ECON 1202 Chapter 9 Quiz

If real GDP doubles in 12 years, its average annual growth rate is approximately: - 4%. - 3%. - 5%. - 6%.

6%

If there is an increase in physical capital per worker (all other factors remaining unchanged), it is BEST indicated by a move from: - C to B. - B to C. - A to B. - B to A.

A to B

If there is a significant increase in human capital per worker (all other factors remaining unchanged), it is BEST indicated by a move from: - C to B. - B to C - B to A. - A to B.

B to C

In recent times we have seen newly developing economies grow at faster growth rates than established industrial economies, this phenomena is sometimes called: - Convergence - Mustard - Globalization - Industrial Integral Development

Convergence

Why would you expect real GDP per capita in California and Pennsylvania to exhibit convergence but not in California and Baja California, a state of Mexico that borders the United States? Consider what changes would allow California and Baja California to converge, then determine which of the following best describes the correct answer. - According to the conditional convergence hypothesis, you should not expect real GDP per capita in California and Pennsylvania to converge. - It is more likely that the factors that affect growth will be equal in California and Pennsylvania but not equal between California and Baja California. - According to the conditional convergence hypothesis, you should expect real GDP per capita in California and Baja California to converge.

It is more likely that the factors that affect growth will be equal in California and Pennsylvania but not equal between California and Baja California.

Which of the following U.S. policies and institutions may negatively influence U.S. long-run economic growth? - The country has been politically stable, and its laws and institutions protect private property. - The government's persistently large borrowing may make financing additional improvements in infrastructure and education (a phenomenon known as "crowding out"), consequently slowing economic growth. - The economy has attracted significant savings, both domestic and foreign, that have allowed investment spending to spur the growth of the capital stock and fund research and development. - The government has directly supported economic growth through its support of public education as well as research and development.

The government's persistently large borrowing may make financing additional improvements in infrastructure and education (a phenomenon known as "crowding out"), consequently slowing economic growth.

Diminishing returns to physical capital implies that, when the human capital per worker and the state of technology remain fixed, each successive increase in physical capital leads to _____ productivity. - negative - a larger increase in - a decrease in - a smaller increase in

a smaller increase in

One factor frequently cited for slow growth in India until the 1990s is: - corruption among government officials. - reliance on the drug trade. - too little government intervention in the economy. - dependence of foreign capital flows.

corruption among government officials.

During the latter half of the twentieth century, the Soviet Union made more physical capital available to its workers, but this increase resulted in successively smaller increases in productivity. This example illustrates: - a declining standard of living. - diminishing returns to physical capital. - diminishing returns to human capital - a decline in technology

diminishing returns to physical capital

The Bureau of Labor Statistics (BLS) regularly releases the "Productivity and Costs" report for the previous month. Which sector had the largest percent increase in productivity from the same quarter a year ago? - nonfarm business - business - nondurable manufacturing - durable manufacturing

durable manufacturing

When the government invests in building roads, ports, and a reliable power grid, it is investing in a nation's: - technological progress. - private property. - infrastructure. - human capital.

infrastructure

Which one of the following factors do we consider to be central (the seed) for economic growth to occur? - Technology - Labor productivity - Physical capital - Human capital

labor productivity