Question 1

Technical change that results in a change in the production process is known as disembodied technical change.

Accepted Answer

Disembodied technical change refers to a situation where technical progress occurs as a result of innovation in the overall industrial process, without any changes in the specific products that are being produced. This means that the improvement in the production process is not linked to any particular input or product, but rather involves changes in the way that inputs are transformed into outputs.

Question 2

Which of the following was one of the likely causes of the productivity problem in the 1970s?
A) a reduction in government regulation
B) increased research and development spending
C) an increase in investment spending
D) low saving rates

Accepted Answer

Low saving rates can result in a decrease in investment, which in turn can lead to a decrease in productivity as firms have less capital to work with.

Question 3

An invention is an advance in knowledge.

Accepted Answer

An invention is a new and creative solution to a problem, which requires an advance in knowledge. It is the result of applying scientific or practical knowledge to solve problems or meet needs. Therefore, an invention is a clear example of an advance in knowledge.

Question 4

Disembodied technical change results in
A) a change in the production process.
B) embodied technical change.
C) population growth.
D) an increase in the labor supply.

Accepted Answer

Disembodied technical change refers to changes that do not require any physical investment or changes to the production process. However, such changes may still have an impact on the way goods and services are produced. Therefore, the correct answer is A - a change in the production process. The other options are not relevant to the concept of disembodied technical change.

Question 5

An advance in knowledge is
A) an invention.
B) an innovation.
C) human capital accumulation.
D) all of the above

Accepted Answer

The answer of An advance in knowledge is
A) an invention.
B)...

Question 6

Technical change that results in an improvement in the quality of capital is known as disembodied technical change.

Accepted Answer

Disembodied technical change refers to technical change that results in a change in the production process itself, while embodied technical change refers to technical change that results in an improvement in the quality of inputs, such as capital.

Question 7

Higher energy prices in the 1970s ________ labor productivity because a great deal of investment went into transforming the existing capital stock into more energy-efficient forms.
A) had no impact on
B) slightly increased
C) reduced
D) more than doubled

Accepted Answer

The higher energy prices in the 1970s reduced labor productivity as investments were redirected towards making the existing capital stock more energy-efficient, rather than towards direct productivity-enhancing measures.

Question 8

Related to the Economics in Practice on p. 624: According to a study cited in the Economics in Practice, if a country is relatively far from the technological frontier of the rest of the world, what would be its best strategy?
A) The government needs to keep helping its firms find the world frontier until the firms reach the frontier.
B) The government should begin by offering incentives and encourage some risk taking.
C) The government needs to help its firms find the world frontier, and then as firms approach the frontier, the government should offer incentives and encourage some risk taking.
D) The government should adopt a hands-off approach and let the private sector bring the country to the world frontier.

Accepted Answer

According to the study cited in the Economics in Practice, if a country is relatively far from the technological frontier of the rest of the world, its best strategy would be to have the government help its firms find the world frontier. As firms approach the frontier, the government should offer incentives and encourage some risk-taking. This approach balances government support with private sector initiative and allows for the development and growth of firms in the country.

Question 9

One reason that labor productivity has increased is because of disembodied technical change.

Accepted Answer

Disembodied technical change refers to improvements in technology that do not require changes in physical capital, such as software and information technology. These kinds of advancements have been a major driver of labor productivity increases in modern economies.

Question 10

A key problem facing Sub-Saharan Africa in terms of human capital is health.

Accepted Answer

Sub-Saharan Africa has some of the highest rates of infectious diseases, malnutrition, and maternal and child mortality in the world which can significantly affect the health and well-being of its population, and thus, impact human capital development in the region.

Question 11

Innovation is the use of ________ to improve productivity and enhance economic growth.
A) knowledge
B) physical capital
C) natural resources
D) an increased labor force

Accepted Answer

Innovation is the application of new ideas or knowledge to improve productivity and enhance economic growth. While physical capital and natural resources are important factors in economic growth, innovation is what drives progress and improvements in productivity. An increased labor force can contribute to economic growth, but without innovation, it may not result in sustained economic growth in the long run.

Question 12

An increase in human capital will decrease output.

Accepted Answer

An increase in human capital, which refers to the skills, knowledge, and education of a workforce, is likely to increase output as workers become more productive and efficient.

Question 13

If an economy experiences growth in productivity without growth in its labor force, it will grow.

Accepted Answer

A growth in productivity means that more output is being produced with the same amount of input, which can lead to an increase in economic growth without an increase in labor force.

Question 14

A decrease in capital/labor ratio enhances economic growth.

Accepted Answer

A decrease in capital/labor ratio means that there is less capital available for each worker, which can lead to decreased productivity and ultimately slower economic growth. Therefore, a decrease in capital/labor ratio does not enhance economic growth.

Question 15

Increased human capital is a source of
A) an increased labor force rate.
B) increased productivity.
C) decreased wages.
D) decreased output.

Accepted Answer

Increased human capital, through education and training, leads to an increase in the skills and knowledge of workers, which in turn increases productivity. It does not necessarily lead to an increased labor force rate or decreased wages, and it would not result in decreased output.

Question 16

Foreign direct investment is any investment made in a country by residents outside that country.

Accepted Answer

Foreign direct investment (FDI) refers to any investment made by an investor in one country into business interests located in another country. It involves a long-term relationship reflecting an enduring interest and control, and it is associated with the management or ownership of a company.

Question 17

Which of the following was not one of the likely causes of the productivity problem of the 1970s?
A) rapid growth in investment spending
B) a reduction in government regulation
C) an increase in research and development spending
D) all of the above

Accepted Answer

The productivity problem of the 1970s was not caused by rapid growth in investment spending, a reduction in government regulation, or an increase in research and development spending. These factors typically would support or enhance productivity, not hinder it.

Question 18

Related to the Economics in Practice on p. 628: The emigration of Jewish scientists from Germany to the United States in the late 1930s and early 1940s may have increased patent rates in their fields of chemistry by
A) up to 5%.
B) 15%.
C) more than 30%.
D) over 100%.

Accepted Answer

The emigration of Jewish scientists from Germany to the United States in the late 1930s and early 1940s led to a significant increase in the number of patents filed in the US, particularly in the fields of chemistry and physics. It has been estimated that patent rates in these fields increased by more than 30% as a result of this migration.

Question 19

Disembodied technical change is one reason why
A) human capital is more valued in an economy than physical capital.
B) the quality of capital had decreased.
C) labor productivity has increased over time.
D) increases in population decrease labor productivity.

Accepted Answer

Disembodied technical change refers to advancements in technology that do not require changes in physical capital or the workforce. These advancements lead to increases in labor productivity over time, as workers are able to do more with the same amount of resources. Therefore, the correct answer is C: labor productivity has increased over time.

Question 20

Labor productivity can increase even if the labor force increases.

Accepted Answer

Labor productivity is measured as the output per unit of labor input. It is possible for labor productivity to increase even if the labor force increases if the output increases at a faster rate than the increase in the labor force. This can occur through improvements in technology or changes in work processes that make labor more efficient.

Quiz 31: Long-Run Growth

Technical change that results in a change in the production process is known as disembodied technical change.

Which of the following was one of the likely causes of the productivity problem in the 1970s?

An invention is an advance in knowledge.

Disembodied technical change results in

An advance in knowledge is

Technical change that results in an improvement in the quality of capital is known as disembodied technical change.

Higher energy prices in the 1970s ________ labor productivity because a great deal of investment went into transforming the existing capital stock into more energy-efficient forms.

Related to the Economics in Practice on p. 624: According to a study cited in the Economics in Practice, if a country is relatively far from the technological frontier of the rest of the world, what would be its best strategy?

One reason that labor productivity has increased is because of disembodied technical change.

A key problem facing Sub-Saharan Africa in terms of human capital is health.

Innovation is the use of ________ to improve productivity and enhance economic growth.

An increase in human capital will decrease output.

If an economy experiences growth in productivity without growth in its labor force, it will grow.

A decrease in capital/labor ratio enhances economic growth.

Increased human capital is a source of

Foreign direct investment is any investment made in a country by residents outside that country.

Which of the following was not one of the likely causes of the productivity problem of the 1970s?

Related to the Economics in Practice on p. 628: The emigration of Jewish scientists from Germany to the United States in the late 1930s and early 1940s may have increased patent rates in their fields of chemistry by

Disembodied technical change is one reason why

Labor productivity can increase even if the labor force increases.