Exam 17: Market Failure: Externalities, public Goods, and Asymmetric Information

__________ rights refer to the range of laws,rules,and regulations that define rights for the use and transfer of resources.

When interest rates in a given economy are reduced,it causes firms to employ __________ capital goods.In terms of the production function (graphed with labor on the horizontal axis and Real GDP on the vertical axis),this then causes ____________________ .

The Real GDP of country X doubled in 10 years.It follows that

The Real GDP of country X doubled in 20 years.It follows that the annual growth rate in country X during this time period was

Suppose that the production function for an economy is graphed with Real GDP on the vertical axis and labor on the horizontal axis.When the level of capital in this economy rises,it causes ____________________which shifts the LRAS curve ____________ resulting in ______________________.

Neoclassical growth theory emphasized how __________ contribute to growth.

Business cycle macroeconomics deals with ___________Natural Real GDP level,while economic growth macroeconomics deals with ________________ Natural Real GDP level.

Per-capita real economic growth refers to an increase from one period to the next in

Real GDP in a small country is worth $40 billion.The population of the country is 1.666,000.What is the country's approximate per capita Real GDP?

According to economist Benjamin Friedman,sustained economic growth can make people more willing to work toward improving the environment and reducing poverty.

According to Paul Romer,one way to produce more ideas and knowledge is by

According to some economists,economic growth can be promoted by certain institutions which promote the discovery of new ideas.

Suppose the population of country XYZ falls from 10 million to 9 million.If the country's Real GDP falls from $325 billion to $297 billion during this same period,the result is _________________ economic growth.

Production Function Real GDP = T (L,K),such that Real GDP = T(L + K) Assume that the technology coefficient is equal to 0.40. -Refer to Exhibit 17-1.If this production function is graphed with Real GDP on the vertical axis and labor on the horizontal axis,and the technology coefficient rises from 0.40 to 0.50,it would cause a

If the annual growth rate in Real GDP is 4 percent,then it will take 25 years for the economy to double in size.

The concept that economic growth can do more than just give us more goods and services goes back to Adam Smith.

Production Function Real GDP = T (L,K),such that Real GDP = T(L + K) Assume that the technology coefficient is equal to 0.40. -Refer to Exhibit 17-1.If there are 4 units of capital and 6 units of labor,________ units of output (Real GDP)will be produced.

Suppose the population of country ABC rises from 40 million to 44 million.If the country's Real GDP rises from $825 billion to $890 billion during this same period,the result is _________________ economic growth.

The term human capital refers to education,training and experience.

Changes in the tax treatment of capital returns can result in a change in the amount of capital employed in the production process.