Ch 9 Pt 2 Flashcards
Economic research shows that ______ in explaining international differences in living standards.
human capital is at least as important as physical capital
Empirical results justify substantial government subsidies to research based on the finding that the:
the private return to research is less than the social return to research.
Examination of recent data for many countries shows that countries with high saving rates generally have high levels of output per person because:
high saving rates lead to high levels of capital per worker.
The preponderance of empirical evidence supports the hypothesis that economies that are open to trade _____ than comparable closed economies.
grow more rapidly
Public policies in the United States designed to stimulate technological progress do not include
tax breaks to encourage homeownership.
Think an economy with a growing GDP, a growing population, and a rate of saving “s.” To calculate the rate of growth of capital per worker, one would need to take into account:
the rate of saving, the rate of capital depreciation, and the rate of employment growth.
If the capital stock equals 200 units in year 1 and the depreciation rate is 5 percent per year, then in year 2, assuming no new or replacement investment, the capital stock would equal _____ units.
190 units
______ cause(s) the capital stock to rise, while ______ cause(s) the capital stock to fall.
Investment; depreciation
This question asks about four periods indicated on this graph. Each three-year period is marked with two vertical lines. In which period are the changes in net exports, national saving, and investment most consistent with Congress enacting tax cuts and the US dollar appreciating?
Period 1, 1987-1990
Period, 1994-1997
Period 3, 2001-2004
Period 4, 2011-2014
Schumpeter’s thesis of “creative destruction” is an explanation of economic progress resulting from:
new product producers driving incumbent producers out of business.
