Exam 7: Production and Growth

Last year, real GDP in Oceania was $620 billion and the population was 2.3 million. The year before, real GDP was $502 billion and the population was 2.0 million. What was the approximate growth rate of real GDP per person?

Which statement best describes the relationship between the initial wealth and the growth rate of a country?

Compared to the income of the typical Canadian 138 years previously, how much was the income of the typical Pakistani in 2010?

Laurie works 8 hours and produces 7 units of goods per hour. Iris works 6 hours and produces 10 units of goods per hour. What can we conclude?

Sydney Seger is a nurse. What is a part of her human capital?

The president of a developing country proposes that his country needs to help domestic firms by imposing trade restrictions. What kind of policies are these?

The annual population growth rate in developed countries is about 1 percent, while the growth rate in developing countries is about 3 percent.

In addition to investment in physical and human capital, what other public policies might a country adopt to increase productivity

What is a direct determinant of productivity?

Suppose that an economy with constant returns to scale doubled its physical capital stock, doubled its available natural resources, and doubled its human capital, but kept the size of the labour force the same. How does the change in output compare to the change in productivity?

Your company discovers a better way to produce vacuum cleaners, but your better methods are not apparent from the vacuums themselves. What kind of knowledge is this?

What best defines human capital?

In 1870, what was the richest country in the world?

Other things equal, how do relatively poor countries tend to grow?

In Canada, approximately how much higher is GDP per person today than it was a century ago?

A management professor discovers a way for corporate management to operate more efficiently. He publishes his findings in a journal. How are his findings best defined?

Compare and contrast the population theories of Malthus and Kremer.

On average, by how much does each year of schooling raise a person's wage in Canada?

Economists differ in their views of the role of the government in promoting economic growth. According to the text, at the very least, what should the government do?

Suppose an economy uses only two inputs in production: capital and labour. The following table describes a production function, where y stands for output per worker and k is capital per worker. a) Draw approximately this production function with y on the vertical axis. b) Show that this production function exhibits diminishing returns to scale. c) Suppose there are two countries, A and B. The economies of the two countries can be described by this production function. If Country A has initially a capital-labour ratio k = 0.167 and Country B has k = 0.412, show that an equal increase in capital produces more extra output in country A than in Country B.