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Review For Exam 2 Econ (got 94% in the course)

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Department
Economics
Course
ECON 2010
Professor
All Professors
Semester
Fall

Description
Review for Exam 2Chapter 71Feature of compound interest rate in GDP growthnGDP1xGDPttnanGDP1xGDP2GDPThenn72xttntbRule of 72 2GDP per person aka GDP per capita YPOPOutput per worker aka labor productivity YN Proportion of people employed over population NPOPnot employment rate its the number of people employed over population3The factors that improve productivities examples and differences For examplesa6 general factors bWays to improve technological change and human capital4Human capital Physical capital management entrepreneurship technology government policy5Definition and differences of human capital and physical capitalDefinition and differences of entrepreneurs and managers6Feature of diminishing marginal return of physical capital7How legal environment and policies improve GDP growth For examplesaTwo channels in globalization FDI FPI and their contribution to the GDP growthbProperty rights patents and copy rightscWar dCorruption8As GDP grows what factors might be ignored that reduce peoples wellbeing For exampleaLess consumption in current periodbLess leisure when GDP grows faster due to longer working hourscMore pollution if not well manageddUnequal distribution of wealthReal GDP per person equals average labor productivity YN times the share of population employedIf real GDP per person in a country equals 20000 and 40of the population is employed then the average labor productivity equals 200004XX200004The application of new technology to the production process increases average labor productivity Even technology and 6 other factors start new economic enterprises whilerun the enterprise on a daytoday basisentrepreneurs managers entrepreneur contribute to increase average labor productivity in each of the following ways EXCEPTA introducing new production methodsB implementing new technology processC developing new productsD Assigning works to jobsManager does thisHuman capitalthe talents training and education of workers NOT the factories and machinery used by humans in production that is physical capital not the financial resources available and not the factories and machines made by humanswhich of the following is an example of an investment in human capital A a form replaces manually controlled production with a computercontrolled processB a firm pays for workers to take college classesC a chemical firms supports research to develop new chemicalsD a firm purchases new equipment for a manufacturing processsuppose that the sharer of the population employed in country B is 50 percent and that the countries B and C have the same real GDP per capita Based on the information in the table what share of country Cs population must be employedA 100 mil pop2000 average labor productivity
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