Question 1

What is the difference between human capital and technology?

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Question 2

Compare and contrast the population theories of Malthus and Kremer.

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Question 3

What is a production function? Write an equation for a typical production function,and explain what each of the terms represents.

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Question 4

The United Kingdom is

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The United Kingdom is considered an advanced economy, but over the past century, its rate of economic growth has been lower than that of the United States. This can be attributed to various factors such as the decline of its manufacturing sector, increased competition from emerging economies, and a period of economic stagnation in the 1970s and early 1980s.

Question 5

A country's standard of living depends on its ability to produce goods and services.

Accepted Answer

The production of goods and services is a key factor in the economic growth of a country, which in turn affects the standard of living of its people. The more goods and services a country can produce, the higher the income and quality of life its citizens can have.

Question 6

Why does a nation's standard of living depend on property rights?

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Question 7

The population growth rate tends to be higher in developed countries than in developing countries.

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The population growth rate is generally higher in developing countries due to factors such as high fertility rates, limited access to family planning, and lower rates of mortality. Developed countries, on the other hand, tend to have lower fertility rates and better access to healthcare, resulting in slower population growth rates.

Question 8

At first patents might seem like a deterrent to growth because in effect they restrict the use of new technology.Yet many economists believe that patents generate growth.Explain why.

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Question 9

Some economists argue that it is possible to raise the standard of living by reducing population growth.As an economist interested in incentives rather than coercion,what kind of policy would you recommend to slow population growth?

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Question 10

Measured in 2008 dollars,real GDP per person in the United States in 2008 was about

Accepted Answer

According to the Bureau of Economic Analysis, real GDP per capita in the United States in 2008 was $48,481. Adjusted for inflation to 2008 dollars, the figure is approximately $47,000.

Question 11

In countries where women are discriminated against,policies that increase the likelihood of career success and educational opportunities for women are likely to decrease the birth rate.

Accepted Answer

When women have access to education and career opportunities they tend to pursue them, which means they are more likely to delay having children or have fewer children. This is because they prioritize their education and career over starting a family early and having multiple children. As a result, increasing opportunities for women is likely to decrease the birth rate in countries where women are discriminated against.

Question 12

Countries with high population growth rates tend to have lower levels of educational attainment.

Accepted Answer

This is often observed due to limited resources and infrastructure to provide education to a large number of children. As a result, children in such countries may not receive a complete education or drop out early, leading to lower overall levels of educational attainment.

Question 13

How do outward-oriented policies affect a nation's productivity?

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Question 14

Why is productivity related to the standard of living? In your answer be sure to explain what productivity and standard of living mean.Make a list of things that determine labor productivity.

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Question 15

Some data that at first might seem puzzling: The share of GDP devoted to investment was similar for the United States and South Korea from 1960-1991.However,during these same years South Korea had a 6 percent growth rate of average annual income per person,while the United States had only a 2 percent growth rate.If the saving rates were the same,why were the growth rates so different?

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Question 16

Use the data on U.S.real GDP below to compute real GDP per person for each year.Then use these numbers to compute the percentage increase in real GDP per person from 1987 to 2005.

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Question 17

Measured in 2008 dollars,real GDP per person in the United States in 2008 was about 8 times that of

Accepted Answer

According to the information given, the real GDP per person in the United States in 2008 was about 8 times that of China.

Question 18

Economist Michael Kremer found that world growth rates fell as population increased.

Accepted Answer

Michael Kremer proposed that over the long term, population growth has been associated with technological innovation and economic growth, suggesting that larger populations have historically led to more ideas and innovations, contributing to higher growth rates.

Question 19

The catch-up effect says that countries with low income can grow faster than countries with higher income.However,in statistical studies that include many diverse countries we do not observe the catch-up-effect unless we control for other variables that affect productivity.Considering the determinants of productivity,list and explain some things that would tend to prohibit or limit a poor country's ability to catch up with the rich ones.

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Question 20

In addition to investment in physical and human capital,what other public policies might a country adopt to increase productivity?

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Quiz 25: Production and Growth