Exam 7: Production and Growth

What do economists call the inputs used to produce goods and services?

If a country's saving rate increases,what happens in the long run?

Last year,real GDP per person in Olympus was $6500.The year before,it was $5500.What was the growth rate of real GDP per person?

Which statement best explains economists' understanding of the facts concerning the relationship between natural resources and economic growth?

What do economists call the equipment and structures available to produce goods and services?

Which nation experienced average rates of economic growth of more than 2.0 percent between 1900 and 2010?

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?

Which statement best defines technological knowledge?

One reason that governments may find it useful to sponsor universities and basic research is that,to a large extent,knowledge is a public good.

Which of the following is considered human capital?

If a country's saving rate increases,what happens in the long run?

In approximately how many years will real GDP per person in Canada double,given its average growth rate during the past century?

Which country had the slowest growth between 1870 and 2010?

Senator Noitall says that in order to help poor countries develop,Canada should (1)prevent Canadian corporations from investing in poor countries because they take profits that the poor countries should have; (2)not import goods from poor countries that use child labour; (3)work to promote political stability in poor countries; and (4)reduce poor countries' reliance on market forces in their economies.Which of these ideas is likely to help poor countries grow?

Some civil society groups and activists propose a zero-economic-growth policy in order to preserve the environment.Write an essay to discuss the pros and cons of this proposal.You may wish to refer,among other ideas,to the following: $\bullet$ Economic growth needs to compensate for the increase in population. $\bullet$ If population becomes older,the number of active persons decreases; therefore,productivity must increase to sustain a high standard of living. $\bullet$ An increase in standard of living is only possible if an economy becomes more productive.(Income per person is closely related to labour productivity.) $\bullet$ It is hoped that economic growth will eventually eradicate poverty. $\bullet$ Economic measures of well-being,such as GDP per capita,are imperfect mainly because they disregard external costs of economic activity,as well as other aspects of life that people value,such as leisure,fairness,and income equality.

Which statement best explains the falling inflation-adjusted prices of most of the natural resources?

Which of the following would NOT be considered physical capital?

Which of the following best describes natural resources?

The following is a comment to the article "Are jobs obsolete?" by Douglas Rushkoff,Special to CNN September 7,2011 (http: / / goo.gl / 0aUXL): Karaya: "We are at the point where the growth of human population becomes liability rather than asset.Higher sustainable standards of living can be maintained with much less population,and population growth actually can lead to humankind decline - just by depletion of environmental resources alone." Karaya's comment implies that lower population would actually increase standards of living due to advances in technology.What do theories of growth have to say about the effect of population increase on economic prosperity? Is there a connection between a country's population,its technology,and its standard of living? What kind of information would you need to try to answer this question? How would an answer to this question look like?

Other things the same,countries with low income are likely to increase their income more by adding another unit of capital than are countries that have high income.