The facts of growth

Question 1

what two main facts emerge when looking at growth in OECD countries?

Answer 1

1. All four countries have experienced strong growth and
   a large increase in the standard of living. Growth from
   1950 to 2011 increased real output per person by a factor of 3.3 in the United States and by a factor of 11.3 in
   Japan.
2. The levels of output per person across the four countries have converged over time. Put another way, those
   countries that were behind have grown faster, reducing the gap between them and the current leader, the
   United States.

Question 2

Malthusian trap

Answer 2

The case of an economy
where increases in productivity lead to a
decrease in mortality and an increase in
population, leaving income per person
unchanged.

Question 3

4 tigers

Answer 3

singapore hong kong taiwan SK

Question 4

PPP

Answer 4

method of adjustment used to allow for
international comparisons of GDP

Question 5

Aggragate production function

Answer 5

Y=F(K,N)

Question 6

Which of the following must occur to sustain economic growth in the long run?
A) Technological progress
B) Capital accumulation
C) A higher saving rate
D) All of the above

Answer 6

A) Technological progress

Question 7

2) In the following production function, Y = f(K, NA), a 20% increase in A will cause which of the following variables to increase by 20%?