ECON 1202 Lecture Notes - Lecture 13: Human Capital

*********The best answer plus points will go to the person who answers the questions correctly^^^^^ Please provide an explanation to answers..

Which one of the following statements is correct?

A. A. Most production possibilities curves illustrate decreasing marginal opportunity costs.

B. B. Relative scarcity is no longer a central idea in economics because we are in an age of abundance.

C. C. The production possibilities curve shows society's preferences for consumer goods relative to capital goods.

D. D. The central concept underlying the production possibilities curve is that of limited resources.

A government subsidy to the producers of a product:

A. A. reduces product supply.

B. B. increases product demand

C. C/ increases product supply.

D. D/ reduces product demand.

If the price of DVD players decreases, we can expect that the demand for DVDs will:

a. A. increase.

b. B. be unaffected.

c. C/ shift left.

decD. Decrease

Which of the following is assumed in constructing a typical production possibilities curve?

a. the economy is engaging in international trade.

b. production technology is fixed.

c. the economy is using its resources inefficiently.

d. resources are perfectly shiftable (equally efficient) among alternative uses.

A system of private property rights

A. A.enhances economic growth by creating incentives to the Fed to maintain stable prices.

B. B. enhances economic growth by increasing the probability that a person can gain from making investments today.

C. C. retards economic growth by serving the interests of the wealthy only.

D. D. retards economic growth by limiting the options of people who own nothing.

An increase in growth rates will cause the production possibilities curve to

a. A. shift inward.

b. B. become steeper.

c. C. become flatter.

D. d. shift outward.

If population growth is greater than the growth of real output,

A. A. real per capita Gross Domestic Product (GDP) growth will be less than the growth of real Gross Domestic Product (GDP).

B. B. the production possibilities curve is shifting to the left.

C. C. real per capita Gross Domestic Product (GDP) growth will be greater than the growth of real Gross Domestic Product (GDP).

D. D. real per capita Gross Domestic Product (GDP) and real Gross Domestic Product (GDP) will be growing at the same rate.

In general, economists have found that as nations' levels of per capita real Gross Domestic Product (GDP) increase,

A. A. the rate of population growth declines.

B. B. the rate of population growth experiences dramatic increases.

C. C. there is no effect on population growth.

D. D. the rate of population growth increases at the same rate as economic growth.

1) Economic growth

a) China has had a much faster growth rate than America for the past 30 years. However, in terms of GDP per capita, they might not ever catch up (or maybe they will). Comment on this and in your answer use the factors of growth.

b) It has been said that America has adopted an economic policy where we wait around for the next technological advancement. During this time our GDP growth rate increases. When we are in between periods of technological discoveries our GDP growth rate slows down. What could we do to ensure more constant economic growth?

c) Is technology responsible for destroying jobs. Think about your own life and the economy around you. How many jobs do you see that have been replaced by technology? Are there as many job opportunities as in your parents' day?

Question 3

According to Joseph Schumpeter, the theory of creative destruction describes a process by which

Question 4

Which of the following countries had the highest GDP per capita in 2012?

Question 5

________ save a ________ of their income. This ________ capital in their economy and raises economic growth.

Question 6

The demand for loanable funds is determined by the willingness of ________ to borrow money to engage in new investment projects.

A

Question 7

The U.S. economy has been more stable since 1950.

True

False

Question 8

When the economy reaches a trough in a business cycle, which of the following will occur?

Question 9

In a closed economy, what is the relationship between saving and investment?

Question 10

The per-worker production function shows the relationship between ________ per hour worked and ________ per hour worked, holding ________ constant.

Question 11

New growth theory states that increases in ________ capital will result in ________ at the ________ level.

Question 12

Which of the following is not a reason why the Industrial Revolution occurred when and where it did?

Question 13

Growth in real GDP per capita for the world economy was greatest during

Question 14

Which of the following is a normative statement about economic growth?

Question 15

The effect of a recession on a company like Whirlpool Corporation is such that

Question 16

For the recessions in the United States since the 1950s,

Question 17

You are an economic advisor to the president. You are asked to recommend a policy to promote long-term economic growth in the economy. Which of the following policies would you choose?

Question 18

In comparison to a government that runs a balanced budget, when the government runs a budget deficit,

Question 19

If labor productivity growth slows down in a country, this means that the growth rate in ________ has declined.

Question 20

Policies to promote growth by increasing saving and investment work through