Economics Chapter 10: Determinants of Productivity

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Which of the following is an example of a natural resource?

Human capital

Mineral deposits (correct)

Physical capital

Technological knowledge

An increase in which of the following would lead to an increase in productivity?

Natural resources per worker (correct)

Human capital per worker

Technological knowledge per worker

All of the above

What is an effect of an advance in technological knowledge?

A decrease in productivity

An increase in productivity (correct)

No effect on productivity

Depends on the type of knowledge

Which of the following types of technological knowledge is known only by the company that discovers it?

Proprietary knowledge Signup and view all the answers

What is a factor that determines how productive a country is?

All of the above Signup and view all the answers

What is an example of institutional factors that affect productivity?

Education system Signup and view all the answers

Which factor is responsible for the rise in living standards over the long run?

Technological progress Signup and view all the answers

What is a key characteristic of knowledge that makes it a public good?

It can be shared freely Signup and view all the answers

Which of the following policies is designed to promote technological progress?

Providing tax incentives for private sector R&D Signup and view all the answers

What is the primary reason that countries with outward-oriented policies have succeeded?

They have adopted institutions that support innovation and trade Signup and view all the answers

What is the expected outcome of future innovations worldwide, according to the text?

They will not be transformational enough to promote sustained per-capita economic growth rates Signup and view all the answers

What is the primary role of 'A' in the production function Y = A × F(L, K, H, N)?

Representing the level of technology Signup and view all the answers

What is the primary role of patent laws in promoting technological progress?

To protect intellectual property and encourage innovation Signup and view all the answers

What would be the result of doubling all inputs in a production function with constant returns to scale?

Output would double Signup and view all the answers

What is an implication of constant returns to scale in a production function?

Increasing all inputs by 10% would increase output by 10% Signup and view all the answers

What is the purpose of the function F( ) in the production function Y = A × F(L, K, H, N)?

To show how inputs are combined to produce output Signup and view all the answers

Which of the following is NOT a variable in the production function Y = A × F(L, K, H, N)?

Institutional factors Signup and view all the answers

What would be the result of a 10% increase in all inputs in a production function with constant returns to scale?

Output would increase by 10% Signup and view all the answers