Chapter 12: Production and Growth
Technological knowledge...
is a determinant of productivity
catch-up effect
the property whereby countries that start off poor tend to grow more rapidly than countries that start off rich
diminishing returns
the property whereby the benefit from an extra unit of an input declines as the quantity of the input increases
productivity
the quantity of goods and services produced from each unit of labor input
physical capital
the stock of equipment and structures that are used to produce goods and services
Which of the following countries had the highest growth rate over the last 100 years or so?
Brazil
In the United States, as measured by real GDP per person, average income is about how many times as high as average income a century ago?
8
Industrial machinery is an example of...
a factor of production that in the past was an output from the production process, physical capital, and something that influences productivity
Which of the following is an example of a nonrenewable resource?
coal
In determining living standards, productivity plays a key role...
for both nations and individuals
Despite its status as one of the richest countries in the world, Japan...
has a few natural resources
Productivity is the...
key determinant of living standards, and growth in productivity is the key determinant of growth in living standards
Human capital is...
knowledge and skills that workers acquire through education, training, and experience
The inputs into production of goods and services that are provided by nature, such as land, rivers, and mineral deposits are called...
natural resources
Which of the following items plays a role in determinant productivity?
physical capital, natural resources, and technological knowledge
Productivity is the amount of goods and services...
produced for each hour of a worker's time; it is linked to a nation's economic policies
The one variable that stands out as the most significant explanation of large variations in living standards around the world is...
productivity
A nation's standard of living is best measured by its...
real GDP per person
technological knowledge
society's understanding of the best ways to produce goods and services
Understanding of the best ways to produce goods and services is called...
technology
natural resources
the inputs into production of goods and services that are provided by nature, such as land, rivers, and mineral deposits
human capital
the knowledge and skills that workers acquire through education, training, and experience