revision questions chapter 22 pt1

Question 1

According to neoclassical growth theory, the productivity curve shifts upward if…

Answer 1

technological progress occurs

Question 2

If the quantity of capital per worker in the economy increases,

Answer 2

labour productivity increases.

Question 3

Labour productivity is measured by…

Answer 3

real GDP per hour of labour

Question 4

Human capital is, in part,

Answer 4

a worker’s stock of knowledge

Question 5

fact

Answer 5

Real GDP per person in Hong Kong and Singapore are approaching that in the United States.

Question 6

Which of the following directly creates growth in labour productivity?
I. Growth in capital per hour of labour.
II. Technological change.
III. Population growth.

Answer 6

I&II

Question 7

Convergence of the income gap has been most dramatic between

Answer 7

Hong Kong and the big four countries of Europe.

Question 8

Economics became known as the “Dismal Science” because of the…

Answer 8

classical growth theory prediction (population growth) forecasting low wages in the future

Question 9

labour productivity=

Answer 9

Y (output) / L (labour)

Question 10

Which of the following are necessary for economic growth?
I. Incentive systems.
II. Established and enforced rights to own physical properties.
III. Liberal democracies

Answer 10

I & II