Econ Chapter 10

The growth rate of real GDP per capita is best captured by subtracting the percentage changes in:

both prices and population from the nominal GDP growth rate.

Human capital refers to the:

skills, experience, and natural talent that determine the productivity of workers.

In a given year the nominal growth rate is 5% with inflation and population growth rates of 1.2% and 3.8% respectively, then real growth rate of GDP per capita is:

0.0%

We can estimate that if a country grows at 7 percent per year, it will double its real GDP per capita in:

10 years

The productivity of workers can depend upon which of the following?

All of these are determinants of productivity.

For a country to acquire more physical capital it:

All of these are true.

If a country has a high level of income, it likely has:

All of these are true.

Protecting property rights:

All of these are true.

An example of physical capital is:

a tractor.

According to the rule of 70, a country will double its real GDP per capita in 10 years if it:

experiences a 7 percent growth rate in per-capita GDP.

Education and training are ways to build:

human capital.

Ensuring that high-quality public education is freely available to all children is one of the most important ways that a country can:

increase its stock of human capital.

The only way that the family can consume more and enjoy a higher standard of living is to:

increase the amount each person produces.

Estimations calculated using the rule of 70:

make it easier to appreciate how small differences in growth rates can add up to huge differences in income over time.

Economic growth means:

more production of goods and services.

When people are educated, they become:

more productive to society, because they have more skills to apply to a job.

Productivity is generally measured as:

output per worker.

Real income per person was the same until:

the 1800s, when the Industrial Revolution caused it to grow.

Where does the money for investment in physical capital come from? It largely comes from:

the savings of ordinary households.

Physical capital is:

the stock of equipment and structures that allow for the production of goods and services.