UNIT+6++Economic+Growth+and+Productivity

Economic Growth and Productivity (5–10%) Textbook Chapter 25** A. Investment in human capital B. Investment in physical capital C. Research and development, and technological progress D. Growth policy
 * UNIT 6

1) The key stat used to track **//economic growth//** is. ………………………………………………(Pg187) 2) We use this stat because it separates changes in the quantity of goods and service from the effects of a rising ……………………………. ……………………………….. (pg 187). 3) The income of a typical family normally grows in proportion to per capita income T/F. (pg188) 4) Many people in the world have yet to achieve the standard of living the USA had a century ago T/F. 5) What is the **//Rule of 70//** and why do we use it. ………………………………………………………………………(Pg189). 6) LR economic growth depends almost entirely on one ingredient…………………………………………….(pg191) 7) **//Sustained economic growth//** occurs only when …………………………………………………………………..(pg191) 8)**//Productivity//** refers to....................................................................................................................................................(pg191) 9) Any large increase in **//real GDP per capita//** must be a result of increased output per……………(pg191) 10) There are three main reasons why the average USA worker today producers far more than his or her counterpart a century ago a)………………………………….b)………………………………..c)………………………......(pg191) 11) Define and give an example for a) **// Physical Capital……………………………………………………………………………………………………………………………. //** 12) Write out and explain the **// Aggregate Production Function //**……………………………………………………………..... ……………………………………………………………………………………………………………………………………………………………. …………………………………………………………………………………………………………………………………………………………… 13) To analyze economic growth, economists discovered a crucial fact about the estimated aggregate production function; it exhibits D…………. R………………….. to P………………… C………………… That is. ……………………………………………………………………………………………………………………………………………….(pg 193). 14) **// Growth accounting //** estimates………………………………………………………………………………………………(pg195) 15) Using figure8-5 explain how technological progress shifts the productivity curve…………………………… ……………………………………………………………………………………………………………………………………………………………. ……………………………………………………………………………………………………………………………………………………………. 16) **// Total Factor Productivity //** is the ……………………………………………………………………………………………(pg196) 17) Why is the increase in total factor productivity central to a county’s economic growth?……………… ………………………………………………………………………………………………………………………………………………..(pg176) 18) Kuwait’s GDP comes mainly from………………………..…..…… where’s as South Korea’s GDP mainly comes from……………………………………………………….. (pg 196) 19) Natural resources are a much less important determinant of productivity than human or physical capital for the great majority of countries T/F. (pg196) 20) The famous 1798 book “An Essay on the Principle of Population” by **// Thomas Malthus //** talked about ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………(pg196) 21) To increase the physical capital available to workers, an economy must engage in ………………………… There is two ways to do this……………………………………………….&…………………………………………………..(pg198) 22) Why is well-functioning banking system important………………………………………………………………………… ………………………………………………………………………………………………………………………………………………..(pg199) 23) Explain how a country can benefit from **// foreign investment //**……………………………………………………………… …………………………………………………………………………………………………………………………………………………(pg199) 24) An economy’s physical capital is created mainly through I…………………… s…………………… by individuals and private companies. Much of an economy’s human capital is a result of g…………. s…………… on education. Individuals mainly pay for tertiary education. The quality of education a country provides for it’s citizens has a large impact on its E……………………… G……………………. R……………… (pg 200) 25) The term **// infrastructure //**refers to …………………………………………………………………………………………………… and is important to economics because……………………………………………………………………………………………….. ………………………………………………………………………………………………………………………………………..(pg200) 26) The advance of technology is a key force behind economic growth T/F (pg200) 27) Explain **// R&D //** ………………………………………...........................................................................................................(pg200) 28) Political stability and protection of property rights are crucial ingredients in l…….. R…………… E……………….. G…………………….. . Why is this so…………………………………………………………………….. (pg201) 29) Explain the “Latin American Disappointment”............................................................................................................ ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….. 30) Explain “Africa’s trouble”…………………………………………………………………………………………………………………. …………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… 31) Explain “ the Asian Miracle”…………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….. 32) Read “economics in action” pg205-206 and write some points about this make sure you mention the **// convergence hypothesis //**. ……………………………………………………………………………………………………………………………………………………………. ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….. ………………………………………………………………………………………………………………………………………………………….. …………………………………………………………………………………………………………………………………………………………..
 * __AP ECONOMICS CHAPTER 25; Long-Run (LR) ECONOMIC GROWTH.__ **
 * // b) Human Capital……………………………………………………………………………………………………………………………… //**
 * // c) Technology… //**…………………………………………………………………………………………………………………………………