Macro Chapter Eight

Economists define and measure economic growth as ______.

An increase in Real GDP per capita over some period of time. An increase in Real GDP over some period of time.

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

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

The five factors that together appear to explain changes in productivity growth rate are technological advance, quantity of_______per worker, education and training, economies of scale, and_______allocation.

Capital Resource.

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.

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

Demand

Select the five factors that together appear to explain changes in productivity growth rate.

Economies of scale Technological advance Education and training Quantity of capital Resource allocation.

What are the growth-promoting institutional structures?

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

True or false: Countries that experienced growth more recently will never be able to escape poverty.

False.

Economic growth is made possible by the ______.

Four supply factors that shift the production possibilities curve outward.

Efficiency factor is when an economy must achieve economic efficiency as well as_______ _______to reach its full production.

Full employment.

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

Higher standard of living.

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.

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

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

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

Leader.

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

Outward shifting of.

Real GDP per capita means GDP ______.

Per Person.

Since at least 1995, the majority of increases in U.S. real GDP are from

Productivity Growth.

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 statements best summarizes the real economic growth per capita in the United States between 1950 and 2018?

Real GDP per capita rose nearly fourfold.

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

Real GDP per capita.

Which of the following statements best summarizes the growth in real GDP in the United States between 1950 and 2018?

Real GDP rose more than eight fold.

More labor inputs can explain _________ in real GDP over the last 65 years or so.

Some of the increases.

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.

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

Supply Demand Efficiency.

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

Supply.

Rearrange the following contributors to the growth of productivity in descending order of their quantitative importance: economies of scale, quantity of capital per worker, improved resource allocation, education and training, and technological advance.

Technological advance, quantity of capital, education and training, economies of scale, and improved resource allocation.

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.

Today's poor countries can catch up to or even pass today's rich leader countries by ______.

adopting existing technology from rich leader countries.

Reductions in per-unit production costs that result from increases in output levels lead to_______ of _______.

economies of scale.

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

enable an economy to expand its potential GDP.

Economic growth is made possible due to ______ that shift the production possibilities curve outward.

factors of production

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

false.

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

free; competitive.

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

growth.

Human capital refers to ______.

knowledge and skills that make a worker productive.

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.

Human capital refers to ______.

the improvement in labor created by education and knowledge that is embodied in the work force.