Exam 8: Productivity and Growth

Productivity growth averaged approximately 3 percent per year between 1948 and 1973; since that time it has averaged approximately 5 percent annually.

Many people believe that government should promote

The diminishing slope of the per-worker production function reflects the law of diminishing marginal returns.

Most economists agree that the most important factor contributing to the recent reduction in U.S. labor productivity growth rate has been the increased level of government regulation.

The share of research and development funding supported by the federal government has increased over the past three decades.

Labor productivity tends to fall as the capital-labor ratio rises.

Human capital represents

Exhibit 8-1 -The movement from point A to point B in Exhibit 8-1 could illustrate the result of

The jump in labor productivity that began in the 1990s occurred mostly in the

Between 1982 and 2002, U.S. GDP per capita grew at an average rate of 2.2 percent per year.

Which of the following does not contribute to an improved standard of living?

The reason why small changes in productivity growth rates have large long-term effects on economic growth over the long run is that

The rules of the game refer to

An improvement in the quality of capital would

Since 1870, U.S. labor productivity growth has averaged roughly 2.1 percent annually.

Suppose the growth rate of employment is positive but labor productivity remains unchanged. What will happen to real GDP?

Applied research is the search for knowledge without regard to how that knowledge will be used.

Which of the following would not slow down productivity growth?

The growing use of computers has led to a substantial increase in overall U.S. productivity growth since the 1996.

If Q is total real output, K is capital in use, L is labor employed, and the productivity of labor grows, other things constant, then