The answer of John and Miguel are fishermen.When they go...

Exam 12: Production and Growth: Part A