ECO 101 Chapter 27/28 Quiz help
A business that pays for its workers to attend a technical college is increasing its:
human capital
The most important factor that contributed to China's rapid growth at the end of the 1970s and early 1980s was:
institutional reforms
What describes the growth process from its ultimate to its immediate causes?
institutions - incentives - factors of production - real GDP per capita
A legal system that helps raise a nation's productivity is one that:
makes it easier for people to engage in contracts and to establish property rights
Property rights are important institutions for encouraging investment because:
people won't invest if they feel their property is at risk and that they may not realize a return on the investment
When economists speak of "long-run economic growth," they mean increasing the:
per capita read GDP of a country
Countries with high GDP per capita tend to have a lot of
physical capital, human capital, and technological knowledge per worker
Governments can play a role in supporting the production of new ideas by:
protecting intellectual property
One of the best explanations for why some countries are rich and others are poor is that:
rich countries organize their factors of production more efficiently than poor countries do
Physical capital is the:
stock of tools, including machines, structures, and equipment used to produce output
Which are immediate causes of the wealth of nations? *property rights/honest gov't *customs/practices/social norms *institutions/incentives *technical knowledge/human capital
technical knowledge/human capital
Economic growth refers to the growth rate of:
GDP per capita
Why does South Korea have a higher level of read GDP per capita than North Korea
South Korea has a better system of incentives than North Korea does
Patents increase the incentives to R&D new products but also increase monopolistic competition once the products are created: (T/F)
True
which is not an institution that leads to sustained long-term economic growth? *dependable legal system *stable political system *more equal income distribution *honest government
a more equal income distribution
Which is not an example of physical capital? *tractor *share of Caterpillar, Inc. stock *cell phone *computer
a share of Caterpillar stock
The key reason for China's growth miracle beginning in the late 1970s was:
the assignment of private property rights
Diminishing returns to capital implies that ----- diminishes as more capital is added
the marginal product of capital