economic growth review questions

Which of the following are considered human capital?

-Knowledge acquired from early childhood education programs -Skills acquired f - On-the-job experience -A taxi-cab driver's knowledge of the fastest routes to take -. Knowing how to repair cars

Which of the following are not an examples of physical capital? (Choose all that are not physical capital)

-the knowledge of workers -the available knowledge on how to make semiconductors

Which of the following measures how the level of well-being in a country has changed over time?

. growth rate of real GDP per capita.

Over extended periods of time, population growth

. has uncertain effects on the standard of living.

Investment from abroad

. is viewed by economists as a way to increase growth.

A nation's standard of living is determined by

. the productivity of its workers

In the U.S., each additional year of schooling has historically raised a person's wage on average by about

10 percent (this is the right answer—not sure if we covered it in class)

Suppose the president of Tanzania has announced that she will implement the following measures which she claims are designed to increase growth: 1. Reduce corruption in the legal system; 2. Reduce reliance on market forces because they allocate goods and services in an unfair manner; 3. Restrict investment in domestic industries by foreigners because they take some of the profits out of the country; 4. Encourage trade with neighboring countries; and 5. Increase the fraction of GDP devoted to consumption. How many of these measures will have a positive effect on growth?

2

Which of the following best states economists' understanding of the facts concerning the relationship between natural resources and economic growth?

Abundant domestic natural resources may help make a country rich, but even countries with few natural resources can have high standards of living.

Which of the following is consistent with the catch-up effect?

After World War II the United States had lower growth rates than war-ravaged European countries

Which of the following lists contains, in this order, natural resources, physical capital, and human capital?

For a shoe factory: leather, hand tools, the managers' knowledge of shoe making

Some poor countries appear to be falling behind rather than catching up with rich countries. Which of the following could explain the failure of a poor county to catch up?

The poor country has poorly developed property right

Other things the same, when an economy increases its saving rate

consumption falls now and production rises later.

The dictator of Belarus has recently begun to arbitrarily seize farms belonging to his political opponents, and he has given the farms to his friends. His friends don't know much about farming. The courts in Belarus have ruled that the seizures are illegal, but the dictator has ignored the rulings. Other things equal, we would expect that the growth rate in Belarus will

fall and remain lower for a long time

In medieval Europe an important technological advance was the use of the padded horse collar for plowing. Once this idea was thought of, other people used it. This illustrates that knowledge is generally a:

public good.

In some countries it is time consuming and costly to establish ownership of property. Reforms to reduce these costs would likely

raise real GDP and productivity

Average income has been stagnant for many years in

some Sub-Saharan African countries.

An understanding of the best ways to produce goods and services is called

technology.