Exam 7: Production and Growth

How does the political environment affect economic growth?

Once one person discovers an idea,the idea generally enters society's pool of knowledge.Therefore,knowledge is generally what kind of good?

Suppose that Poland undertakes policy to increase its saving rate.What will this policy most likely 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.

Which statement illustrates an important fact about population growth?

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

Which of the following is considered human capital?

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?

Which country had the lowest growth rate over the period 1870 and 2010?

If the production function for an economy had constant returns to scale,the labour force doubled,and all other inputs stayed the same,what would happen to real GDP?

In the 1800s,Europeans purchased stock in Canadian companies,which used the funds to build railroads and factories.What type of investments did the Europeans make?

Why is productivity related to the standard of living? In your answer be sure to explain what productivity and standard of living mean.Make a list of things that determine labour productivity.

An increase in the saving rate does not permanently increase the growth rate of real GDP per person.

In medieval Europe,an important technological advance was the use of the padded horse collar for plowing.Once this idea was thought of,other people used it.What does this example illustrate about knowledge?

Use the data below to find the growth of income per person (over the entire period,not an annual basis)between the two years listed. Year Real GDP Population 1990 $5,915,600 million 240 million 2015 $10,243,800 million 295 million

How can a government encourage growth and,in the long run,raise the country's economic standard of living?

Both the standard of living and the growth of real GDP per person vary widely across countries.

In the country of Krypton,the price of lead increased from $20 per kilogram to $22 per kilogram during a time when the overall price level increased by 6 percent.During this period,what happened to the real price of lead?

What do property rights refer to?