Page 21
102.
(Figure: Technological Progress and Productivity Growth) Use Figure: Technological
Progress and Productivity Growth. If there is a significant increase in human capital per
worker (all other factors remaining unchanged), it is BEST indicated by a move from:
A)
A to B.
B)
B to A.
C)
C to B.
D)
B to C.
103.
(Figure: Technological Progress and Productivity Growth) Use Figure: Technological
Progress and Productivity Growth. If there is an increase in physical capital per worker
(all other factors remaining unchanged), it is BEST indicated by a move from:
A)
A to B.
B)
B to A.
C)
C to B.
D)
B to C.
104.
(Figure: Technological Progress and Productivity Growth) Use Figure: Technological
Progress and Productivity Growth. If there is significant technological progress (all
other factors remaining unchanged), it is BEST indicated by a move from:
A)
A to B.
B)
B to A.
C)
C to B.
D)
B to C.
105.
Growth accounting enables us to:
A)
calculate how long it takes the economy to grow.
B)
calculate the effects of technological progress on economic growth.
C)
compare growth rates across countries.
D)
better calculate real GDP per capita.
106.
An increase in capital stock would:
A)
shift the production function upward.
B)
cause a movement to the left along a stationary production function.
C)
shift the production function downward.
D)
cause a movement to the right along a stationary production function.
Page 22
107.
Which of the following would shift the production function upward?
A)
an increase in the price of oil
B)
an improvement in technology
C)
a decrease in the supply of labor
D)
a decline in the birth rate
108.
The aggregate production function measures productivity as:
A)
real GDP per worker.
B)
nominal GDP per worker.
C)
median income per worker.
D)
average disposable income.
109.
The aggregate production function exhibits _____ returns to _____ capital.
A)
increasing; physical
B)
decreasing; physical
C)
constant; physical
D)
increasing; financial
110.
The economy has grown by 4% per year over the past 30 years. During the same period,
the labor force has grown by 1% per year and the quantity of physical capital has grown
by 5% per year. Each 1% increase in physical capital per worker is estimated to increase
productivity by 0.4%. Assume that human capital has not changed during the past 30
years. What is the growth rate of productivity?
A)
5%
B)
4%
C)
3%
D)
1.6%
111.
The economy has grown by 4% per year over the past 30 years. During the same period,
the labor force has grown by 1% per year and the quantity of physical capital has grown
by 5% per year. Each 1% increase in physical capital per worker is estimated to increase
productivity by 0.4%. Assume that human capital has not changed during the past 30
years. How fast has physical capital per worker grown?
A)
5%
B)
4%
C)
3%
D)
2%
112.
The economy has grown by 4% per year over the past 30 years. During the same period,
the labor force has grown by 1% per year and the quantity of physical capital has grown
by 5% per year. Each 1% increase in physical capital per worker is estimated to increase
productivity by 0.4%. Assume that human capital has not changed during the past 30
years. How much has growing physical capital per worker contributed to productivity
growth?
A)
6%
B)
5.4%
C)
2%
D)
1.6%
113.
The economy has grown by 4% per year over the past 30 years. During the same period,
the labor force has grown by 1% per year and the quantity of physical capital has grown
by 5% per year. Each 1% increase in physical capital per worker is estimated to increase
productivity by 0.4%. Assume that human capital has not changed during the past 30
years. How much has growing physical capital per worker contributed as a percentage
of total productivity growth?
A)
80%
B)
53%
C)
30%
D)
9%
114.
The economy has grown by 4% per year over the past 30 years. During the same period,
the labor force has grown by 1% per year and the quantity of physical capital has grown
by 5% per year. Each 1% increase in physical capital per worker is estimated to increase
productivity by 0.4%. Assume that human capital has not changed during the past 30
years. How much has technological progress contributed to productivity growth?
A)
1.4%
B)
1.6%
C)
2%
D)
3%
115.
The economy has grown by 4% per year over the past 30 years. During the same period,
the labor force has grown by 1% per year and the quantity of physical capital has grown
by 5% per year. Each 1% increase in physical capital per worker is estimated to increase
productivity by 0.4%. Assume that human capital has not changed during the past 30
years. How much has technological progress contributed as a percentage of productivity
growth?
A)
20%
B)
47%
C)
53%
D)
91%
Page 24
116.
Which country is NOT characterized by abundant farmland and mineral deposits?
A)
the United States
B)
Canada
C)
Argentina
D)
Japan
117.
In 1798, the English economist Thomas Malthus predicted that:
A)
countries with a large supply of natural resources would always enjoy economic
growth.
B)
the recently independent United States would rejoin the British empire out of
economic necessity.
C)
the French Revolution would improve the economies of most European countries.
D)
rising population growth would cause productivity per capita to fall.
118.
According to Thomas Malthus’s work, which statement is TRUE?
A)
As population grows, so will output per worker.
B)
The amount of capital per worker will fall.
C)
Technology could be counted on to increase output per worker.
D)
The amount of land per worker will eventually decline.
119.
In 1798, the Essay on the Principle of Population was published by:
A)
Adam Smith.
B)
Karl Marx.
C)
Thomas Malthus.
D)
David Ricardo.
120.
The fundamental argument in the Essay on the Principle of Population was that
improvements in technology or increases in physical capital would lead to only
temporary improvements in productivity because they would always be offset by:
A)
rising human capital demands.
B)
falling land values.
C)
the pressure of rising population and more workers on the supply of land.
D)
falling birthrates.
121.
Natural resources are:
A)
more important determinants of productivity today than ever before.
B)
the reason behind the fast development of countries like Japan.
C)
the reason behind the slow development of countries like Nigeria.
D)
less reliable indicators of productivity today than they were a century ago.
Page 25
122.
The main source of Kuwait’s wealth is _____, while the main source of Germany’s
wealth is _____.
A)
oil; manufacturing
B)
manufacturing; oil
C)
tourism; manufacturing
D)
information technology; tourism
123.
Before the twentieth century, the MOST important determinant of productivity was:
A)
technology.
B)
natural resources.
C)
physical capital.
D)
human capital.
124.
In the long run, an increase in saving will generally:
A)
reduce the rate of economic growth.
B)
leave the rate of economic growth unchanged.
C)
increase the rate of economic growth.
D)
increase consumption simultaneously.
125.
Economic growth is likely to entail:
A)
a reduction in investment.
B)
a decrease in the capital stock.
C)
higher saving.
D)
lower saving.
126.
All else equal, a nation that has a high rate of _____ will have a high rate of _____ and
therefore a high growth rate of _____ capital.
A)
investment; savings; human
B)
savings; investment; natural
C)
savings; investment; physical
D)
savings; consumption; physical
127.
The sources of funds for investment spending are:
A)
savings by households, government, and foreigners.
B)
taxes and transfer payments.
C)
always equal to U.S. spending on imports.
D)
directed to their most productive uses by the U.S. government.
Page 26
128.
Technological progress is advanced through:
A)
research and development.
B)
government regulation.
C)
consumption.
D)
infrastructure.
129.
A country’s growth rate strongly depends on how it has invested in its physical capital.
Generally, countries that have used _____ as a source of their capital investment have
exhibited the highest growth rate.
A)
foreign direct investment
B)
domestic saving
C)
foreign portfolio investment
D)
contracted globalization
130.
In 1820, Mexico had a higher real GDP per capita than did Japan. Yet now Japan is one
of the richest countries in the world and Mexico is poor. Japan’s high rate of economic
growth can likely NOT be explained by a high:
A)
investment in physical capital.
B)
investment in human capital.
C)
investment in technological progress.
D)
level of government interference.
131.
Economies with high growth rates tend to be those that increase their:
A)
government regulation.
B)
human capital.
C)
consumption.
D)
resources.
132.
Economists believe that the BEST way to stimulate investment in physical capital is to
encourage:
A)
higher rates of investment in human capital.
B)
more spending on infrastructure.
C)
the conservation of natural resources.
D)
higher rates of national saving.
Page 27
133.
In 1820, Mexico had a higher real GDP per capita than did Japan, but today Japan’s real
GDP per capita is higher than is Mexico’s because Japan’s real GDP per capita has
grown at _____, and Mexico’s real GDP per capita has grown at _____.
A)
1.9%; 1.3%
B)
1.9%; 1.9%
C)
1.3%; 1.9%
D)
1.3%; 1.3%
134.
In the 1960s, Japan was the fastest-growing major economy, and it also:
A)
spent a smaller share of its GDP on investment goods than did other major
economies.
B)
spent a larger share of its GDP on investment goods than did other major
economies.
C)
spent more of its GDP on national defense than did any other country, except for
China.
D)
was the first Asian country to join the European Union.
135.
Today, China is the fastest-growing major economy, and it also:
A)
spends a lower share of its GDP on investment goods than do other major
economies.
B)
spends a higher share of its GDP on investment goods than do other major
economies.
C)
spends more of its GDP on national defense than does any other country, except for
North Korea.
D)
was the first Asian country to join the European Union.
136.
Which sources provide funds for investment spending?
I. domestic savings
II. foreign savings
III. consumption
A)
I only
B)
II only
C)
I and II only
D)
I, II, and III
137.
Who established the first research and development laboratory?
A)
Galileo
B)
Thomas Edison
C)
Thomas Malthus
D)
Franklin Roosevelt
Page 28
138.
Roads, telephone lines, power facilities, and schools are examples of a nation’s:
A)
technostructure.
B)
infrastructure.
C)
physiostructure.
D)
sociostructure.
139.
Ireland’s recent economic growth and improving living standard are due primarily to:
A)
its refusal to join the European Union and abandon its own currency for the euro.
B)
the capture and imprisonment of Sinn Fein leader Gerry Adams.
C)
the large number of immigrants from Eastern Europe.
D)
an excellent physical and human infrastructure, including a good education system,
airports, telecommunications, and shipping facilities.
140.
From the standpoint of economic growth, banks are important to:
A)
fight inflation.
B)
keep interest rates low.
C)
channel savings into investment.
D)
channel investment into savings.
141.
Which item CANNOT properly be called a part of infrastructure?
A)
power lines
B)
roads and bridges
C)
human capital
D)
seaports
142.
A government policy that does NOT promote economic growth is:
A)
building infrastructure and providing public goods.
B)
implementing a monetary policy that increases inflation.
C)
subsidizing education.
D)
providing political stability and protecting property rights.
143.
Infrastructure includes:
A)
the water supply system.
B)
government bonds.
C)
corporate stock.
D)
household savings.
Page 29
144.
Infrastructure does NOT include:
A)
roads.
B)
iron ore deposits.
C)
power plants.
D)
cell phone towers.
145.
Ireland’s recent economic growth and improving living standard are NOT due to:
A)
a good education system.
B)
airports.
C)
telecommunications.
D)
a more open election process.
146.
Which institution(s) is/are important for channeling savings into investment?
A)
schools
B)
religious institutions
C)
banks
D)
the federal government
147.
Which item can properly be called a part of infrastructure?
A)
robots on an assembly line
B)
professors
C)
the Golden Gate bridge
D)
a Broadway show
148.
Which government policy promotes economic growth?
A)
building infrastructure and providing public goods
B)
implementing a monetary policy that increases inflation
C)
implementing a fiscal policy that increases inflation
D)
increasing the interest rate charged on student loans
149.
Infrastructure includes:
A)
New York City’s public transportation system.
B)
corporate bonds.
C)
private equity firms.
D)
the water supply system, government bonds, and corporate stock.
Page 30
150.
Among the public goods important for economic growth is/are:
A)
publicly held companies like Ford.
B)
political stability.
C)
public regulation of businesses.
D)
low taxes.
151.
Among the factors that are important for economic growth are:
A)
property rights.
B)
growth accounting.
C)
natural resources.
D)
convergence.
152.
Government spending is NOT like investment when it:
A)
goes to help pay for education.
B)
helps provide infrastructure for the economy.
C)
is used for public health measures.
D)
is used for a personal income tax rebate.
153.
Long-run economic growth is:
A)
higher in countries with a weak rule of law and excessive government intervention.
B)
lower in countries with a strong government and independent judiciary.
C)
lower in countries whose courts enforce property rights and whose government
protects its citizens.
D)
higher in countries with a strong rule of law and political stability.
154.
The role of the government can explain growth differences among countries. A
government action that does NOT contribute to growth is:
A)
an active role in building infrastructure.
B)
significant cost sharing for higher education.
C)
excessive intervention in business practices and licensing.
D)
emphasis on research and development projects.
155.
It took India more than 40 years to exhibit high economic growth after it gained
independence from British rule in 1947. This faster rate of growth resulted from:
A)
a more stable government.
B)
better infrastructure.
C)
higher investment in human capital.
D)
a reduction in the burden of corruption.
Page 31
156.
Which factor may lead to lower productivity because of a lack of incentives?
A)
a stable political system
B)
protection of property rights
C)
government subsidies
D)
public education
157.
Economies with high growth rates tend to be those that have:
A)
large amounts of natural resources.
B)
a stable government that protects property rights.
C)
high levels of government regulation.
D)
a large defense budget.
158.
One factor frequently cited for slow growth in India until the 1990s is:
A)
reliance on the drug trade.
B)
too little government intervention in the economy.
C)
dependence of foreign capital flows.
D)
corruption among government officials.
159.
When the government invests in building roads, ports, and a reliable power grid, it is
investing in a nation’s:
A)
private property.
B)
human capital.
C)
technological progress.
D)
infrastructure.
160.
When the government invests resources in a nation’s educational system, it is investing
in:
A)
private property.
B)
human capital.
C)
political stability.
D)
infrastructure.
161.
Which factor contributes to economic development?
A)
low saving and investment rates
B)
a command socialist economic system
C)
investment in infrastructure
D)
complete absence of government involvement
Page 32
162.
The main reason South Korea has grown so rapidly is that, because it was so poor:
A)
it could take advantage of international financial aid for poor countries.
B)
people left to go to more prosperous countries.
C)
it could skip forward, or leapfrog, to use new-generation technology as it
developed.
D)
it could import highly trained engineers from other countries.
163.
Since the 1960s, nations like South Korea have been a part of the so-called East Asian
economic miracle because:
A)
high rates of human capital growth have offset slow savings rates.
B)
of high rates of national savings that offset the slower rate of technological
progress.
C)
of high savings rates, greater quantities of physical capital per worker, and slower
growth of human capital.
D)
of the combination of rapid technological progress, high savings rates, and rapid
improvement in human capital.
164.
The convergence hypothesis helps explain why:
A)
highly educated people converge in high-income countries.
B)
high-income individuals marry other high-income individuals.
C)
high-income countries continue their high growth rates.
D)
the income of high-income and lower-income countries get closer.
165.
The idea that relatively poor nations should have higher rates of growth of real GDP per
capita than relatively rich nations is known as the:
A)
East Asian miracle.
B)
Industrial Revolution.
C)
sustainable development hypothesis.
D)
convergence hypothesis.
166.
The convergence hypothesis states that international differences in real GDP per capita
tend to _____ over time.
A)
diverge
B)
fluctuate
C)
remain constant
D)
narrow
Page 33
167.
The reasons for which the East Asian countries have exhibited tremendous economic
growth during the past 40 years do NOT inlcude:
A)
a significant increase in physical capital per worker made possible by very high
rate of saving.
B)
a significant increase in human capital made possible by very good basic
education.
C)
a substantial achievement in technological progress.
D)
intervening governments with lots of regulations.
168.
The convergence hypothesis says that:
A)
differences in real GDP per capita among countries tend to narrow over time.
B)
differences in real GDP per capita among countries tend to increase over time.
C)
differences in real GDP per capita do not have much effect on living standards in
the long run.
D)
aggregate production functions in different countries will all be the same in the
long run.
169.
The convergence hypothesis says that international differences in GDP per capita tend
to _____ over time.
A)
narrow
B)
expand
C)
remain steady
D)
narrow and then expand
170.
According to the convergence hypothesis, differences in real GDP per capita among
countries tends to narrow over time because countries that start with a _____ real GDP
per capita tend to have _____ growth rates.
A)
lower; higher
B)
lower; lower
C)
higher; higher
D)
higher; negative
171.
Which factor has contributed to the lack of economic growth in Latin America?
I. lack of natural resources
II. high rates of savings that led to insufficient consumption of goods and services
III. political instability
A)
I only
B)
II only
C)
III only
D)
I, II, and III
Page 34
172.
Which factor has contributed to the lack of economic growth in Latin America?
I. low rates of savings and investment
II. low value on education
III. political instability
A)
I only
B)
II only
C)
III only
D)
I, II, and III
173.
Throughout the twentieth century, nations in Latin America had disappointing growth
rates primarily due to:
A)
low rates of national savings, political instability, and little emphasis on education.
B)
low rates of investment in physical capital that offset a strong emphasis on
education.
C)
abundant natural resources, rapid technological progress, and political instability.
D)
low rates of national savings, a scarcity of natural resources, and political
instability.
174.
In the 1980s, which factor contributed to slow growth in Latin America countries?
A)
reliance on the drug trade
B)
excessive government intervention in the economy
C)
an overly high birth rate
D)
excessive reliance on the United States for foreign trade
175.
Which reason is one that can explain Latin America’s lack of economic growth since
1920?
A)
overspending on education
B)
inability to compete with imported products
C)
low savings and investment spending because government policies led to inflation,
bank failures, and other disruptions
D)
very poor natural resources
176.
Reasons for the economic stagnation of Latin America during the last century do NOT
include:
A)
irresponsible government policies that fueled high levels of inflation.
B)
low rates of savings.
C)
lack of public support for education.
D)
excessively large flows of foreign investment.
Page 35
177.
Reasons for which Latin American growth since the 1920s has been relatively slow do
NOT include:
A)
a lack of savings to finance investment.
B)
a lack of a solid education system.
C)
a lack of political stability.
D)
U.S. intervention.
178.
The key factor explaining the poor growth performance in Africa is probably:
A)
lack of domestic political stability.
B)
lack of natural resources.
C)
overpopulation.
D)
the prevalence of military conflicts among neighboring countries.
179.
Sub-Saharan Africa is so poor mainly because:
A)
settlers from Europe own all of the land.
B)
the diamond merchants took all of the money away to other countries.
C)
of political instability and civil wars.
D)
all of the bright people move to other countries.
180.
Economic growth in sub-Saharan Africa has been dismal. Which factor is NOT a reason
for Africa’s problem?
A)
stable governments
B)
government corruption
C)
a lack of property rights
D)
a lack of infrastructure
181.
Between 1980 and 1994, real per capita GDP in sub-Saharan Africa:
A)
fell by 13%.
B)
fell by 50%.
C)
increased by 10%.
D)
increased by 7% per year.
182.
Which factor has contributed to the lack of economic growth in Africa?
I. political instability
II. lack of spending on education and infrastructure
III. malnutrition and disease
A)
I only
B)
II only
C)
III only
D)
I, II, and III
Page 36
183.
The convergence hypothesis is:
A)
wrong because Latin American and African countries have not been able to grow.
B)
not wrong, but education, infrastructure, and the rule of law are not equal among
nations.
C)
not wrong, but because poorer nations are involved in so many destabilizing
incidents like wars, disease, and famines, they will never be able to catch up with
the rest of the world.
D)
wrong because the income of poorer nations seems to get worse over time and the
income of richer nations gets better.
184.
Conditional convergence suggests that poorer countries:
A)
are still catching up to richer countries.
B)
have GDPs that may not catch up to those of richer countries without changes in
education and infrastructure.
C)
have growth rates that are dependent on their ties to a richer country.
D)
have growth rates that are dependent on their birth rates.
185.
The convergence hypothesis fits the data only when the factors that affect growth are
held equal across countries. These factors do NOT include:
A)
education.
B)
infrastructure.
C)
favorable policies and institutions.
D)
GDP per capita.
186.
Which factor is NOT necessary for convergence between two countries?
A)
equal access to education
B)
equal access to infrastructure
C)
a common language between the two countries
D)
similar levels of political stability
187.
Convergence is MOST likely between:
A)
Mexico and Ghana.
B)
France and Germany.
C)
Brazil and the United Kingdom.
D)
Mexico and Ghana or Brazil and the United Kingdom.
Page 37
188.
Long-run growth is sustainable if:
A)
it can continue in the face of limited natural resources and the impact of growth on
the environment.
B)
people continue to buy enough goods and services.
C)
energy prices are low.
D)
environmental concerns are ignored during global recessions.
189.
Long-run economic growth will be sustainable:
A)
because pollution and urban sprawl are not real problems.
B)
because there are plenty of natural resources left to be consumed in the future.
C)
if it can continue in spite of the limited supply of natural resources and the impact
of growth on environment.
D)
because the natural resource scarcity and other environmental issues are not really
as serious as they seem.
190.
Thomas Malthus:
A)
was President Reagan’s primary economic adviser.
B)
successfully predicted the nationalization of the insurance company AIG.
C)
predicted that limited land supplies would prevent large increases in real incomes
per capita.
D)
wrote The Limits to Growth in 1972.
191.
In the book The Limits to Growth, The Club of Rome argued that:
A)
free trade could make world growth sustainable.
B)
the World Bank needed to establish a global currency.
C)
the convergence hypothesis was invalid.
D)
limited supplies of natural resources made long-run growth unsustainable.
192.
Economists are optimistic that growth can continue in the face of resource scarcity
because:
A)
the oil industry vastly understates the level of oil reserves.
B)
prices of scarce resources fall and provide incentives to use more of those
resources.
C)
prices of scarce resources rise and provide incentives to find alternative energy
sources.
D)
resource scarcity no longer limits economic growth.
Page 38
193.
In general, the growth in real GDP per capita in the U.S.:
A)
was smaller than the growth of per capita oil consumption before 1973.
B)
fluctuated above and below the growth of per capita oil consumption before 1973.
C)
was greater than the growth of per capita oil consumption after 1973.
D)
was smaller than the growth of per capita oil consumption after oil prices began to
increase in 2004.
194.
During the 1990s in the U.S.:
A)
high oil prices encouraged consumers to buy small, fuel-efficient cars.
B)
low oil prices encouraged consumers to buy large cars and SUVs that were
generally not fuel-efficient.
C)
high oil prices encouraged the development of alternative energy sources.
D)
low oil prices led to decreases in real GDP.
195.
Written in 1972, the book that argued that long-run economic growth was not
sustainable because of limited supplies of natural resources was called:
A)
An Essay on the Principle of Population.
B)
The Limits to Growth.
C)
The Wealth of Nations.
D)
Aftershock: The Next Economy and America’s Future.
196.
Between 1973 and the early 1990s, consumers responded to:
A)
low oil prices by buying large cars, trucks, and SUVs that were not fuel-efficient.
B)
low oil prices by using other types of energy.
C)
high oil prices by buying small, fuel-efficient cars.
D)
high oil prices by agreeing to cap-and-trade policies to limit the use of oil.
197.
Greenhouse gas emissions are an example of a:
A)
negative externality.
B)
public good.
C)
positive externality.
D)
private good.
198.
Economists mostly agree that the problem of climate change necessitates government
action in the form of market-based incentives such as:
A)
tax rebates to those causing negative externalities.
B)
a reduction in the amount of gasoline that each person is allowed to purchase.
C)
a carbon tax or a cap and trade system.
D)
a reduction in the price of green cars and appliances.
Page 39
199.
The biggest global environment issue is:
A)
the impact of fossil-fuel consumption on the world’s climate.
B)
the availability of coal.
C)
how to determine who has the property rights to wind power.
D)
how to extract oil from Canadian tar sands.
200.
As a limit to economic growth, environmental problems are more difficult to solve than
resource problems because:
A)
environmental problems don’t automatically provide incentives for changed
behavior.
B)
resource problems don’t automatically provide incentives for changed behavior.
C)
the opportunity cost of solving environmental problems in terms of GDP sacrificed
is larger.
D)
most scientists haven’t determined the relationship between greenhouse gas
emissions and climate change.
201.
A negative externality is:
A)
not as costly as a positive externality.
B)
a cost that individuals or firms impose on others without having to pay
compensation.
C)
immune to economic incentives.
D)
an unavoidable consequence of budget deficits.
202.
A cap and trade system:
A)
reduces climate change by requiring individuals and firms to buy licenses to emit
greenhouse gases.
B)
encourages fair trade by limiting the amount of many vegetables that can be
imported from Mexico.
C)
was used in nineteenth-century England to limit coal consumption.
D)
exempts Chinese imports from Food and Drug Administration regulations.
203.
Economists generally agree that _____ are the BEST way for governments to reduce
greenhouse gases to address climate change.
A)
military actions
B)
market-based incentives
C)
direct pollution controls
D)
subsidies for offshore oil exploration
204.
In Techland, from 1980 to 2010, holding technology and human capital fixed,
increasing physical capital per worker from $25,000 to $100,000 would have led to a
doubling of real GDP per worker, from $40,000 to $80,000. However, not only did
physical capital per worker increase from $25,000 to $100,000, but technological
progress shifted the productivity curve upward so that real GDP per worker actually
increased from $40,000 to $320,000. What was the annual growth rate of real GDP per
capita in Techland?
A)
2.0%
B)
4.5%
C)
7%
D)
17.5%
205.
In Techland, from 1980 to 2010, holding technology and human capital fixed,
increasing physical capital per worker from $25,000 to $100,000 would have led to a
doubling of real GDP per worker, from $40,000 to $80,000. However, not only did
physical capital per worker increase from $25,000 to $100,000, but technological
progress shifted the productivity curve upward so that real GDP per worker actually
increased from $40,000 to $320,000. What share of the annual growth rate of real GDP
per capita was attributable to increasing physical capital per worker?
A)
2.0%
B)
4.5%
C)
8.75%
D)
17.5%
206.
In Techland, from 1980 to 2010, holding technology and human capital fixed,
increasing physical capital per worker from $25,000 to $100,000 would have led to a
doubling of real GDP per worker, from $40,000 to $80,000. However, not only did
physical capital per worker increase from $25,000 to $100,000, but technological
progress shifted the productivity curve upward so that real GDP per worker actually
increased from $40,000 to $320,000. What share of the annual growth rate of real GDP
per capita was attributable to higher total factor productivity?
A)
2.0%
B)
5%
C)
8.75%
D)
6.5%