Ch 8 Flashcards
The number of years required for real GDP to double can be found by
Dividing 70 by the annual growth rate
Real GDP per capita is found by
Dividing real GDP by population
Countries that have experienced modern economic growth have also tended to
Move towards more democratic forms of government
Real per capita GDP
Was much more equal across nations in 1820s and it is today
Which of the following statements is most accurate about the prospects for poorer countries catching up with richer countries
Catching up is possible as follower countries tend to grow faster than leader countries
True or false total output equals worker hours times labor productivity
True
Other things equal, which of the following would increase the rate of economic growth, as measured by changes in real GDP
An increase in the size of the working age population
The largest contributor to increases the productivity of American labor is
Technological advance
Other things equal, if a full employment economy reallocated a substantial quantity of its resources to capital goods, we would expect
Labor productivity to rise
Other things equal, which of the following would increase labor productivity the most
The increase in the stock of real capital exceeds the increase in inputs of labor
Increases in the value of a product to each user, including existing users, as the total number of users prices are called
Network effects
Between 1995 and 2009, the US productivity rate
Grew substantially compared to prior years, leading Some economist to predict a long-lasting resurgence of productivity growth
True or false economist who support economic growth say that it is the most practical route to the higher standards of living that the vast majority of people desire
True
The main point of the consider this box about hypothetical country’s Slogo, Sumgi, and Speedo is that over several decades different
Economic growth rates create large differences in real GDP per capita
True or false. Growth is a widely held economical primarily because it creates a more equal distribution of wealth and income
False
Growth is advantageous to a nation because it
Lessens the burden of scarcity
If the economy real GDP doubles and 18 years we can
Conclude that its average annual rate of growth is about 4%
The Industrial Revolution and modern economic growth resulted in
The average human lifespan more than doubling
Supposed that an economies labor productivity and total work hours each grew by 4% between year one and year two. We could conclude that this economies
Production possibilities curve shifted outward
Suppose that an economies labor productivity fell by 3% and it’s total worker hours remained constant between year 1 and 2. we could conclude that this economy
Real GDP declined
Which of the following would not be expected to increase labor productivity
An increase in the size of the labor force
Empirical studies suggest that
Technological advances account for about 40% of US productivity growth
More than half the growth of real GDP in the US is caused by
Increases in the productivity of labor
A nation’s infrastructure refers to
Public capital goods such as highways and sanitation systems
The percentage of US adults with a high school education or above has
Risen from 41% in 1960 to 87% in 2009
If the secular trends of labor productivity rises from 2% per year to 4%, the number of years that it will take for the standard of living to double to decline by about
17 years
Proponents of economic growth say that pollution
Occurs, not because of growth, but because common resources are treated as free goods
To consider this box patents and innovation demonstrates that
Patent protections for US companies may not be as effective when other countries do not respect or enforce US patent laws
