edpuzzle mod 39

A rising population causes ______________ to grow. both real GDP and real GDP per capita real GDP per capita real GDP

real GDP

A country's standard of living is determined by: real GDP per capita the type of government the availability of natural resources

real GDP per capita

A measure of how much output is available for the average person is known as: real GDP the allocative efficient combination the socially optimal output level the productive efficient combination nominal GDP nominal GDP per capita real GDP per capita

real GDP per capita

Without _____________, people spend time and effort protecting themselves from corrupt officials and arbitrarily applied laws rather than on productive activities. economic infrastructure sound governance research and development domestic savings capital deepening

sound governance

At of the making of this Edpuzzle, the GDP per capita of the United States was _______ that of the United States, one hundred years ago. surprisingly less than 8 times higher than roughly the same as twice as large

8 times higher than

When two or more economies have very similar measurements of real GDP per capita, it can concluded that their standard of living are very similar as well. False True

false

Every year: the rate of capital deepening decreases by 1% - 2%. the portion of a country's total income that is not paid in taxes or spent by households on consumption goods increases by about $1.3 trillion foreigners make their savings available to American borrowers.

foreigners make their savings available to American borrowers.

When economic growth is based on _________, it increases living standards in developed and developing countries alike. a fair regulatory system increases in productivity sound governance increases in population appropriate fiscal policy

increases in productivity

An abundance of natural resources does not guarantee that an economy will thrive. True False

true

Being "rich in natural resources" cannot explain a continually growing real GDP. False True

true

Economists feel there is a strong enough correlation between real GDP per capita and other important quality enough measurements, to validate using real GDP per capita as an indicator of overall standard of living. False True

true

Over time, growth in real GDP per capita, usually indicates growth in everyone's incomes, including the incomes of the very poor. False True

true

Productivity not only explains why we have more money to buy stuff, but also: why life expectancy has declined sharply. why we have more stuff to buy. how corporate profits have increased ten-fold since the 1980's.

why we have more stuff to buy.

Productivity not only explains why we have more money to buy stuff, but also: why we have more stuff to buy. why life expectancy has declined sharply. how corporate profits have increased ten-fold since the 1980's.

why we have more stuff to buy.

The amount of capital that is used up each year is: $1.6 billion capital deepening depreciation $323 million recycled as best as possible to achieve sustainable economic development.

depreciation

The portion of a country's total income that is not paid in taxes or spent by households on consumption goods: capital stock 13% annually real GDP per capita domestic savings $12.6 trillion

domestic savings

Business investment is largely funded with: tax breaks. retained profits by firms. government subsidies. domestic savings.

domestic savings.

Investing also includes spending on: military defense. the intermediate goods that are used to produce final goods and services. economic infrastructure.

economic infrastructure.

Physical capital, such as communication systems and power grids, that provide a basic foundation that users share for many types of economic activities is knowns as: an economy's standard of living. real GDP per capita. capital deepening. economic infrastructure. capital stock.

economic infrastructure.

In a capitalistic economy, ________ bring(s) together ideas, people, and physical capital in order to produce valuable products and services. entrepreneurs the government

entrepreneurs

In almost all years, U.S. investment ________ depreciation. exceeds is less than equals

exceeds

Newly available natural resources are a key determinant of long-term economic growth. True False

false

There is a very strong correlation between the countries with the 10 highest real GDP per capita measurements and the top 10 scoring countries on the Human Development Index. True False

false

The pace of technological change depends heavily on: consumer demand. government subsidies. research and development expenditures. real GDP per capita. the amount of depreciation per year. economic growth. changes in population.

research and development expenditures.

Activities to discover or improve products or procedures is known as: capital deepening. economic infrastructure acquisition. research and development. depreciation.

research and development.

In the context of macroeconomics, investment is primarily: responsible for increases in the economy's standard of living. spending on physical capital which helps the economy grow. the purchases of stocks and corporate bonds which funds research and development by firms.

spending on physical capital which helps the economy grow.

The total amount of physical capital in the country is known as: the capital stock capital deepening real GDP per capita economic infrastructure

the capital stock

When the government spends more than it collects in taxes: the government must compete with firms for the pool of available savings. it means the economy is experiencing a downturn in the business cycle. it incurs budget surpluses. it is funding a war.

the government must compete with firms for the pool of available savings.

At of the making of this Edpuzzle, the GDP per capita of the United States was _______ that of Bangladesh. twice as large 18 times as large as roughly the same as surprisingly less than

18 times as large as

GDP per capita is: the current output of the economy x current year's prices. the output of the economy produced by unmanned physical capital. GDP of the country divided by its square miles. GDP of the country divided by its population.

GDP of the country divided by its population.

The principle that no person is above the law. Eminent domain Rule of law Article 2

Rule of law

The principle that no person is above the law. Sound governance Equality of outcome "Justice for all" Constitutional law Rule of law

Rule of law

__________ takes the same amount of resources and organizes them in a way to produce more output. Inventory investments Capital deepening Technology Productivity

Technology

________ create(s) incentives for entrepreneurs, workers, investors, and property owners to contribute to economic growth. Increases in productivity Improvements in technology The protections of a fair legal system Capital deepening

The protections of a fair legal system

_____________ create(s) incentives for for entrepreneurs, workers, investors, and property owners to contribute to economic growth. Improvements in technology The protections of a fair legal system Capital deepening Increases in productivity A fair tax system

The protections of a fair legal system

Which of the following is the formula for determining labor productivity? Total output of goods and services ÷ total population. (Real GDP of this year - real GDP of last year) ÷ population Total output of goods and services ÷ total number of hours it took to produce. Total output of goods and services x total number of hours it took to produce.

Total output of goods and services ÷ total number of hours it took to produce.

Investment and the expansion of the capital stock is enhanced by: depreciation exceeding investment spending a low savings rate large and repeated government budget deficits. a high savings rate

a high savings rate

More physical capital increases your productive capacity: but only if the rate of depreciation is greater than the rate of new investment. but this comes at a high cost to society as consumers much spending a great deal to justify the firm's investments. but it also "eats up" some of that productive capacity.

but it also "eats up" some of that productive capacity.

If taxes are not collected, or if they are siphoned off by corrupt public officials: people will need to spend time and effort protecting themselves from corrupt officials and arbitrarily applied laws rather than on productive activities. capital deepening will increase at a much faster rate than is normal for the economy. infrastructure needs will go unfulfilled and productivity will suffer.

infrastructure needs will go unfulfilled and productivity will suffer.

An increase in a country's capital per worker: depends exclusively on sustained low interest rates. is known as capital deepening. is impossible to do without increasing the nation's national debt. is more easily achieved in times of low population growth.

is known as capital deepening.

One of the problems with real GDP per capita is that: it is measured in U.S. dollars regardless of what country is being examined. it is only typically measured annually, where as daily events can affect the happiness of the economy's citizens. it "misses" the distribution of income.

it "misses" the distribution of income.

Economists that study economic growth focus on one key factor: labor productivity. population growth. new discoveries of natural resources. business investment.

labor productivity.

More and better tools: have unfortunately, had little effect on worker productivity. make workers more productive. make workers less productive.

make workers more productive.

For a given amount of depreciation, more investment spending means: substantially higher returns on those investments. an increase in the opportunity cost of borrowing funds to invest. more growth in the capital stock.

more growth in the capital stock.

For real GDP per capita to rise, the average person in the economy: must consume fewer goods and services. must live longer. must produce more output.

must produce more output.