Questions and Answers
A country will roughly double its GDP in twenty years if its annual growth rate is?
3.5 percent
A nation can achieve higher economic growth if?
it devotes more resources to research and development
A nation's prosperity is sometimes measured in terms of ___________.
GDP per capita
An economy's rate of productivity growth is closely linked to the growth rate of its ______________.
Signup and view all the answers
During the last two centuries, the average rate of growth of GDP per capita in the leading industrialized countries has averaged about _________ per year.
Signup and view all the answers
Economists typically measure economic growth by tracking?
Signup and view all the answers
In macroeconomics, the connection from inputs to outputs for the entire economy is called _______________.
Signup and view all the answers
Increased investment alone will guarantee economic growth.
Signup and view all the answers
Investment in human capital is characterized by?
Signup and view all the answers
Of the world's population of 6.7 billion people, _________ are scraping by on incomes that average less than $2 per day.
Signup and view all the answers
Over the long run, ____________ per hour is the most important determinant of the average wage level in any economy.
Signup and view all the answers
Since the late 1950s, economists have performed 'growth accounting' studies in the United States. These have determined that ________________ is typically the most important contributor to U.S. economic growth.
Signup and view all the answers
Some recent economic research has suggested that African countries' economic growth may have been limited by __________________.
Signup and view all the answers
The value of what is produced per worker, or per hour worked, is called ____________.
Signup and view all the answers
When discussing economic growth, it is often useful to focus on ____________, to avoid studying changes in the size of GDP that represent only having more people in the economy.
Signup and view all the answers
When society has a higher level of capital per person, it is called ______________.
Signup and view all the answers
Which of the following best describes the relationship between economic growth and literacy?
Signup and view all the answers
Which of the following factors contribute to economic growth? (Select all that apply)
Signup and view all the answers
Increased education adds to the stock of human capital, not unlike building factories adds to the stock of physical capital.
Signup and view all the answers
Which of the following is most likely to contribute to economic growth as measured by GDP per capita?
Signup and view all the answers
Which of the government policies below is most unlikely to encourage per capita economic growth?
Signup and view all the answers
_________ is output per hour in the business sector.
Signup and view all the answers
____________ is a term which refers to the widespread use of power-driven machinery and the economic and social changes that resulted in the first half of the 1800s.
Signup and view all the answers
_____________________ is a term which refers to the widespread use of power-driven machinery and the economic and social changes that resulted in the first half of the 1800s.
Signup and view all the answers
Study Notes
Economic Growth and GDP
- A country's GDP can roughly double in twenty years with an annual growth rate of 3.5%.
- Economic growth is often achieved through increased resources for research and development.
- Prosperity is commonly measured using GDP per capita, indicating wealth distributed among the population.
- Productivity growth correlates closely with GDP per capita growth rates.
Historical and Measurement Insights
- Average GDP per capita growth in industrialized nations has been about 2% annually over the last two centuries.
- Economists gauge economic growth through real GDP per capita metrics.
- "Aggregate production function" refers to the relationship between input factors and overall economic output.
Factors Influencing Economic Growth
- Investment quality and human capital, alongside technology improvements, are critical for ensuring economic growth, rather than sheer investment amount.
- Investment in human capital emphasizes knowledge and skill development.
- Approximately 5 billion people globally live on less than $2 per day, highlighting issues of inequality.
Determinants of Wages and Growth Contributors
- Productivity per hour is paramount for determining average wage levels in an economy.
- Since the late 1950s, studies show that technology significantly contributes to U.S. economic growth.
- African nations may experience restrained growth due to geographical and climatic challenges.
Productivity and Capital Levels
- Productivity defines output per worker or per hour worked; it’s fundamental for economic analysis.
- GDP per capita offers a clearer picture of the standard of living by accounting for population size changes.
- Capital deepening refers to increasing capital availability per person, a driver for enhanced productivity.
Education and Workforce Impacts
- Higher literacy rates enhance economic growth through improved labor productivity.
- Factors such as higher education levels and new resource discoveries contribute to economic expansion.
- Education boosts human capital much like factory construction amplifies physical capital.
Economic Policy and Growth Correlations
- Increased capital formation is likely to raise GDP per capita.
- High taxes on companies investing in capital can hinder per capita economic growth.
- Productivity is defined as output per hour, particularly relevant in the business sector.
Historical Context
- The Industrial Revolution marks a significant shift, characterized by the widespread adoption of power-driven machinery leading to profound economic and social changes in the early 1800s.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Explore the intricacies of economic growth and GDP measurement through this quiz. Learn about the factors that influence GDP per capita, the significance of human capital, and the relationship between productivity and economic output. Assess your understanding of how historical data shapes current economic perspectives.
