long-run economic growth

what is an example of human capital

a worker gets a college degrees

a country's rate of economic growth is important because

an economy that grows too slowly fails to raise the living standards of its citizens

an economy that does not experience increases in technological progress

can experience economic growth by increasing capital, however, this will eventually stagnate and the economy will not continue to grow

long-run growth in GDP is determined by

capital, labor productivity

globalization has made it _________________ for developing countries to get investment funds and technology

easier

most of the poor countries experience slow growth because of all the following reasons except

excellent public health and education

a country's real GDP per capita equals the country's real GDP divided its adult population. true or false

false

a country's standard of living is measured by its real GDP. true or false

false

in the long run, economic growth occurs when a country's real GDP increases. true or false

false

increases in real GDP per capita do not increase the amount of goods and services available to a country's citizens. true or false

false

increases in real GDP per capita mean people will have a lower portion of leisure time over the course of their lives. true or false

false

sustain economic growth has occurred throughout human history. true or false

false

the government policy that does not increase economic growth is

foreign trade policy that favors imposing a high tariff on imported high-tech goods

why do economic growth rates matter

high growth rates coincide with improved living standards, high levels of sustained economic growth reduce infant mortality, when a country sustains high growth rates, life expectancy at birth increases.

technological progress is affected by

investment in capital, private property rights, entrepreneurship, new software developments

technological change is __________________ for economic growth than capital

more important

capital can be differentiated between physical capital and human capital. human capital is

the knowledge and skills workers acquire from education and training or from their life experiences

the two key factors that cause labor productivity to increase over time are

the quantity of capital per hour worked and the level of technology

when examining economic growth rates throughout history,

the world experienced little to no growth until the industrial revolution, after which some economies began to experience real economic growth

a country's standard of living depends on its ability to produce goods and services. true or false

true

a small but consistent economic growth rate can greatly improve a country's standard of living in the long run. true or false

true

increases in real GDP per capita increase life expectancy at birth. true or false

true

real GDP per capita is not adjusted for pollution, crime, or changes in the quantity of services. true or false

true

the country of Cy has a small quantity of capital available to its workers, and the country Herky has a large quantity of capital available to its workers. therefore, if both countries experience an identical increase in the quantity of capital available to workers, Cy's labor productivity will improve more than Herky's labor productivity will. true or false

true