question
When the amount of human capital and the level of the technical means of the production of goods and services remain fixed, and workers are given more capital to use in production, then output will:
answer
rise at a decreasing rate.
question
If the average family makes $40,000 and the real GDP per capita increases 5%, that will increase the family's total income by $_____.
answer
2,000 ( you take 40,000 times .05 to get 2,000 It had only asked what the total income increase was so the wording was tricky.
question
A country's real GDP per capita increases 1%. The average family made $20,000 a year before the increase. What will the average family now roughly make following the increase in real GDP?
answer
$20,200 a year ( you take 20,000 times .01 to get 200 and then add that back to the original amount of 20,000) The question had asked what the family will now make with that increase.
question
An aggregate production function shows diminishing returns to physical capital when each successive increase in the amount of physical capital per worker leads to _____ productivity.
answer
a smaller increase in
question
According to the Rule of 70, if real GDP per capita grows at 5% per year, then it will double in about _____ years.
answer
14 (I really don't know how they got this exactly but I'm completely guessing here, I took 70 divided by 5 and got 14 so maybe that's how they did it.)
question
If a country experiences increases in the technical means of the production of goods and services, then _____ output will be produced using the same inputs.
answer
more
question
If the average family makes $50,000 and the real GDP per capita increases 4%, that will increase the family's total income to $_____.
answer
52,000
question
_____ is measured as output per worker or output per hour.
answer
Labor productivity
question
Compared to a century ago, the amount of capital per worker has:
answer
increased, because workers are better educated, and there are more buildings and machines.
question
If the economy of the United States grows at 5% per year, the size of the economy will quadruple in about _____ years.
answer
28
question
According to the Rule of 70, if a country's real GDP per capita is growing at a rate of 3.5% a year, it will take _____ years for the GDP to double twice.
answer
40 ( I actually don't know how they did the math on this one, but with a guess I'd say maybe they took 70 divided by 3.5 to get 20 and times that by 2 to get the 40, but I know know.)
question
Sustained economic growth occurs only when:
answer
the productivity of workers increases steadily.
question
GDP has grown in a country at 4% per year for the last 30 years. The labor force has grown at 1% per year and the quantity of physical capital has grown at 5% per year. Physical capital per worker in this country has grown by _____%.
answer
4
question
Question Value: 35 points
Real GDP has grown in a country at 4% per year for the last 30 years. The labor force has grown at 1% per year and the quantity of physical capital has grown at 5% per year. A 1% increase in average physical capital per worker (other things equal) raises productivity by 0.5%. Average education has not changed. How much has technological progress contributed to productivity growth?
Real GDP has grown in a country at 4% per year for the last 30 years. The labor force has grown at 1% per year and the quantity of physical capital has grown at 5% per year. A 1% increase in average physical capital per worker (other things equal) raises productivity by 0.5%. Average education has not changed. How much has technological progress contributed to productivity growth?
answer
1% (hint: There are no numbers applying directly to technological growth, so consider what growth physical capital and human capital caused.)
question
Data for the economy of Wonderland is shown in the table. Real GDP per capita at the beginning of 2011 was:
answer
$5,000. (Maybe calculate real GDP per capita?, I took 10 million real gdp divided by 2000 people to get 5,000)
question
Natural resources in the twenty-first century are less important in determining productivity than human or physical capital for:
answer
countries like Germany and Japan.
question
During the twentieth century in the United States, employment grew _____ the population.
answer
faster than
question
In the twenty-first century, _____ are a less important determinant of productivity than human or physical capital.
answer
natural resource reserves
question
_____ is real gross domestic product (GDP) divided by the population size.
answer
Real GDP per capita
question
If real GDP is $2,000,000 and real GDP per capita is $10,000, then the population is:
answer
200 ( I took the 2 million divided by the 10,000 to get the 200)
question
For the economy as a whole, productivity equals:
answer
real GDP divided by the number of people working.
question
If the economy of the United States grows at 10% per year, the size of the economy will quadruple in about _____ years.
answer
14
question
In the United States, GDP per capita in 2010 was more than five times the amount in 1907; this caused:
answer
a large increase in standard of living.
question
If the U.S. real GDP per capita is now $50,000 and is growing at 2% annually, GDP per capita be in 35 years will be:
answer
$100,000
question
Which is true regarding output per worker?
answer
Holding everything else constant, an increase in physical capital increases the output of a worker at a diminishing rate.
question
Real GDP per capita in an economy doubles in 25 years. Using the Rule of 70, the average growth rate of real GDP for this economy is approximately _____%.
answer
2.8
question
According to the Rule of 70, if real GDP per capita grows at 10% per year, then GDP will double in about _____ years.
answer
7
question
Diminishing returns to physical capital means that real GDP per worker eventually _____ as physical capital per worker increases.
answer
increases
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
