Econ Chapter 8

Which of the following summarize how the social-cultural-political environment of the United States has encouraged economic growth?

A competitive market system No social or moral taboos on production

What is potentially the result of overcapacity and the stalling of technological progress?

A decline in productivity growth rates

Economic growth is calculated as ______.

A percentage rate of growth per quarter or per year

Which of the following are used by economists to define and measure economic growth?

An increase in real GDP occurring over some time period An increase in real GDP per capita occurring over some time period

Economists define and measure economic growth as ______.

An increase in real GDP per capita over some period of time

Labor productivity significantly rises as the firm sells more units of a product, consequently resulting in lower per-unit cost of production because workers ______.

Can specialize and the firm can spread product costs over greater output

When productivity is improved through products and services that can satisfy large numbers of consumers at the same time, it is called simultaneous

Consumption

What are leader countries?

Countries that develop and use the most advanced technologies

Modern economic growth has significantly increased the standard of living as well as _____, social, and political arrangements

Cultural

Unlike economists who argue in favor of rapid economic growth, economists who argue against it see rapid economic growth as ______.

Damaging

The purchase of the economy's expanding goods and services by households, businesses, and the government is known as the ______ factor.

Demand

The determinants that directly affect economic growth can be grouped into which of the following categories?

Demand Supply Efficiency

Reductions in per-unit production costs that result from increases in output levels lead to _____ _____

Economies of scale

Literacy and widespread _____ is the growth-promoting institutional structure that contributes to a productive labor force.

Education

Economic growth is realized when the production possibilities curve shifts because of changes in which of the following factors?

Efficiency Demand

give a strong financial incentive to inventors and authors to invent and create.

Efficiency Demand

Which of the following are growth-promoting institutional structures?

Efficient financial institutions Competitive market system. Patents and copyrights Strong property rights Free trade

The four supply factors that constitute changes in physical and technical agents of production ______.

Enable an economy to expand its potential GDP

True or false: Countries that experienced economic growth earlier than other countries have lower average incomes today.

False

The growth-promoting institutional structures that involve banks and the stock and bond markets are called efficient _____ institutions

Financial

The growth-promoting institutional structures that involve banks and the stock and bond markets are called ______.

Financial institutions

Which of the following institutional structures promote and sustain modern economic growth?

Financial institutions that channel the savings generated by households toward businesses, entrepreneurs and inventors Widespread education for the workforce that will promote new technology innovations and implementation Strong property rights that give citizens the right to own investments and property Patents and copyrights giving inventors and authors the exclusive right to market and sell their creations for a period of time

Economic growth is made possible by the ______.

Four supply factors that shift the production possibilities curve outward

The growth-promoting institutional structure that involves allowing countries to specialize in different types of output that can be produced most efficiently is called ______.

Free trade

Which growth-promoting institutional structure allows countries to specialize so that different types of output can be produced in the countries where they can be made most efficiently?

Free trade

Strong property rights, ______ trade, patents and ______ market systems are all growth-promoting institutional structures.

Free; competitive

Efficiency factor is when an economy must achieve economic efficiency as well as ______ to reach its full production potential. Multiple choice question.

Full employment

An economy that is experiencing economic ______ is better able to meet people's wants and resolve socioeconomic problems.

Growth

Which of the following are the types of firms to which Apple and Dell belong?

High-growth Start-up

Economic growth provides society ______.

Higher living standards greater material abundance more goods and services

Those countries which experienced modern economic growth earlier than other countries now have significantly ______.

Higher standard of living

A nation's real GDP depends on labor ______ multiplied by labor ______.

Hours; productivity

Which of the following cannot properly be called a part of infrastructure?

Human capital

Over time, when workers move from low-productivity to high-productivity employment, it is called ______.

Improved resource allocation

Which of the following factors of productivity growth account for workers moving over time from low-productivity to high-productivity employment?

Improved resource allocation

Other than a higher standard of living and more innovations, which of the following are true of the impacts of modern economic growth in industrialized nations?

Increase in democracies Increased leisure time and arts Elimination of archaic social norms

A nation's economic growth from one year to the next depends on its ______.

Increase in labor inputs and increase in labor productivity

If the amount of capital per worker _____, labor productivity will increase.

Increases

What are the two supply-side elements of real GDP?

Increases in labor productivity Increases in hours worked

Increased capital is important to productivity growth because the ______ in the quantity and quality of capital will make workers ______ productive.

Increases; more

A situation in which a given percentage increase in the amount of inputs a firm uses leads to an even larger percentage increase in the amount of output the firm produces is called _____ returns

Increasing

A situation in which a given percentage increase in the amount of inputs a firm uses leads to an even larger percentage increase in the amount of output the firm produces is called ______.

Increasing returns

Computers, fiber-optic cable, wireless technology, and the Internet represent advances in a special type of technology known as _____technology.

Information

Which of the following comprise technological advancement?

Innovative production techniques New forms of business organization New managerial methods

Which of the following began as start-up firms in technology?

Intel PayPal Cisco Systems

Which of these explain why growth is an important economic goal?

It increases real wages and incomes. It increases a society's ability to resolve socioeconomic problems. It increases standards of living.

Human capital refers to ______.

Knowledge and skills that make a worker productive

An increase in productivity growth is important because real output, real income and real wages are linked to ______.

Labor productivity

In any year, a nation's real GDP depends on hours of work multiplied by ______.

Labor productivity

Output per hour of work is the definition of:

Labor productivity

The two main supply-side elements that contribute to changes in real GDP are increases in hours worked and increases in ______.

Labor productivity

The fraction of the working-age population that is in the labor force is called the ______ rate.

Labor-force participation

Countries that develop and use the most advanced technologies, which then became available to follower countries, are known as _____ countries.

Leader

One of the consequences of a no-growth policy is that it ______.

Limits growth in poor nations

Increases in capital are important to productivity growth because increases in the quantity and quality of capital ______.

Make workers more productive

The core element of the productivity speedup between 1995 and 2010 was an explosion of entrepreneurship and innovation based on ______.

Microchip

Identify the sources of increasing returns for firms.

More specialized inputs Simultaneous consumption Spreading of development costs Network effects Learning by doing

A product that increases in value as more people use it is a product that benefits from _____ effects

Network

The demand factor involves households, businesses, and government purchasing the economy's expanding output of goods and services so that there will be ______.

No unplanned increase in inventories and resources will remain fully employed

Economic growth made possible by the four supply factors is illustrated by the ______ the production possibilities curve.

Outward shifting of

Which of the following are some possible reasons for the slowdown in productivity growth rates starting in 2010?

Overcapacity Recent products like Internet apps that are free and do not generate a measurable effect on GDP Accumulation of high debt levels

_____ and _____ give a strong financial incentive to inventors and authors to invent and create.

Patents Copyrights

The growth-promoting institutional structure that involves giving inventors and authors the exclusive right to market and sell their creations is ______.

Patents and copyright

Real GDP per capita means GDP:

Per person

The growth of real GDP is a useful measure for the expansion of ______ preeminence, while the real GDP per capita is a useful measure for ______ standards.

Political; living

What do antigrowth economists cite as evidence in favor of their argument that growth is undesirable?

Pollution Materialism Poverty

Economic growth can be illustrated when the demand factor and the efficiency factor shift the production _____ curve outward

Possibilities

Public investment in U.S. infrastructure like roads and bridges promotes _____ investment in new factories and retail stores.

Private

The competitive market system tends to drive the economy toward _____ efficiency and _____ efficiency.

Productive; Allocative

The growth-promoting institutional structure that involves the ability of citizens to own land, houses and businesses is called private rights

Property

Which of the following are arguments against rapid economic growth?

Rapid economic growth results in pollution, global warming, and other environmental problems. Rapid economic growth has not solved sociological problems like poverty and homelessness. Rapid economic growth is unsustainable due to the earth's finite resources.

Real GDP divided by the size of the population is called ______.

Real GDP per capita

The best economic growth measurement to compare living standards is ______.

Real GDP per capita

Increasing productivity leads to improved standards of living by increasing ______.

Real hourly earnings

Ideally, a nation acquires funds for investment spending on plant and equipment by ______ income.

Saving

Sources of funds for investment spending in plant and equipment are ______.

Savings by households, governments, and foreigners

Streaming movies to customers is an example of ______.

Simultaneous consumption

When a firm purchases a customized inventory management system, it is ______.

Specializing its inputs

When firms divide high product development costs over greater output, they are ______

Spreading development costs

Economists pay attention to small changes in economic growth because small changes in economic growth can make a big difference in the living _____ of a country.

Standards

A new firm focused on creating and introducing a particular new product or employing a new production or distribution method is called a(n) _____ firm

Start-up

A new firm focused on creating and introducing a particular new product or employing a new production or distribution method is called a ______.

Start-up firm

Because people will not invest if they believe that thieves, bandits, or a rapacious and tyrannical government will steal their investments or their expected returns, ______ are important.

Strong property rights

Which of the following allow the economy to achieve a higher rate of economic growth?

Stronger productivity growth and heightened global competition

The six "determinants" of economic growth are grouped into three categories: one demand factor, four _____ factors, and one efficiency factor.

Supply

Which of the following factors of productivity growth helps to promote the development of new forms of business organization?

Technological advance

The supply factors that are part of the "determinants" of economic growth include increasing the quality and quantity of natural and human resources, increasing the stock of capital, and improvements in .

Technology

Which of the following helps explain why the growth rate in the United States has been positive during the 1900s?

The increase in labor productivity

Why do economists pay so much attention to small changes in the rate of economic growth?

These changes have large effects on the volume of output.

What is the primary reason why a firm would use specialized inputs?

To improve capital and worker productivity

True or false: The competitive market system tends to drive the economy toward productive and allocative efficiency.

True

The efficiency factor involves both productive and allocative efficiency, which means in order to reach its full production potential an economy must ______.

Use its resources in the least costly way to produce the specific mix of goods that maximizes people's well-being

Products that can be simultaneously consumed can be made available to thousands or even millions of buyers at what cost?

Very low cost

Which of the following growth-promoting institutional structures creates a highly educated workforce?

Widespread education

Select from the following those that contributed to the spectacular advancement in information technology.

Wireless technology The Internet The computer Fiber-optic cable

Workers today are more productive than workers in the past because ______.

Workers now have more physical capital embodying better technology with which to work

The fraction of the ______ population that is in the labor force is called the labor-force participation rat

Working-age

Economic growth is normally calculated as a percentage rate of growth per quarter or per

Year