ECON CH 9 QUIZ

Between 1980 and 1994, growth rates of real GDP per capita in sub-Saharan Africa ranged from 20% to 30%.

False

Which of the following factors have contributed to the lack of economic growth in Africa? I. political instability II. lack of spending on education and infrastructure III. malnutrition and disease

I, II, and III

Which of the following factors have contributed to the lack of economic growth in Latin America? I. lack of natural resources II. high rates of savings that led to insufficient consumption of goods and services III. political instability

III only

According to Thomas Malthus's work, which of the following is TRUE?

The amount of land per worker would eventually decline.

Research and development is what we call spending to develop and implement new technologies.

True

Which country had the lowest growth rate of real GDP per capita between 1980 and 2010?

Zimbabwe

Which of the following factors is NOT necessary for convergence between two countries?

a common language between the two countries

Ireland's recent economic growth and improving living standard are due primarily to its investment in all of the following types of physical and human infrastructure EXCEPT:

a more open election process

Diminishing returns to physical capital means that as more and more physical capital is combined with a fixed amount of human capital and a fixed technology, eventually:

additions to aggregate output or real GDP decline.

The idea that relatively poor nations should have higher rates of growth of real GDP per capita than relatively rich nations is known as the:

convergence hypothesis.

One factor frequently cited for slow growth in India until the 1990s is:

corruption among government officials.

Which of the following may lead to lower productivity because of a lack of incentives?

government subsidies

All of the following are factors that drive productivity growth EXCEPT:

growth convergence.

Economic growth is likely to entail:

higher saving.

Because of diminishing returns to capital, doubling the amount of physical capital available for one worker to use will _____ output by _____ a factor of two.

increase; less than

Which of the following is the most widely accepted measure of economic growth over time?

increases in real per capita GDP

The key factor explaining the poor growth performance in Africa is probably:

lack of domestic political stability.

Physical capital includes:

machine tools.

In 2010, China saved:

more and spent more on investment as a percentage of its GDP than the United States.

According to the text, productivity is driven by all of the following EXCEPT:

natural resources.

Productivity is equal to:

real GDP divided by the number of workers.

Which sector is responsible for most of the growth in the United States during the 1990s?

retail

Which of the following CAN properly be called a part of infrastructure?

the Golden Gate bridge

Infrastructure includes:

the water supply system.

Workers today are more productive than workers in the past because:

they now have more physical capital embodying better technology.

In general, the growth in real GDP per capita:

was greater than the growth of per capita oil consumption after 1973.

An economy initially has 200 units of physical capital per worker. Each year it increases the amount of physical capital by 10%. According to the aggregate production function for this economy, each 1% increase in physical capital per worker, holding human capital and technology constant, increases output per worker by 0.25%. (Scenario: Capital) Look at the scenario Capital. If there is no inflation and output per worker is initially $1,000, what does the estimated output per worker equal after one year?

$1,025

Suppose that real GDP per capita of the United States is $32,000 and its growth rate is 2% per year. Real GDP per capita of China is $4,000, and its annual growth rate is 7%. (Scenario: Growth Rates) Look at the scenario Growth Rates. How long will it take China's real GDP per capita to double?

10 years

In Techland, from 1980 to 2010, holding technology and human capital fixed, increasing physical capital per worker from $25,000 to $100,000 would have led to a doubling of real GDP per worker, from $40,000 to $80,000. However, not only did physical capital per worker increase from $25,000 to $100,000, but technological progress shifted the productivity curve upward so that real GDP per worker actually increased from $40,000 to $320,000. (Scenario: Technological Progress and Productivity Growth in Techland) Look at the scenario Technological Progress and Productivity Growth in Techland. What share of the growth rate of real GDP per capita was attributable to increasing physical capital per worker?

2.0%

U.S. real GDP per capita in 2010 was _____ as much per person as in 1900

758%