Question 1

Figure 25-1 
-Refer to Figure 21-1. In what way is the figure relevant to the catch-up effect?

Accepted Answer

The answer of Figure 25-1 
-Refer to Figure 21-1. In...

Question 2

Figure 25-1 
-Refer to Figure 21-1. Does the figure represent the idea that the amount of capital per worker influences the amount of output per worker, or does the figure represent the idea that the amount of output per worker influences the amount of capital per worker?

Accepted Answer

The answer of Figure 25-1 
-Refer to Figure 21-1. Does...

Question 3

Consider the production function Y = 4FL,K,H,N). Suppose F10,8,6,5)= 100 and F30,24,18,15)=300. Does the production function have the property of constant returns to scale? Why or why not?

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Question 4

How does the phenomenon of diminishing returns to capital explain the catch-up effect?

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Question 5

In recent decades, economic growth has been much more rapid in South Korea than in the United States. What is the likely explanation for this fact?

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Question 6

Studies have found that there is a relationship between height and productivity. Briefly explain.

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Question 7

Figure 25-1 
-Refer to Figure 21-1. "When the amount of capital per worker increases by one unit, a poor country experiences a greater benefit than does a rich country." Does the figure illustrate this notion? Briefly explain.

Accepted Answer

The answer of Figure 25-1 
-Refer to Figure 21-1. "When...

Question 8

In the production function Y = AFL,K,H,N), Y represents the quantity of output; L represents the quantity of labor; K represents the quantity of physical capital; and H represents the quantity of human capital. What does N represent?

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Question 9

If a production function has the property called , then doubling all inputs causes the amount of output to double as well.

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Question 10

Consider the production function Y=2FL,K,H,N). Suppose F12,10,9,7)=100 and F24,20,18,14)=180. Does the production function have the property of constant returns to scale? Why or why not?

Accepted Answer

The answer of Consider the production function Y=2FL,K,H,N). Suppose F12,10,9,7)=100...

Question 11

Because of , an increase in the saving rate leads to higher growth of income and productivity only for a while.

Accepted Answer

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Question 12

What are the long-run effects on productivity and income of an increase in the saving rate?

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Question 13

Brazil gives cash payments to its poor citizens on the condition that those citizens' children stay in school. In terms of the determinants of productivity, how might this public policy contribute to higher productivity in Brazil?

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Question 14

Research suggests that taller workers tend to earn more income than shorter workers. What does this suggest about the relationship between workers' height and their productivity?

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Question 15

In the production function Y = AFL,K,H,N), Y represents the quantity of output; L represents the quantity of labor; K represents the quantity of physical capital; and N represents the quantity of natural resources. What does H represent?

Accepted Answer

The answer of In the production function Y = AFL,K,H,N),...

Question 16

In what sense is capital accumulation costly to a society?

Accepted Answer

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Question 17

The people of Country X save 10 percent of their income, and the people of Country Y save 25 percent of their income. If these respective saving rates persist forever, will one country or the other enjoy a higher rate of income growth forever? Explain.

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The answer of The people of Country X save 10...

Question 18

Figure 25-1 
-Refer to Figure 21-1. In order for the figure to make sense, do we have to assume that capital is the only determinant of output? Briefly explain.

Accepted Answer

The answer of Figure 25-1 
-Refer to Figure 21-1. In...

Question 19

What is the distinction between foreign direct investment and foreign portfolio investment?

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Question 20

What is the relationship between education and human capital?

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Quiz 17: Production and Growth

Figure 25-1 -Refer to Figure 21-1. In what way is the figure relevant to the catch-up effect?

Figure 25-1 -Refer to Figure 21-1. Does the figure represent the idea that the amount of capital per worker influences the amount of output per worker, or does the figure represent the idea that the amount of output per worker influences the amount of capital per worker?