Exam 9: Productivity and Growth

Which of the following best describes the impact of technological change on labor?

The slope of the per-worker production function diminishes as the amount of capital per worker increases. This is a reflection of the law of

Over the long run, technological change increases both labor productivity and unemployment rates.

If the ratio of capital to labor increases, we can expect that labor productivity will increase.

Basic research has less immediate payoff to society but is likely to be more important than applied research in fostering long-term growth.

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

Which of the following is an example of basic research?

Physical capital includes all of the following except

The major industrialized country with the highest level of per capita real output in 2012 was

If both total employment and total output always grew by 2 percent each year, what would the annual growth in labor productivity in an economy be over a decade?

If on-the-job experience causes labor productivity to increase, that is the result of an improvement in human capital.

An increase in the quantity of capital per worker would

Research and development contributes most to productivity growth through its impact on the

In the long run, the economy needs applied research, which is geared toward specific products, more than it needs basic research, which is not motivated by or directed toward manufacturing.

Applied research

The difference between human capital and physical capital is that

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

The productivity growth slowdown of the late 1970s and early 1980s may have been due, in part, to the environmental and workplace safety legislation.

Human capital includes the machinery, equipment and other manufactured creations used to produce goods and services.

Education makes workers aware of the latest production techniques and more receptive to new approaches and methods.