Exam 8: Productivity and Growth

Exhibit 8-1 -In Exhibit 8-1,Tasmania is currently operating at point A on the per-worker production function.An improvement in technology will produce a movement from A to

Which of the following does not contribute to labor productivity growth?

Exhibit 8-1 -In Exhibit 8-1,Tasmania is currently operating at point A on the per-worker production function.An improvement in the quality of capital used by workers will produce a movement from A to

An improvement in the quality of capital would

The process of adding more capital per worker is known as "capital deepening."

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

The diminishing slope of the per-worker production function reflects the law of diminishing marginal returns.

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?

Over the last century,U.S.labor productivity has

Between 1959 and 2003,the average annual growth rate of real GDP per capita in the United States was about

Which of the following is the best indicator of the standard of living?

A country that has a higher percentage of younger adults with at least a college degree is

People in affluent countries may not be getting any happier over time because

Labor productivity the United States has never fallen has never fallen from one year to the next.

Which of the following would be likely to cause a decrease in the labor productivity growth rate?

Between the 1880s and the early 21st century,U.S.productivity increased at a constant annual rate.

Exhibit 8-2 -The shape of the per-worker production function in Exhibit 8-2 illustrates the law of diminishing marginal returns to labor.

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

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

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