Human Capital Growth and Technological Advances Quiz

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According to the new growth theory, what drives the constant desire for a higher standard of living?

Limits on natural resources

Diminishing returns to capital

The perpetual nature of human wants (correct)

Stagnation in technological progress

Which policy is most likely to stimulate research and development according to the text?

Providing international aid to developing nations

Improving the quality of education

Directing public funds towards financing basic research (correct)

Encouraging international trade

How can governments contribute to a nation's growth potential according to the text?

By improving the quality of education (correct)

By encouraging international trade

By stimulating saving

By providing international aid to developing nations

What is the primary mechanism through which providing international aid to developing nations is expected to increase investment and growth in those countries?

By increasing capital per worker Signup and view all the answers

Which of the following is a key policy lever identified in the text for achieving faster economic growth?

Stimulating research and development Signup and view all the answers

According to the new growth theory, what is the primary driver of economic growth in the long run?

Technological advances Signup and view all the answers

What is the most fundamental source of economic growth?

Human capital growth Signup and view all the answers

Which theory emphasizes that without advances in technology, we must eventually hit diminishing returns due to a population explosion?

Classical growth theory Signup and view all the answers

What is highlighted as a key factor to keep growth going according to Neoclassical growth theory?

Accumulating physical capital Signup and view all the answers

In the context of economic growth, what does New growth theory emphasize?

Innovation by human resources at a pace that offsets diminishing returns Signup and view all the answers

What is the main contribution of technological change to labor productivity?

Technological advance Signup and view all the answers

What is highlighted as necessary for economic growth besides physical resources and physical capital?

Innovation in technology Signup and view all the answers

What is the main determinant of potential GDP according to the passage?

Labor productivity Signup and view all the answers

Which of the following is not mentioned in the passage as a factor that determines potential GDP?

Growth theories Signup and view all the answers

According to the passage, what is the relationship between the real wage rate and the quantity of labor demanded?

Negative correlation Signup and view all the answers

Which of the following economies are mentioned in the passage as having grown very rapidly and caught up or are catching up with the United States?

Korea, Singapore, and Hong Kong Signup and view all the answers

According to the passage, what is the definition of economic growth?

A sustained, year-after-year increase in potential GDP Signup and view all the answers

Human Capital Growth and Technological Advances Quiz

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