Question 1

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

Accepted Answer

This statement is generally true, as countries with high population growth rates often struggle to provide adequate educational opportunities and resources for their growing populations, leading to lower levels of overall educational attainment. Additionally, in some cases, cultural or social factors may contribute to lower educational attainment in high population growth countries.

Question 2

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.

Accepted Answer

The answer of At first patents might seem like a...

Question 3

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.

Accepted Answer

The answer of Why is productivity related to the standard...

Question 4

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.

Accepted Answer

The answer of The catch-up effect says that countries with...

Question 5

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

Accepted Answer

The answer of Why does a nation's standard of living...

Question 6

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?

Accepted Answer

The answer of Some economists argue that it is possible...

Question 7

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

Accepted Answer

Michael Kremer actually found the opposite. He discovered that economic growth rates increased with population growth, especially in the long run. This is known as the "population as an asset" theory.

Question 8

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

Accepted Answer

The answer of How do outward-oriented policies affect a nation's...

Question 9

What is the difference between human capital and technology?

Accepted Answer

The answer of What is the difference between human capital...

Question 10

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?

Accepted Answer

The answer of Some data that at first might seem...

Question 11

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

Accepted Answer

The population growth rate tends to be higher in developing countries than in developed countries. This is because developing countries have higher fertility rates and lower levels of contraception use compared to developed countries.

Question 12

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

Accepted Answer

The answer of What is a production function? Write an...

Question 13

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 are more likely to delay childbirth and have fewer children. This is because they are able to control their own lives, make independent decisions, and have more options for their future. As a result, policies that promote gender equality and empower women can lead to lower birth rates.

Question 14

Compare and contrast the population theories of Malthus and Kremer.

Accepted Answer

The answer of Compare and contrast the population theories of...

Question 15

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

Accepted Answer

The answer of In addition to investment in physical and...

Question 16

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

Accepted Answer

A country's standard of living is determined by its productivity, which is measured by its ability to produce goods and services efficiently. The more a country produces, the greater its standard of living as there will be more goods and services available for consumption by its citizens.

Question 17

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. $$\begin{array} { | c | c | c | } 
\hline \text { Year } & \text { Real GDP (2000pricas) } & \text { Papulation } \
\hline 1987 & \$ 6,435,000 \text { millian } & 243 \text { millian } \
\hline 2005 & \$ 11,092,000 \text { millian } & 296.6 \text { million } \
\hline
\end{array}$$

Accepted Answer

The answer of Use the data on U.S. real GDP...

Quiz 12: Production and Growth