ECON Chap 7

Assuming a country's economy maintains an 8% rate of growth, young adults starting at age 20 would see the average standard of living in their country more than double by the time they had reached age __________.

30

When discussing economic growth, it is often useful to focus on ____________, to avoid studying changes in the size of GDP that represent only having more people in the economy, and focus on those increases in GDP which represent an actual rise in the standard of living on a per person basis.

GDP per capita

Which of the following best describes the relationship between economic growth and literacy?

Increased literacy stimulates economic growth by raising labor productivity,

When society has a higher level of capital per person, it is called ______________.

capital deepening

Which of the following is most likely to contribute to economic growth as measured by GDP per capita?

increased capital investment

Investment in human capital:

is an important source of economic growth.

A nation can achieve higher economic growth if:

it devotes more resources to research and development

Country Alpha and Country Beta initially have the same real GDP per capita. Country Alpha experiences no economic growth, while Country Beta grows at a sustained rate of 5 percent. In 14 years, Country Alpha's GDP will be approximately _________ that of Country Beta.

one-half

Over the long run, ____________ is the most important determinant of the average wage level in any economy.

productivity

The value of what is produced per worker, or per hour worked, is called ____________.

productivity

To achieve a high standard of living, a nation should:

promote economic growth

Which of the following is unlikely to affect the rate of economic growth?

the level of government spending