Econ 102 Chapter 7
If real GDP is $13,000 billion and aggregate hours are 270 billion, labor productivity equals
$48 per hour
Slowdonia's current growth rate of real GDP per person is 1 percent a year. Approximately how long will it take to double real GDP per person?
100 years
Slowdonia's current growth rate of real GDP per person is 2 percent a year. How long will it take to double real GDP per person?
35 years
Labor productivity, real GDP per labor hour, increases if
A) there is an increase in the accumulation of human capital. B) new technologies are continuously discovered. C) saving and investment cause an increase in the quantity of capital per worker. D) All of the above answers are correct. D is the answer you degenerates
Real GDP grows when
I. the quantities of the factors of production grow. II. persistent advances in technology make factors of production increasingly productive. III. human capital grows. answer is all of them dumb a*s
in 2016, Armenia had a real GDP of approximately $4.21 billion and a population of 2.98 million. In 2017, real GDP was $4.59 billion and population was 2.97 million. From 2016 to 2017, Armenia's standard of living
Increased
If the nation's capital stock increases so that workers become more productive, the
demand for labor will increase.
All of the following would increase the growth rate of the economy EXCEPT
discouraging international trade.
The Rule of 70 is used to
estimate how long it will take the level of any variable to double.
A central proposition of the new growth theory is that
knowledge is not subject to diminishing returns.
Moving along the aggregate production function shows the relationship between ________, holding all else constant.
labor input and real GDP
If capital per worker rises
labor productivity increases
If the quantity of capital per worker in the economy increases
labor productivity increases.
A decrease in population shifts the
labor supply curve leftward.
The real wage rate will fall if the
labor supply curve shifts rightward and the labor demand curve does not shift
Human capital is
peoples knowledge and skills
All of the following contribute to labor productivity growth EXCEPT
population growth
The Industrial Revolution in England in large was the result of
technological innovations encouraged by the patent system.
New growth theory proposes that real GDP per person grows because of ________ and that growth ________.
the pursuit of profit; can persist indefinitely
Which of the following is NOT an important factor affecting growth in labor productivity?
the speed with which prices fall
An advance in technology increases the productivity of labor. As a result, the nation's production function shifts ________ and the ________ labor curve shifts rightward.
upward; demand for
Graphing questions:
24-29
Suppose a nation's population grows by 2 percent and, at the same time, its GDP grows by 5 percent. Approximately how fast will real GDP per person increase?
3 percent per year
Using the Rule of 70, if the country of Huttodom's current growth rate of real GDP per person was 10 percent a year, how long would it take the country's real GDP per person to double?
7 years
In 2011, Armenia had a real GDP of $4.21 billion and a population of 2.98 million. In 2012, real GDP was $4.59 billion and population was 2.97 million. What was Armenia's economic growth rate from 2011 to 2012?
9.0%
According to the Economic Times (09/2012), Standard & Poor's forecast for India's GDP growth rate was cut by 1 percentage point to 5.5 percent as the entire Asia Pacific region feels the pressure of ongoing economic uncertainty. India has averaged 7 per cent growth in GDP since 1997. Which of the following is TRUE?
India's PPF has been shifting rightward since 1997.
The aggregate production function is graphed as
an upward sloping line that becomes flatter as the quantity of labor increases.
The assumption that population growth will lead to a fall in real GDP per person rate back to subsistence level is
associated with Malthusians.
Classical growth theory states that
growth is followed by increases in the population, eventually leaving real GDP per person unchanged.
A worker's stock of knowledge is known as
human capital
An increase in saving that leads to more capital accumulation ________ labor productivity.
increases
Which of the following does NOT increase labor productivity?
increases in aggregate hours
Potential GDP per labor hour can increase due to
increases in labor productivity.
An increase in education and training
increases labour productivity
Suppose real GDP for a country is $13 trillion in 2015, $14 trillion in 2016, $15 trillion in 2017, and $16 trillion in 2018. Over this time period, the real GDP growth rate is
increasing
The more education that workers have, the ________ is their human capital and the ________ is their productivity.
larger; higher
As labor increases, there is a
movement along the aggregate production function and real GDP will increase less with each additional increase in labor.
The figure above shows the U.S. production function. From 1986 to 2008 the United States experienced major advances in technology as well as an increase in the working-age population. The combined effect can best be shown by a
movement from point W to point Z.
Which of the following is NOT associated with the new growth theory?
natural resources
Which growth theory predicts perpetual growth?
new growth theory
In the labor market, an increase in labor productivity ________ the real wage rate and ________ the level of employment.
raises; increases
Neoclassical growth theory proposes that
real GDP per person grows because technological change increases profit opportunities.
The quantity of labor supplied depends on the
real wage rate not the money wage rate.
An advance in technology will
shift the production function upward.
When labor productivity increases, the demand for labor curve ________ and the supply of labor curve ________.
shifts rightward; does not shift