Chapter 7 Production and Growth - Macro
real income per person
A reasonable measure of the standard of living in a country is
they save and invest an unusually high percentage of their real income
Brazil, Japan, and China are growing very quickly because
a nonrenewable natural resource.
Copper is an example of
labor
For a given level of technology, we should expect an increase in labor productivity within a nation when there is an increase in each of the following except
in the future, U.S. GDP will rise more than U.S. GNP
If Mazda builds a new plant in Illinois,
doubles output
If a production function exhibits constant returns to scale, doubling all of the inputs
3.1 percent
If real income per person in 2015 is $18,073 and real income per person in 2016 is $18,635, what is the growth rate of real income over this period?
human capital
Madelyn goes to college and reads many books while at school. Her education increases which of the following factors of production?
it may be harder for it to grow quickly because of the diminishing returns to capital.
Once a country is wealthy
our productivity because our income is equal to what we produce.
Our standard of living is most closely related to
current consumption
The opportunity cost of growth is a reduction in
an ever-increasing population is constrained only by the food supply, resulting in chronic famines.
Thomas Malthus argued that
nationalize major industries
To increase growth, governments should do all of the following except
it has the potential to grow relatively quickly due to the "catch-up effect."
When a nation has very little income per person,
A farmer discovers that it is better to plant in the spring rather than in the fall
Which of the following describes an increase in technological knowledge?
Susan pays her college tuition
Which of the following expenditures to enhance productivity is most likely to emit a positive externality?
increase restrictions on the importing of Japanese automobiles and electronics
Which of the following government policies is least likely to increase growth in Africa?
Toyota buys stock in Ford, and Ford uses the proceeds to build a new plant in Michigan.
Which of the following is an example of foreign portfolio investment?
Countries have great variance in both the level and growth rate of income per person; thus, poor countries can become relatively rich over time.
Which of the following statements is true?
All of the above are true.
Which of the following statements regarding the impact of population growth on productivity is true?
