Exam 7: Production and Growth

Economist Michael Kremer provides some support for the hypothesis that an increase in population might foster economic prosperity.Which statement best explains this hypothesis?

How is a nation's standard of living determined?

What is a correct way to measure productivity?

A country that made its courts less corrupt and its government more stable would likely see its standard of living rise.

Indonesians have a lower standard of living than Canadians because they have a lower level of productivity.

International data on the history of real GDP growth rates show that the rich countries get richer and the poor countries get poorer.

Which of the following does Y / L refer to?

Which of the following goods does a patent turn a new idea into?

From 1960 to 1990,the ratio of investment to GDP in South Korea was higher than in Canada and so South Korea had substantially higher growth.

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?

Suppose that there are diminishing returns to capital.Suppose also that two countries are the same except one has less capital,and so less real GDP per person.Suppose that both increase their saving rate from 3 percent to 4 percent.What will happen in the long run?

Suppose Mexico increases its saving rate.What will happen in the long run?

What is the effect of a higher saving rate in the long run?

The dictator of Turan has recently begun to arbitrarily seize farms belonging to his political opponents,and he has given the farms to his friends.His friends don't know much about farming.The courts in Turan have ruled that the seizures are illegal,but the dictator has ignored the rulings.Other things equal,what would we expect to happen to the growth rate in Turan?

The article "Are jobs obsolete?" by Douglas Rushkoff,Special to CNN September 7,2011,states the following (http: / / goo.gl / 0aUXL): "According to the U.N.Food and Agriculture Organization,there is enough food produced to provide everyone in the world with 2,720 kilocalories per person per day.And that's even after America disposes of thousands of tons of crop and dairy just to keep market prices high.Meanwhile,American banks overloaded with foreclosed properties are demolishing vacant dwellings to get the empty houses off their books." a)Is it true that "America disposes of thousands of tons of crop and diary to keep market prices high?" (Search for additional sources of information in this regard.)What would be the effect of such policies on economic growth? b)If there is a surplus of commodities in the developed world,why is it not given in aid to poor countries? (You may need to look for further information to answer this question.)

Over the past century in Canada,by how much has average income grown as measured by real GDP per person?

Why do birth rates tend to be lower in developed countries than in developing countries?

There is some controversy concerning what the source of the Canadian productivity slowdown was in the period of 1974 to 1982.What is the most likely explanation?

The real GDP per capita in an economy increases at a rate of 2.6 percent.Calculate the number of years that it takes for real GDP to double.Assuming that the current GDP per capita is $40,000 and the growth rate will be on average 2.6 percent,how much will GDP per capita be after 10 years? After 20 years? After 30 years? Draw a graph to show approximately the evolution of this economy for the next 30 years.

Economists generally believe that outward-oriented policies are more likely to foster growth than inward-oriented policies.