Chapter 7 - Economic Growth

Country Alpha and Country Beta initially have the same real GDP per capita. Country Alpha experiences no economic growth, while Country Beta grows at a sustained rate of 5 percent. In 14 years, Country Alpha's GDP will be approximately _________ that of Country Beta.

1/2

A country will roughly double its GDP in twenty years if its annual growth rate is:

3.5 percent

In macroeconomics, the connection from inputs to outputs for the entire economy is called _______________.

Aggregate production function

A nation's prosperity is sometimes measured in terms of ___________.

GDP per capita

An economy's rate of productivity growth is closely linked to the growth rate of its ______________, although the two aren't identical.

GDP per capita

____________ is a term which refers to the widespread use of power-driven machinery and the economic and social changes that resulted in the first half of the 1800s.

Industrial Revolution

Increased investment alone will guarantee economic growth.

This is a false statement, because economic growth hinges on the quality and type of investment as well as the human capital and improvements in technology.

Which of the following factors contribute to economic growth? a decrease in the quantity of labor due to emigration the discovery of new oil reserves a decline in the stock of physical capital a decrease in the productivity of labor

discovery of new oil reserves

Country Able and Country Baker initially have the same real GDP per capita. Country Able experiences no economic growth, while Country Baker grows at a sustained rate of 7 percent. In 12 years, Country Baker's GDP will be approximately ___________ that of Country Able.

double

Some recent economic research has suggested that African countries' economic growth may have been limited by __________________ .

geography and climate

Which of the following factors contribute to economic growth? - an increase in the standard of living - an increase in the proportion of the population that is college educated - a decrease in the productivity of labor - an increase in the average wage rate paid to workers

increase in proportion that's college educated

Since the late 1950s, economists have performed "growth accounting" studies in the United States. These have determined that ________________ is typically the most important contributor to U.S. economic growth.

technology

Which of the following is unlikely to affect the rate of economic growth?

the level of government spending