Chapter 7 Macro Questions
a nonrenewable natural resource
Copper is an example of
our productivity because our income is equal to what we produce
our standard of living is most closely related to
the property whereby the benefit from an extra unit of an input declines as the quantity of the input increases
Diminishing Returns
Real GDP per person
A reasonable measure of the standard of living in a country is
the property whereby countries that start off poor tend to grow more rapidly than countries that start off rich
Catch up effect
Labor
For a given level of technology, we should expect an increase in labor productivity within a nation when there is an increase in each of the following except
The knowledge and skills that workers acquire through education, training and experience
Human Capital
3.1%
If real GDP per person in 2009 is $18,073 and real GDP per person in 2010 is $18,635 hat is the growth rate of real output over this period?
human capital
Madelyn goes to college and reads many books while at school. Her education increases which of the following factors of production?
they save and invest an usually high percentage of their GDP
Many East Asian countries are growing very quickly because
the inputs into the production of goods ad services that are provided by nature, such as land, rivers and mineral deposits
Natural Resources
It may be harder for it to grow quickly because of the diminishing returns to capital.
Once a country is wealthy
the stock of equipment and structures that are used to produce goods and services
Physical Capital
the quantity of goods and services produced from each unit of labor input
Productivity
society's understanding of the best ways to produce goods and services
Technological Knowledge
It has the potential to grow relatively quickly due to the "catch-up effect."
When a nation has very little GDP per person
A farmer discovers that it is better to plant in the spring rather then in the fall
Which of the following describes an increase in technological knowledge
Countries have great variance in both the level and growth rate of GDP per person; thus; poor countries can become relatively rich over time
Which of the following statements are true
Current consumption
the opportunity cost of growth is a reduction in
Toyota buys stock in ford, and ford uses the proceeds to build a new plant in Michigan
which is an example of a of foreign portfolio investment
Susan pays her college tuition
which of the following expenditures to enhance productivity is most likely to emit positive externality?
increase restrictions on the importing of Japanese automobiles and electronics eliminate civil war
which of the following government policies is least likely to increase growth in Africa
