Exam 9: Productivity and Growth

Exhibit 8-1 -Point C in Exhibit 8-1 represents an unatainable output per worker with current technology.

"The most important factor in determining a nation's standard of living in the long run is the productivity of its resources."

The difference between basic and applied research is that

Exhibit 8-1 -The bowed shape of the per-worker production function in Exhibit 8-1 illustrates the law of diminishing marginal returns from capital.

Productivity is measured as output per unit of productive input.

Basic research seeks to answer specific questions or to apply scientific discoveries to the development of specific products.

Productivity growth averaged approximately 3 percent per year between 1948 and 1973; since that time it has averaged approximately 5 percent annually.

All of the following might cause an increase in economic growth, but which would be least certain to do so?

Exhibit 8-1 -A technological improvement would make point C in Exhibit 8-1 attainable.

If increases in capital per worker lead to increased output per worker, but by decreasing amounts as capital increases, the per-worker production function

An example of industrial clustering is

Government policy that uses taxes, subsidies and regulation for the purpose of giving domestic industry an advantage, is known as

A decrease in the capital-labor ratio means

Which is the resource whose quality is most often enhanced by technological change

Which of the following best defines basic research?

Labor productivity measures

Which of the following did Simon Kuznets find to be the driving force behind modern economic growth?

Human capital represents

Industrial market countries make up about 16% of the world population but produce nearly 50% of the worlds output.

If Q is total real output, K is capital in use, L is labor employed, and the productivity of labor grows, other things constant, then