Question 1

Why is improving education important for technological progress?

Accepted Answer

The answer of Why is improving education important for technological...

Question 2

Technological progress does not depend on:

Accepted Answer

Technological progress can occur without the availability of natural resources. Many technological advancements have been made in fields such as software development and biotechnology, where the availability of natural resources is not a determining factor. However, choices A, B, and C are all important factors that can contribute to technological progress. Quality education systems, intellectual capabilities of the population, and investments in research and development can all lead to the development of new technologies and advancements.

Question 3

Inward orientation policies, such as those in India between 1947 and 1993 have tended to:

Accepted Answer

Inward orientation policies tend to limit growth opportunities as they focus on internal production and consumption rather than expanding trade and exports. This was observed in India between 1947 and 1993, where policies such as import substitution and restrictions on foreign investment limited the growth potential of Indian businesses and industries.

Question 4

Continuing economic growth requires:

Accepted Answer

Economic growth is a sustained increase in output of goods and services over time, which can be achieved through investment in plant, equipment, human capital, and technological progress. Investment in plant and equipment increases the productive capacity of the economy, investment in human capital enhances the skills and abilities of the workforce, and technological progress increases efficiency and productivity, leading to higher output and economic growth. Therefore, investment in plant, equipment, human capital, and technological progress is necessary for continued economic growth.

Question 5

Countries have tried various methods to increase their living standards by reducing population growth.As an economist interested in incentives rather than coercion, what kind of policy would you recommend to slow population growth?

Accepted Answer

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Question 6

Given a production function Y = AF(L, K, H, N), where Y is the quantity of output, L is the quantity of labour, H is the quantity of human capital and N is the quantity of natural resources, what does A represent?

Accepted Answer

A represents the level of available production technology, also known as total factor productivity (TFP) which includes technology, knowledge, and efficiency in production processes. It shows the level of output that can be produced from given inputs of labour, capital, human capital, and natural resources. Productivity growth and technological growth are related concepts, but they refer to changes in A over time rather than the level of A itself. The physical capital per worker is represented by K/L.

Question 7

Using the rule of 70, calculate approximately how many years it would take for a country's real per-capita GDP to double if the growth rate is:
a.one per cent
b.two per cent
c.3.5 per cent
d.10 per cent
e.14 per cent

Accepted Answer

The answer of Using the rule of 70, calculate approximately...

Question 8

Which of the following countries have a history of providing political stability and property rights to international firms?

Accepted Answer

Japan and Australia have a history of providing political stability and property rights to international firms. The United Arab Emirates has also emerged as a business-friendly destination in recent years. Italy, New Zealand, Malaysia, Congo, South Africa, and Cameroon have had varying degrees of political instability and concerns about property rights for international businesses.

Question 9

Although technological knowledge and human capital are closely related, there is an important difference.

Accepted Answer

Human capital refers to the knowledge, skills, and abilities possessed by individuals which enable them to contribute to economic growth and development. Technological knowledge, on the other hand, refers to society's understanding of how to create and use technology. While both are related, they are not the same thing. Therefore, option C is the correct answer, as it correctly defines the difference between technological knowledge and human capital.

Question 10

Suppose that the average weekly income in a nation was $120 in 1952, and the growth rate of average income is 3.5 per cent per year.About how high will average national weekly income be in 2012?

Accepted Answer

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Question 11

Economists believe that governments that encourage research and development through their policies do it through which of the following methods?

Accepted Answer

The methods mentioned in option B are commonly used by governments to encourage research and development. A patent system creates incentives for researchers by granting them exclusive rights to their inventions. University research funding supports academic research and development, and conferring intellectual property rights allows researchers to profit from their discoveries. Option A could also be a way for governments to encourage research and development, but it is not mentioned in the other options. Option C includes consumer subsidies, which may not necessarily encourage research and development, and option D mentions decreased migration, which is not directly related to policy measures to encourage R&D.

Question 12

The output per worker equation Y/L = A F(1, K/L, H/L, N/L) provides a mechanical summary of the four determinants of:

Accepted Answer

The output per worker equation Y/L = A F(1, K/L, H/L, N/L) is used to describe productivity, which is the amount of output per worker in an economy. The equation takes into account the four determinants of productivity: physical capital (K/L), human capital (H/L), natural resources (N/L), and technology (A). Therefore, the best choice is D, productivity.

Question 13

Which of the following statements is correct?

Accepted Answer

The answer of Which of the following statements is correct?
...

Question 14

In the countries of South Asia in 1992, only 56 young women were enrolled in secondary school for every 100 young men.Which of the following would help to increase economic growth in these countries?

Accepted Answer

All of these options will help to increase economic growth in South Asian countries. By increasing career opportunities for women, the talent pool available for employment will widen, leading to increased productivity and economic growth. Improved awareness and access to birth control techniques can help control population growth, which in turn can lead to increased economic growth. Lastly, by granting women easier access to education, more women will have the skills and knowledge necessary to participate in the workforce, further expanding the talent pool and boosting economic growth.

Question 15

Population growth can:

Accepted Answer

Population growth can promote economic growth only if policies are focused on GDP per capita rather than total GDP. Increasing population without a corresponding increase in productivity and income per capita can lead to poverty and unemployment. Focusing on GDP per capita ensures that the benefits of economic growth are more evenly distributed among the population.

Question 16

Is there statistical evidence that shows correlations between investment and economic growth, and between population growth and economic growth across countries, where growth is defined in terms of per-capita GDP? Does this evidence prove a causal relationship?

Accepted Answer

The answer of Is there statistical evidence that shows correlations...

Question 17

The neo-classical approach to economic growth makes a prediction that poor countries will actually grow faster than ____ ones and will eventually _______ in terms of their GDP per capita.

Accepted Answer

The neo-classical approach predicts that poorer countries will grow faster than richer countries because they have more room for improvement and can adopt technology more easily. Eventually, they will catch up in terms of GDP per capita.

Question 18

Firms bring in combinations of labour and capital to produce output.How much output can be produced from a given combination of labour and capital depends on: if the production function of a country has constant returns to scale and all input of the country has increased by 100 per cent, then its output would increase by:

Accepted Answer

The state of technology, managerial expertise, the skills of the work force and other factors determine how much output can be produced from a given combination of labour and capital. Even if all inputs increase by 100%, if the technology and skills of the workforce do not improve, output may not increase at the same rate. Therefore, choice D is the best answer.

Question 19

The historical data show that:

Accepted Answer

Historical data show that the world's richest countries have not always remained the richest and there is no guarantee that they will continue to be so. For example, in the 19th century, countries like China and India were among the richest, but their economies went through periods of decline while countries like the United States and Japan gained in economic power. This demonstrates that economic fortunes can change over time, and there is no fixed way for a particular country to remain wealthy.

Question 20

Which of the following make economic growth certain?

Accepted Answer

No single factor can guarantee economic growth. While property rights, democracies, and markets are important ingredients, they do not automatically or always lead to economic growth. Other factors such as natural resources, technological innovation, stable macroeconomic policies, and access to markets and trade play a role as well.

Quiz 26: Production and Growth