Chapter 13 Why Do Economies Grow?

| November 9, 2018

11)
Recall the application. China’s growth rate was faster than India’s during this
26 year period because
A)
China received more contributions from human capital than India received.
B)
China invested more in physical capital than India invested.
C)
China’s growth was based more on human capital and India’s growth was based
more on physical capital.
D)
China’s growth was based more on human capital and India’s growth was based
more on technological progress.

12)
Recall the application. China’s and India’s GNP per capita are ________ U.S.
GNP per capita.
A)
now greater than
B)
still significantly less than
C)
now equal to
D)
within 5 percentage points of

Recall
the Application about adapting growth accounting to new developments in the
economy to answer the following question(s).

13)
Recall the Application. Intangible capital includes all of the following EXCEPT
A)
finished products.
B)
research and development.
C)
customer support.
D)
marketing.

14)
Recall the application. Economists Carol Corrado and Charles Hulten found that
in recent years, as a source of economic growth,
A)
the contributions from tangible capital and intangible capital are, at best,
negligible.
B)
the contributions from tangible capital and intangible capital are about the
same.
C)
the contribution from intangible capital exceeded the contribution from
tangible capital.
D)
the contribution from tangible capital exceeded the contribution from
intangible capital.

15)
Recall the application. Economists Carol Corrado and Charles Hulten found that
A)
the combined contributions from tangible capital and intangible capital
contributed more to economic growth than technological progress.
B)
the combined contributions from tangible capital and intangible capital
contributed less to economic growth than technological progress.
C)
the contributions from traditional capital are still the primary source of
economic growth.
D)
labor no longer plays a significant role as a source of economic growth.

16)
Labor productivity is defined as
A)
total output per worker.
B)
output per hour of work.
C)
output divided by the average hourly wage.
D)
price of output divided by cost of output.

17)
Technological progress means that we produce more output with the same amount
of inputs.

18)
Technological innovations are not necessarily major scientific breakthroughs.

19)
Technological progress can be another mechanism which affects economic growth.

20)
In terms of technological progress, economists interpret this as meaning an economy
operates more efficiently by producing more output without using any more
inputs.

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