Exam 12: Production and Growth: Part A

Does a country have to be blessed with large quantities of natural resources in order to enjoy a high standard of living? Briefly explain.

Explain the distinction between technological knowledge and human capital.

In the United States over the past century,real GDP per person has grown by about ---------- percent per year.

What are inward-oriented policies? Do most economists recommend these types of policies to poor countries?

How does the phenomenon of diminishing returns to capital explain the catch-up effect?

Some economists argue that it is possible to raise the standard of living by reducing population growth.As an economist interested in incentives rather than coercion,what kind of policy would you recommend to slow population growth?

In recent decades,economic growth has been much more rapid in South Korea than in the United States.What is the likely explanation for this fact?

Consider the nations of Brazil,Mexico,and Pakistan.Over the past century,which of these three nations has experienced,by far,slower economic growth than the other two nations?

Some data that at first might seem puzzling: The share of GDP devoted to investment was similar for the United States and South Korea from 1960-1991.However,during these same years South Korea had a 6 percent growth rate of average annual income per person,while the United States had only a 2 percent growth rate.If the saving rates were the same,why were the growth rates so different?

Research suggests that taller workers tend to earn more income than shorter workers.What does this suggest about the relationship between workers' height and their productivity?

In addition to investment in physical and human capital,what other public policies might a country adopt to increase productivity?

Compare and contrast the population theories of Malthus and Kremer.

Studies have found that there is a relationship between height and productivity.Briefly explain.

"When workers acquire tools,they become more productive." This statement reflects the general fact that ---------- is a determinant of productivity.

Is coal a produced factor of production?

Figure 25-1 -Refer to Figure 25-1.Does the figure represent the idea that the amount of capital per worker influences the amount of output per worker,or does the figure represent the idea that the amount of output per worker influences the amount of capital per worker?

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

Is physical capital a produced factor of production? Is human capital a produced factor of production?

The catch-up effect says that countries with low income can grow faster than countries with higher income.However,in statistical studies that include many diverse countries we do not observe the catch-up-effect unless we control for other variables that affect productivity.Considering the determinants of productivity,list and explain some things that would tend to prohibit or limit a poor country's ability to catch up with the rich ones.

John and Miguel are fishermen.When they go fishing,John consistently catches 2 or 3 fish per hour,while Miguel consistently catches 5 or 6 fish per hour.Miguel's ---------- exceeds that of John.