Chapter 16: Economic Growth and Productivity
Since 1929 about half of our economic growth was attributed to added inputs of labor and capital, the rest was due to _________ improvements.
Blank 1: productivity
Our low rate of ________ and our low rate of _________ have greatly impacted the decline of our productivity from the 1970s and its rebound.
Blank 1: saving Blank 2: investment
Immigration has always been a tremendous source of ________ to our nation.
Blank 1: strength
To attain economic growth either more inputs of labor or capital or ________ change.
Blank 1: technological
True or false: Despite the issues with our educational system, the United States has sizable world lead in many "knowledge" industries.
True
The primary source of shipping in the United States is
trucks.
Despite our low national saving rate investment has been supported by foreign investment in the United States, the attraction of foreign investment in the United States is
we pay relatively high interest rates.
How much do administrative costs add to our health care bill?
- Between 1/4 and 1/3 of the total - About $800 billion
Universal Health Care is available in:
- Canada. - Germany. - the United Kingdom.
________ live on less than $2 per day.
- One-third of the world's population - 2.4 billion people
The personal saving rate has dropped because of:
- a sense of entitlement fostered by parents who did not want their children to do without. - parent choosing not to do without themselves. - changes in attitude of consumers.
Recent changes that may help to improve our educational system include
- charter schools. - a "back to basics" movement. - the growing popularity of private schools.
Since 1929, the main sources of economic growth in the United States were
- education and training. - added labor and capital. - research and development.
In terms of health, the United States ranks near the bottom in:
- health coverage. - infant mortality. - life expectancy.
On average Americans work less than 40 hours per week because of:
- holidays. - sick days. - vacation days.
Business savings through retained earnings are used to:
- purchase additional plant and equipment. - replace the plant and equipment that has become obsolete. - replace the plant and equipment that has become worn out.
Economic growth can be slowed by:
- the influence of special interest groups. - military spending. - environmental regulations.
Important advances that lead to the industrial revolution include:
- the steam engine. - steel making. - factories.
Technological change means:
- we can produce more output from the same package of resources. - we can produce the same output with fewer resources.
The claim that Americans are among the world's hardest working people can be justified because:
- we take fewer vacations. - we work longer hours. - we often work at home "off the clock."
In order to industrialize, capital must be built up, this can be achieved by:
- working more. - consuming less.
In the United States, the permanent underclass makes up nearly _____ of our population.
10%
Because of our aging population, currently those over 65 account for
15% of the population and over 40% of our medical bills.
In the United States, the 5-day work week began in the
1940s.
Since 2005 the personal saving rate has averaged about
3.5%.
By 2035 health care will account for approximately _______ of our GDP.
30%
Today _______ Americans have health insurance.
6 out of 7
In 1900 the average work week was
60 hours and less than 2% of Americans took vacations.
Despite only having about 5% of the world's population, the United States has won over _____ of the Nobel Prizes in economics since 2000
90%
When compared to most of the rest of the industrial world
Americans work longer hours with fewer vacations.
As many as ________ million people are employed to administer health care costs
Blank 1: 3 or three
Most business saving is in the form of _________.
Blank 1: depreciation
Given the product of our educational system, it is no great surprise that the quality of our labor force has _________.
Blank 1: derided, declined, lowered, lessened, or fallen
There is virtual agreement that improving the _________ system is the key to high productivity growth and ultimately high economic growth.
Blank 1: educational or education
Less than _________ of our high school graduates can function at an eighth-grade level.
Blank 1: half
The American health care system is one of the most ________ economic sector.
Blank 1: inefficient
The baby-boom generation choose to save __________ of their incomes than their parents did. (Enter only one word in the blank.)
Blank 1: less
Beginning in the 1970s the federal budget deficits far outweighed the state and local surpluses, so the governments contribution to the gross saving rate became __________.
Blank 1: negative or minus
Most Americans receive ________ paid holidays each year.
Blank 1: ten or 10
True or false: Typically, legal immigrants tend to be more upwardly mobile.
True
A great paradox with our immigration system is that we allow students to come here for an education
and do not take advantage of their skills.
In the U.S. economy, environmental regulations
are still needed despite the drag on growth.
Immigration has always been a source of strength to the economy
but eventually then number of people allowed in the country was restricted.
On the United States, our educational system has caused the quality of the labor force to
decline since most students cannot do math without a calculator when entering high school.
In order to provide the medical care that is expected we will need to
devote a much greater slice of national output to medical care.
Productivity in the manufacturing sector has grown _______ than productivity in the service sector.
faster
Since the 1970s when we saved 7-8% of disposable income, saving among American consumers
fell to only 3.5% buy 2005.
Because of large federal budget deficits
government savings became negative as federal borrowing passed state governmental savings.
The "brain drain" refers to the phenomenon when
immigrants come who are already educated.
Since 1940 the percentage of Americans with health insurance has
increased.
Sustained economic growth and rising living standards were made possible by the
industrial revolution.
Foreign students account for _____ of STEM majors and close to ______ of STEM graduates.
nearly half, two thirds
When looking at our low productivity growth from the 1970s to 1980s and why it has picked up again
net investment fell until 1992 then it began to rise again.
After Bill Gates asked congress to issue more H-1B visas and they refused, Bill Gates
opened an office in Canada to hire those who could not get into the United States.
Economists have singled out ______ as the main cause of declines in productivity.
our low savings rate
Families living in poverty from generation to generation leads to the
permanent underclass.
Prior to 1965 our immigration policy was based on skilled labor, since then our immigration policy is based on
reunification of families.
The switch to a service economy has
slowed overall productivity growth.
When it comes to free public education
the United States was the first nation to offer free public school and lead the world but our educational system has since fallen back.
The only advanced economy without a high-speed rail system is
the United States.
