Chapter 7 Macro Questions

a nonrenewable natural resource

Copper is an example of

our productivity because our income is equal to what we produce

our standard of living is most closely related to

the property whereby the benefit from an extra unit of an input declines as the quantity of the input increases

Diminishing Returns

Real GDP per person

A reasonable measure of the standard of living in a country is

the property whereby countries that start off poor tend to grow more rapidly than countries that start off rich

Catch up effect

Labor

For a given level of technology, we should expect an increase in labor productivity within a nation when there is an increase in each of the following except

The knowledge and skills that workers acquire through education, training and experience

Human Capital

3.1%

If real GDP per person in 2009 is $18,073 and real GDP per person in 2010 is $18,635 hat is the growth rate of real output over this period?

human capital

Madelyn goes to college and reads many books while at school. Her education increases which of the following factors of production?

they save and invest an usually high percentage of their GDP

Many East Asian countries are growing very quickly because

the inputs into the production of goods ad services that are provided by nature, such as land, rivers and mineral deposits

Natural Resources

It may be harder for it to grow quickly because of the diminishing returns to capital.

Once a country is wealthy

the stock of equipment and structures that are used to produce goods and services

Physical Capital

the quantity of goods and services produced from each unit of labor input

Productivity

society's understanding of the best ways to produce goods and services

Technological Knowledge

It has the potential to grow relatively quickly due to the "catch-up effect."

When a nation has very little GDP per person

A farmer discovers that it is better to plant in the spring rather then in the fall

Which of the following describes an increase in technological knowledge

Countries have great variance in both the level and growth rate of GDP per person; thus; poor countries can become relatively rich over time

Which of the following statements are true

Current consumption

the opportunity cost of growth is a reduction in

Toyota buys stock in ford, and ford uses the proceeds to build a new plant in Michigan

which is an example of a of foreign portfolio investment

Susan pays her college tuition

which of the following expenditures to enhance productivity is most likely to emit positive externality?

increase restrictions on the importing of Japanese automobiles and electronics eliminate civil war

which of the following government policies is least likely to increase growth in Africa