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