Exam 8: Why Do Economies Grow?

Recall the Application about the possibilities of transformative economic growth in authoritarian and participatory political institutions to answer the following question(s). -According to this Application, economist Daron Acemoglu categorizes which of the following as authoritarian institutions?

The process by which monopoly profits leads to technological progress in known as

According to human capital theory, all of the following help make workers more productive EXCEPT

In developing countries, economists have found ________ correlation between a person's height and the wages he can earn in the farming sector.

In terms of technological progress, economists interpret this as meaning an economy operates more efficiently by producing more output without using any more inputs.

Increases in the stock of capital are the result of decreases in

In what two ways can education contribute to economic growth?

Using the rule of 70, if the GDP per capita growth rate in the United States is 4.4 percent, real GDP per capita doubles every

Which of the following is an example of technological progress?

GDP per capita means GDP

According to Robert Solow, the production function should be written as

To determine the change in the capital stock, the level of new investment must be adjusted for depreciation because some new investment

In the Solow model, if total saving exceeds depreciation,

Recall the Application about cultural factors in England and their relevance to the Industrial Revolution to answer the following question(s). In studying the economic history of England before the Industrial Revolution, Professor Gregory Clark found that children of the more affluent members of English society were more likely to survive than those of the less affluent. Coupled with the slow growth of population over several centuries, this differential survival of the wealthy had the effect of creating downward mobility for the rich, as their sons and daughter increasingly populated the society. -According to the Application, the differential survival of the wealthy created an environment

The absence of clear property rights

Recall the Application about adapting growth accounting to new developments in the economy to answer the following question(s). -According to this Application, economists Carol Corrado and Charles Hulten found that in recent years, as a source of economic growth,

-Refer to Figure 8A.2. If the economy were originally saving at the rate S₁ but changed to the rate S₂,

Recall the Application about adapting growth accounting to new developments in the economy to answer the following question(s). -According to this Application, economists Carol Corrado and Charles Hulten found that

Suppose that one country has a GDP that is ten percent of its richer neighbor, but the poorer country is growing at a rate of eight percent per year while the richer country is growing at a rate of two percent per year. Which country will be richer in 60 years?

Gross investment minus net investment is equal to