revision questions chapter 22 pt1 Flashcards
According to neoclassical growth theory, the productivity curve shifts upward if…
technological progress occurs
If the quantity of capital per worker in the economy increases,
labour productivity increases.
Labour productivity is measured by…
real GDP per hour of labour
Human capital is, in part,
a worker’s stock of knowledge
fact
Real GDP per person in Hong Kong and Singapore are approaching that in the United States.
Which of the following directly creates growth in labour productivity?
I. Growth in capital per hour of labour.
II. Technological change.
III. Population growth.
I&II
Convergence of the income gap has been most dramatic between
Hong Kong and the big four countries of Europe.
Economics became known as the “Dismal Science” because of the…
classical growth theory prediction (population growth) forecasting low wages in the future
labour productivity=
Y (output) / L (labour)
Which of the following are necessary for economic growth?
I. Incentive systems.
II. Established and enforced rights to own physical properties.
III. Liberal democracies
I & II