Economic growth

True

(True/False) High rates of saving and investment in a country will result in greater economic growth if they are accompanied by advances in technology than if they are not.

True

(True/False) High rates of saving and investment in a country will result in greater economic growth if they are accompanied by more investment in human capital than if they are not.

True

(True/False) Human welfare is greatly influenced by long-term changes in a nation's capacity to produce goods and services

False

(True/False) If the quantity of physical capital in a country increases at the same time that the quantity or quality of labor resources used falls, that country would experience economic growth as a result.

True

(True/False) Injections of foreign capital from abroad may contribute to a nation's economic growth.

True

(True/False) One of the most important determinants of economic growth is a nation's saving rate

True

(True/False) One of the most important determinants of economic growth is the saving rate.

True

(True/False) Technological advances involve both invention and innovation.

True

(True/False) Technological advances, even without any change in the quantity or quality of the labor resources used, tend to lead to economic growth.

False

(True/False) The correlation between per capita output and the proportion of the population that is unable to read and write is small

True

(True/False) Trade can make economies more productive, even if individual enterprises don't become more efficient.

Its current consumption would have to fall or its future consumption possibilities will rise.

If a country increased its saving rate...

The rate of population growth exceeds the rate of growth of real GDP

The standard of living will decline if...

True

(True/False) Greater stocks of land, labor, or capital can shift the production possibilities curve outward.

False

(True/False) High rates of saving and investment in a country guarantee rapid economic growth.

True

(True/False) High rates of saving and investment in a country tend to increase economic growth but do not guarantee it.

False

(True/False) A limited resource base is no obstacle to economic growth.

True

(True/False) Along the production possibilities curve, the economy is producing at its potential output, sometimes called its natural level of output.

True

(True/False) An increase in labor input does not necessarily increase output per capita.

False

(True/False) Both the initial development process and the sustained growth of an economy are dependent on a large natural resource base.

True

(True/False) Economic growth depends on the quality and type of investments made

True

(True/False) Economic growth is a complex process involving many important factors, no one of which completely dominates.

False

(True/False) Economic growth is usually measured by the annual percent change in the nominal output of goods and services per capita.

False

(True/False) Economic growth rates tend to be lower in countries where property rights are better enforced by government.

True

(True/False) Education is both a consequence of economic growth and a cause of economic growth.

True

(True/False) Free-trade policies will tend to increase the value of total output in an economy

Technological progress occurs or the productivity of labor increases

An economy's production possibilities curve will shift outward over time if...

Real GDP

Economic growth is usually measured by the annual percent change in...

Devoted to research and development

Economic growth tends to be greater in countries where more resources are..

Effectively protects property rights

Economic growth tends to be greater in countries where the government...

Freedom to trade freely

Economic growth tends to be greater in countries where there is greater...

Real GDP per capita

Economists typically measure economic growth by tracking...

Technology, the quantity of available natural resources, the productivity of labor, and the stock of available capital

How much the economy can produce at its natural rate of output depends on...

Less, because of an unreliable infrastructure for protecting property rights

In a country that has an unstable government or judiciary, would you expect to see more entrepreneurial activity, or less? Why?

Its rate of productivity growth

In the long run, the most important determinant of a nation's standard of living is...

Can be acquired through on-the-job training and is an important source of economic growth

Investment in human capital...

The rate of change of real GDP per capita

Other things being equal, the higher the rate of savings across countries, the higher...

The labor force participation rate in the country rose

Per capita real output would tend to rise, other things being equal if...

A cause of cconomic growth and caused by cconomic growth

Reduced levels of illiteracy are in part, both...

Government protection of property rights, increased specialization of labor, research and development, and improved efficiencies through economies of scale

Which is considered a factor that contributes to economic growth?

Improved public education, improved health care systems, and larger budgets for research, development, and exploration

Which one of the following will cause the production possibilities curve to shift outward?