Question 1

The productivity slowdown of the mid-1970s can be explained by which of the following?

Accepted Answer

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Question 2

Why do some economists point to a decline in the quality of labor as an explanation for the productivity slowdown in the mid-1970s?

Accepted Answer

Some economists believe that the skill level required for many jobs grew during the mid-1970s, but the skills of the labor force did not keep up with this increase, leading to a decline in labor quality and a subsequent productivity slowdown.

Question 3

In the United States,the annual growth rate of real GDP per hour worked between 1995 and 2010 averaged

Accepted Answer

According to the text, the annual growth rate of real GDP per hour worked between 1995 and 2010 averaged 2.1%.

Question 4

One drawback of the patent system is that firms must disclose to the public information about the product or process.

Accepted Answer

When a firm files for a patent, it must disclose information about the invention to the public in order to receive legal protection. This information could potentially be used by competitors to develop similar products or processes, which could be a disadvantage for the patent holder.

Question 5

Growth in real GDP per hour worked in the United States was slowest during what period of time?

Accepted Answer

The period of 1973-1994 had the slowest growth in real GDP per hour worked in the United States, commonly referred to as the "productivity slowdown." This period saw an increase in inflation and unemployment, as well as rising energy costs and declining competitiveness in certain industries.

Question 6

Growth in the United States from 1800 to 1900 can be characterized as

Accepted Answer

The United States experienced positive and increasing growth from 1800 to 1900, which is reflected in the country's increasing population, expanding territories through acquisitions such as the Louisiana Purchase and Annexation of Texas, and rapid industrialization.

Question 7

Is knowledge capital subject to the law of diminishing returns? Explain.

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Question 8

The "new economy" that emerged in the mid-1990s is based on

Accepted Answer

The "new economy" that emerged in the mid-1990s is primarily based on information technology, with the rise of the internet and increasing use of digital technology driving much of the economic growth during this period. While manufacturing, financial services, and retail sales all played a role in this new economy, they were not the driving force behind its emergence.

Question 9

Describe the process of "creative destruction" using a specific example.

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Question 10

Explain how advances in technology are critical to sustaining economic growth,even if capital per hour worked is consistently increasing.Provide a graph of a per-worker production function to support your answer.

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Question 11

Which of the following advances contributed to the "new economy" of the mid-1990s?

Accepted Answer

All of the advances mentioned - increased use of the Internet, expanded cell phone use, and lower cost and increased availability of laptop computers - contributed to the "new economy" of the mid-1990s. These advances allowed for increased connectivity and accessibility, leading to new business models and industries.

Question 12

Human capital refers to the percentage of the working-age population in the labor force.

Accepted Answer

Human capital refers to the knowledge, skills, and abilities possessed by individuals and their ability to contribute to the economy. It is not defined as the percentage of the working-age population in the labor force.

Question 13

Some economists argue that the apparent slowdown in economic growth in the United States during the mid-1970s may not really have reduced the standard of living because

Accepted Answer

Some economists argue that the slowdown in economic growth in the mid-1970s may not have reduced the standard of living because significant improvements in the quality of services occurred, although the quantity of these services did not increase much during this time. This could include improvements in healthcare, education, and technology. Therefore, while economic growth may have slowed, the quality of life for Americans may have continued to improve.

Question 14

Explain how market economies are generally better able to achieve technological progress than are centrally planned economies.

Accepted Answer

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Question 15

The rate of growth of productivity in the United States was positive during the 20th century.

Accepted Answer

Despite fluctuations, the overall rate of productivity growth in the US was positive during the 20th century, averaging around 2% per year.

Question 16

Which of the following explains the ability of the U.S.economy to avoid diminishing marginal returns and experience accelerating growth in the early to mid-20th century?

Accepted Answer

Continuing technological change allowed the U.S. economy to continually innovate and increase productivity, avoiding diminishing marginal returns and experiencing accelerating growth in the early to mid-20th century.

Question 17

Which of the following is true regarding the productivity slowdown in the United States during the mid-1970s?

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Question 18

Provide examples of three kinds of government policies that can help increase the accumulation of knowledge capital and explain why government policies are often necessary to encourage the accumulation of knowledge capital.

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Question 19

Starting at point B in the diagram below,identify which combinations of points illustrate technological change.Give a brief explanation to support your answer.

Accepted Answer

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Question 20

Technological change is the key to sustaining economic growth.

Accepted Answer

Technological change leads to innovation, increasing productivity and efficiency, thereby contributing to economic growth. Without technological change, an economy may reach a stagnant state, resulting in reduced growth and performance.

Quiz 22: Long-Run Economic Growth: Sources and Policies