Long Run Economic Growth

Front 1

significant economic growth did not begin until

Back 1

the industrial revolution

Front 2

the best measure of a country's standard of living is

Back 2

real GDP per capita

Front 3

if a country's real GDP is rising by 3% per year while it's population is rising at 5% per year, what happens to the standard of living

Back 3

it goes down

Front 4

in the long run, _________ differences in economic growth rates result in ___________ differences in GDP per capita

Back 4

small, large

Front 5

GDP in a country gew from 10 billion to 14 billion over the span of 5 years. the percentage change in GDP was

Back 5

40%

Front 6

GDPin a country grew from $10 billion to $14billion over the span of 5 years. The average annual growth rate of GDP was

Back 6

7%

CAGR=([end value/begin value]^{1/#years})-1

Front 7

IfGDP per capita rises by 2% between 2013 and 2014, which of the following isnecessarily true?

A) Real GDP has risen by more than2%.

B) The population has decreased.

C) The population has increased, but by less than 2%.

D) None of the above is necessarily true.

Back 7

D

Front 8

Thekey factors in raising standards of living in low-income countries have beenincreases in

Back 8

technology & knowledge

Front 9

Aneconomic growth model explainsD954A}

Back 9

changes in real GDP per capita in the long run

Front 10

Whichof the following is NOT one of the three sources of technological change?

A) additional amounts of existingcapital

B) better machinery and equipment

C) increases in human capital

D) better means of organizing and managing production

Back 10

A

Front 11

Whenan economy faces diminishing returns,the slope of the per-worker productionfunction becomes ______ascapital per hour worked increases

Back 11

flatter

Front 12

Whenadditions of input to a fixed quantity of another input lead to progressivelysmaller increases in output, we say we are facing

Back 12

diminishing returns

Front 13

Inthe early 1900s, Henry Ford revolutionized the automotive manufacturingindustry by instituting the assembly line. What impact did the assembly line method for producing automobiles haveon the per-worker production function for Ford?

Back 13

it shifted up

Front 14

Firmsfree ride on the research and development of other firms when they

Back 14

useknowledge other firms havedeveloped withoutpaying for that knowledge..

Front 15

Whichof the following government provisions would help increase the accumulation ofknowledge capital?

A) patents

B) copyrights

C) education subsidies

D) All of the above are correct.

Back 15

D

Front 16

Apatent grants an inventor exclusive rights to a product for how long?

Back 16

20 years

Front 17

Whydo some firms choose not to file for a patent and instead try tokeep the results of their research a trade secret?

Back 17

Because firms must disclose informationabout processinthe application

Front 18

Whichfactors explain labor productivity?

Back 18

technologicalchange

quantityof capital perhour worked

Front 19

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

Back 19

capital;realGDP; technology<.

Front 20

Whatis human capital?

A) labor productivity

B) buildings, equipment, and machinery owned by individuals rather thanfirms

C) buildings, equipment, and machinery owned by firms

D) the accumulated knowledge and skills that workers acquire from education,training, and their life experiences

Back 20

D

Front 21

Anincrease in ________ shifts the production function ________, and makes itpossible to produce a higher level of GDP with ________ capital per hour worked.

Back 21

technology;up;thesame amount of

Front 22

Acopyright grants the creator of a book, film, or piece of software exclusivelegal rights to use the creation for how long?

Back 22

thecreator's lifetimeplus 70years for thecreator's heirs

Front 23

Accordingto the text, there are three ways the government can help increase theaccumulation of knowledge capital. What are they?

Back 23

1)protecting intellectual propertyrights

2)subsidizing research anddevelopment

3) subsidizing education

Front 24

Someeconomists argue that the apparent slowdown in economic growth in the UnitedStates during the mid-1970s may not really have reduced the standard ofliving becausey

Back 24

significantimprovements inthe quality of services occurred, althoughthe quantity of these services did not increase much during thistime

Front 25

Whichof the following can explain why some countries have notexperienced relatively high growth rates in real GDP per capita despiterelatively low initial levels of real GDP per capita?

A) Many of these developing countries donot have a functioning court system that can enforce laws.

B) Countries that are relatively poor are more likely to experience wars andrevolutions.

C) Countries that are relatively poor are likely to have a lower quality ofhealth care.

D) all of the above

Back 25

D

Front 26

Enforcingproperty rights in an economy will

Back 26

raisethe level of investment

Front 27

Allof the following policies are ways for a country to promote long-run economicgrowth except

A) increasing vaccinations againstinfectious diseases.

B) undergoing political reform to decrease corruption.

C) enacting stronger laws to protect property rights.

D) imposing stricter regulations to limit foreign direct investment.

Back 27

D

Front 28

Argumentsagainst economic growth might include

Back 28

Negative environment effect

Depletionof natural resources

Diminishmentof distinctive cultures