|
economic growth is best defined as an increase in |
either real GDP or real GDP per capita |
|
real GDP per capita is found by |
dividing real GDP by popoulation |
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under what circumstances do rates of economic growth understate the growth of economic well-being? |
product quality has improved |
|
which of the following statements is most accurate about modern economic growth? |
modern economic growth is characterized by sustained and ongoing increases in living standards |
|
strong property rights are important for modern economic growth because |
people are most likely to invest if they don’t fear that others can take their returns on investment without compensation |
|
which of the following institutional structures is most likely to promote growth? |
a well enforced system of patents and copyrights |
|
a competitive market system |
encourages growth by allowing producers to make profitable investment decisions based on market signals |
|
free trade |
encourages growth by promoting the rapid spread of new inventions and innovations |
|
what is not a supply factor in economic growth? |
aggregate expenditures of households, businesses, and gov.’t |
|
the achievement of full employment through time will |
increase the realized rate of economic growth |
|
economic growth can be portrayed as |
as outward shift of production possibilities curve |
|
labor productivity is measured by |
real output per worker-hour |
|
other things equal, which of the following would decrease the rate of economic growth as measured by changes in real GDP |
a decrease in the labor force participation rate |
|
which of the following would not be expected to increase labor productivity |
an increase in the size of the labor force |
|
labor productivity is defined as |
total output/ worker-hours |
|
the largest contributor to increases in the productivity of american labor is |
technological advance |
|
more than half the growth of real GDP in the US is caused by |
increases in the productivity of labor |
|
a nation’s infrastructure refers to |
public capital goods such as highways and sanitation systems |
|
other things equal, which of the following would increase labor productivity the most? |
the increase in the stock of real capita exceeds the increase in inputs of labor |
|
human capital refers to |
the skills and knowledge that enable a worker to be productive |
|
critics of economic growth |
argue that economic growth does not resolve socioeconomic problems such as an unequal distribution of income and wealth |
|
the inverse dependency ratio is defined as |
the number of people of working age divided by the number of dependents |
|
the inverse dependency ratio is predicted to fall about 1,16 by 2050. what is the most likely effect of this decline? |
living standards will fall if productivity gains don’t sufficiently offset the decline in the ratio |
|
one of the main arguments against further growth for industrialized nations focuses on the problem of |
environmental quality |
|
one of the basic economic defenses of economic growth rests on the conclusion that |
growth makes the gap between unlimited wants and scare resources less acute |
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