Chapter 12

Our standard of living is most closely related to ___.

What is the opportunity cost of investing in capital?

If people would prefer to have lower consumption and higher future growth, the country may be overinvesting in capital?

Countries with higher income/person generally have ___ property rights protection than those with lower income/person.

Less investment leads to ___ economic growth in the long run.

China, Japan, and Brazil are growing very quickly because ____.

In 100 years, real GDP/person in the US has grown about ___% per year, meaning it has roughly doubled every __ years.

A reasonable measure of the standard of living in a country is ___.

If the extra output produced from an additional unit of capital falls as the stock of capital rises, the country may

If a production function exhibits constant returns to scale, ____.

Maggie goes to college. Her education increases which of the following factors of production?

To increase growth, governments should do all of the following except ___.

The world's rich countries have income/person that is about ___ times income/person in the world's poor countries.

Poor property rights enforcement generally leads to ___ income per person than better property rights protection.

Advances in technology, innovation, and efficient production processes that allow workers to be more productive.

Consumption or Investment: private spending as people buy clothes?

Economists note that the prices of most natural resources, adjusted for overall inflation, have tended to __ over time.

Consumption or Investment: public spending as governments build public housing?

Which of the following expenditures to enhance productivity is most likely to emit a positive externality?

Does a higher rate of saving lead to higher growth temporarily or indefinitely?

Consumption or Investment: public spending as governments pay workers to administer government programs?

Which of the following is an example of foreign portfolio investment?

Which of the following government policies is least likely to increase growth in Africa?

If British Petroleum builds a new plant in Louisiana, ___.

If the extra output produced from an additional unit of capital rises as the stock of capital rises, the country may

The skills, education, and experience that improve worker productivity. Workers with more contribute more to output.

The stock of equipment, tools, and infrastructure available to workers. More usually increases worker efficiency.

When Japanese Toyota expands one of its car factories in the US, what is the likely impact on the GDP and GNP of the US?

A country may be overinvesting in human capital if each person's education level matches his or her profession.

Consumption or Investment: public spending as governments build airports?

 A country may be overinvesting in human capital if the best job a Ph.D. in biology can find is managing a restaurant.

Consumption or Investment: public spending as governments buy military equipment?

Consumption or Investment: private spending as firms buy machines?

The opportunity cost of growth is a ____.

What is the opportunity cost of investing in human capital?

When a nation has very little income per person, it ___.

Over the past century, ___ has experienced particularly strong growth, and ___ has experienced particularly weak growth.

Crude oil is an example of ___.

Consumption or Investment: public spending as governments build tunnels

Increases in the amount of human capital in the economy tend to ___ real incomes because they increase the ___ of labor.

Consumption or Investment: private spending as firms build new factories?

Because capital is subject to diminishing returns, higher saving and investment do not lead to higher

Real income/person in 2021 is $18,073 and real income/person in 2022 is $18,635, what is the growth rate of real income?

Once a country is wealthy, ___.

A country may be overinvesting in human capital if people are not educated enough to fill existing job openings.

Economists are ___ that natural resources will eventually limit economic growth.

Access to land, minerals, oil, and other natural resources that contribute to production.

 More investment leads to ___ economic growth in the long run.

With a given level of technology, an increase in each of these will result in an increase in labor productivity except:

Consumption or Investment: private spending as firms buy soft drinks for a holiday party?