MACRO: long-run economic growth

If real GDP doubles in 12 years, its average annual growth rate is approximately: 6% 5% 4% 3%.

6%

Real GDP per capita in the United States increased almost _____ times between 1900 and 2010. 2 3 8 10

8

Diminishing returns to physical capital implies that when the human capital per worker and the state of technology remain fixed, each successive increase in physical capital leads to _____ productivity. a smaller increase in a larger increase in a decrease in negative

a smaller increase in

Economists say that long-run economic growth is almost entirely due to: rising productivity population growth a democratically elected government a balanced budget.

rising productivity

Roads, telephone lines, power facilities, and schools are examples of a nation's: technostructure infrastructure physiostructure sociostructure.

infrastructure

Natural resources are: more important determinants of productivity today than ever before the reason behind the fast development of countries like Japan the reason behind the slow development of countries like Nigeria less reliable indicators of productivity today than they were a century ago.

less reliable indicators of productivity today than they were a century ago.

The convergence hypothesis states that international differences in real GDP per capita tend to _____ over time. diverge fluctuate remain constant narrow

narrow

Since the 1960s, nations like South Korea have been a part of the so-called East Asian economic miracle because: high rates of human capital growth have offset slow savings rates of high rates of national savings that offset the slower rate of technological progress of high savings rates, greater quantities of physical capital per worker, and slower growth of human capital of the combination of rapid technological progress, high savings rates, and rapid improvement in human capital.

of the combination of rapid technological progress, high savings rates, and rapid improvement in human capital.

The main source of Kuwait's wealth is _____, while the main source of Germany's wealth is_____ . oil; manufacturing manufacturing; oil tourism; manufacturing information technology; tourism

oil; manufacturing

The standard of living in a country can be best measured by: nominal GDP per capita real GDP per capita the productivity growth rate the business cycles.

real GDP per capita

The aggregate production function does NOT depend on: the quantity of physical capital per worker human capital per worker the state of technology the amount of natural resources.

the amount of natural resources.

Human capital refers to: output per worker the education and knowledge embodied in the workforce society's investment in capital goods people working with capital goods.

the education and knowledge embodied in the workforce