ECON CHAPTER 8

growth

An economy that is experiencing economic ______ is better able to meet people's wants and resolve socioeconomic problems.

strong property rights

Because people will not invest if they believe that thieves, bandits, or a rapacious and tyrannical government will steal their investments or their expected returns, ______ are important.

leader countries

Countries that develop and use the most advanced technologies, which then became available to follower countries, are known as

False

Countries that experienced economic growth earlier than other countries have lower average incomes today.

greater material abundance higher living standards more goods and services

Economic growth provides society ______.

standards of a country

Economists pay attention to small changes in economic growth because small changes in economic growth can make a big difference in the living

full employment

Efficiency factor is when an economy must achieve economic efficiency as well as ______ to reach its full production potential.

full employment

Efficiency factor is when an economy must achieve economic efficiency as well as _______ to reach its full production.

True

Growth enables society to improve nations' infrastructure.

Improvements in technology Increases in the quantity and quality of natural resources Increases in the supply of capital goods Increases in the quantity and quality of human resources

Identify the supply factors that are "determinants" of economic growth.

real output per hour of work

Labor productivity is:

cultural

Modern economic growth has significantly increased the standard of living as well as _____ social, and political arrangements.

Increased leisure time and arts Elimination of archaic social norms Increase in democracies

Other than a higher standard of living and more innovations, which of the following are true of the impacts of modern economic growth in industrialized nations?

labor productivity

Output per hour of work is the definition of:

free; competitive

Strong property rights, ______ trade, patents and ______ market systems are all growth-promoting institutional structures.

no unplanned increase in inventories and resources will remain fully employed

The demand factor involves households, businesses, and government purchasing the economy's expanding output of goods and services so that there will be ______.

supply, demand, efficiency

The determinants that directly affect economic growth can be grouped into which of the following categories?

use its resources in the least costly way to produce the specific mix of goods that maximizes people's well-being

The efficiency factor involves both productive and allocative efficiency, which means in order to reach its full production potential an economy must ______.

enable an economy to expand its potential GDP

The four supply factors that constitute changes in physical and technical agents of production ______.

property rights

The growth-promoting institutional structure that involves the ability of citizens to own land, houses and businesses is called private

demand

The purchase of the economy's expanding goods and services by households, businesses, and the government is known as the ______ factor.

Supply

The six "determinants" of economic growth are grouped into three categories: one demand factor, four ________ factors, and one efficiency factor.

technology

The supply factors that are part of the "determinants" of economic growth include increasing the quality and quantity of natural and human resources, increasing the stock of capital, and improvements in

Higher standard of living

Those countries which experienced modern economic growth earlier than other countries now have significantly ______.

higher standard of living

Those countries which experienced modern economic growth earlier than other countries now have significantly ______.

Countries that develop and use the most advanced technologies

What are leader countries?

Poverty Materialism Pollution

What do antigrowth economists cite as evidence in favor of their argument that growth is undesirable?

Rapid economic growth results in pollution, global warming and other environmental problems. Rapid economic growth has not solved sociological problems like poverty and homelessness. Rapid economic growth is unsustainable due to the earth's finite resources.

Which of the following are arguments against rapid economic growth?

Competitive market system. Efficient financial institutions Strong property rights Patents and copyrights Free trade

Which of the following are growth-promoting institutional structures?

- an increase in real GDP per capita occurring over some time period - an increase in real GDP occurring over some time period

Which of the following are used by economists to define and measure economic growth?

Real GDP rose more than eightfold.

Which of the following statements best summarizes the growth in real GDP in the United States between 1950 and 2018?

Real GDP per capita rose nearly fourfold.

Which of the following statements best summarizes the real economic growth per capita in the United States between 1950 and 2018?