Macroeconomics chapter 12 all terms

Renewable resources

Natural resources that can be reproduced

Nonrenewable resources

Natural resources that is limited and supply

Outward oriented policy

Policies that decrease international trade restrictions

Inward-oriented policies

Policies that increased international trade restriction

Infant-industry argument

Restricted international trade to protect fledging domestic industry from foreign competition

Thomas Mathes argues that:

See. And ever increasing population is constrained only buy the food supply, resulting in chronic Famines.

When a nation has very little GDP per person,

See. It has the potential to grow relatively quickly due to the catch-up effect

The opportunity cost of growth is:

See. The reduction. Consumption.

Many East Asian countries are growing very quickly because:

See. They save and invest in a new Unusual high percentage of the GDP

Which of the following is an example of 40 per folio investment?

See. Toyota buys a stock in ford, and ford uses the proceeds to buy a new plant in Michigan.

Property rights

The ability of people to exercise control over resources

Catch up effect

The property that pours, poor countries tend to grow more rapidly than richer countries.

Real GDP per person

The quantity of goods and services available for the average individual in the economy.

Productivity

The quantity of goods and services produced from each unit of labor input

Production function

The relationship between input and output from production

Growth rate

The relationship between inputs and outputs from production

Physical capital

The stock of equipment and structures used to the produce output

Public good

A good that we may all use at the same time without diminishing another's benefits

Constant returns to scale

A production process when doubling all the inputs double the outputs

Which of the following describes an increase in technological knowledge?

A. A farmer discovers that it is better to plant in the spring rather than in the fall.

A reasonable measure of standard of living in a country is:

A. Real GDP per person.

Which of the following statements regarding the impact of population growth on production is true?

D. All the above are true

If real GDP per person in 2009 is $18,073 and real GDP per person in 2010 is $18,635, what is the growth rate of real output over this.?

B. 3.1%

If a production function exhibits constant returns to scale,

B. Dublin all of the inputs double output.

Which of the following government policies is least likely to increase growth in Africa?

B. Increase restrictions on the Importing of Japanese auto bills and electronics

Once a country is Wealthy:

B. It may be harder for it to grow quickly because of the diminishing returns to capital.

Which of the following expenditures to enhance productivity is most likely to admit positive externality?

B. Susan pays her college tuition.

Foreign portfolio investment

Capital investment financed, with foreign money but operated by domestic residence

Foreign direct investment

Capital investment owned and operated by foreigners

Copper is an example of:

D. A nonrenewable natural resources

Which of the following statements is true?

D. Countries have great variance in both the level and growth rate of GDP per person's; thus, poor countries can become relatively rich over time.

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:

D. Labor

Are standard of living is most closely related to:

D. Our productivity because our income is equal to what we produce.

Human capital

Do you know Alex and skills that workers acquired through education, training, and experience.

To increase growth government should do all the following except:

E. Nationalize major industries.

Madeline goes to college and read so many books while at school. Her education increases which of the following factors of production?

Eight. Human capital

Evidence of rising prices for natural resources demonstrate that non-renewable resources will become so scarce that economic growth will be limited

Falls

Human capital refers to human made capital such as tools and machinery, as opposed to natural capital such as rivers and temper

Falls

An increase in the rate of saving and investment permanently increases a country's rate of growth.

False

Most economists believe that inward oriented policies that protect infant industry improve the growth rates of developing nations

False

The United States should grow faster than Japan because the United States has a larger economy

False

A country can only increase its level of investment by increasing its saving.

Faults

Economic evidence supports the predictions of Thomas Malthus regarding the effects of population growth and the food supply of the standard of living.

Fox

Technological knowledge

Hey societies understanding about the best ways to produce goods and services

Mazda build a new plant in Illinois:

Hey. In the future, US GDP or rice more than US GNP

National resources

Inputs into production provided by Nature

Factors of production

Inputs used in production, such as labor, capital, and natural resources

An increase in capital shit cause the growth rate of a relatively poor country to increase more than that of a rich country

True

If Germans in fast in the US economy by building a new Mercedes factory in the future US GDP will rise by more than US GNP

True

If a production function exhibits constant returns to scale, then doubling all of the inputs double I'll put.

True

In very poor countries, paying parents to send their children to school may increase the education of poor children and decrease the use of child labor.

True

Investment in human capital and technology may particularly Be productive because of positive spill over a fax.-

True

The only factor of production that is not produced is natural resources

True

The opportunity cost of additional growth is that someone must for a girl current consumption.

True

The rate of economic growth is probably under estimated

True

diminishing return

When the incremental increase in output declines as equal increments of an input or add it to the production

Externality

Where are the actions of one person affect the well-being of a bystander