18 Questions
Which of the following is an example of a natural resource?
Mineral deposits
An increase in which of the following would lead to an increase in productivity?
Natural resources per worker
What is an effect of an advance in technological knowledge?
An increase in productivity
Which of the following types of technological knowledge is known only by the company that discovers it?
Proprietary knowledge
What is a factor that determines how productive a country is?
All of the above
What is an example of institutional factors that affect productivity?
Education system
Which factor is responsible for the rise in living standards over the long run?
Technological progress
What is a key characteristic of knowledge that makes it a public good?
It can be shared freely
Which of the following policies is designed to promote technological progress?
Providing tax incentives for private sector R&D
What is the primary reason that countries with outward-oriented policies have succeeded?
They have adopted institutions that support innovation and trade
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
What is the primary role of 'A' in the production function Y = A × F(L, K, H, N)?
Representing the level of technology
What is the primary role of patent laws in promoting technological progress?
To protect intellectual property and encourage innovation
What would be the result of doubling all inputs in a production function with constant returns to scale?
Output would double
What is an implication of constant returns to scale in a production function?
Increasing all inputs by 10% would increase output by 10%
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
Which of the following is NOT a variable in the production function Y = A × F(L, K, H, N)?
Institutional factors
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%
Learn about the factors that determine a country's productivity, including natural resources and their impact on the production of goods and services. Understand how an increase in natural resources per worker can lead to an increase in production per worker.
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