Econ 2105 Midterm 2 Chapter 12

Other things the same, a country that increases its savings rate will have...

The logic behind the catch-up effect is that?

Which of the following will increase a country's real GDP per person?

Thomas Malthus's predictions turned out to be wrong due to

Industrial machinery is an example of...? A. a factor of production that in the past was an output from the production process. B. physical capital. C. something that influences productivity. D. All of the above are correct.

Which of the following best states economists' understanding of the facts concerning the relationship between natural resources and economic growth?

Perry accumulated a lot of mathematical skills while in high school, college, and graduate school. Economists include these skills as part of Perry's. A. human capital. B. proprietary knowledge. C. technological knowledge. D. physical capital.

An economy's production function has the constant-returns-to-scale property. If the economy's labor force doubled and all other inputs stayed the same, then real GDP would A. increase by exactly 50 percent. B. stay the same. C. increase by exactly 100 percent. D. increase, but not necessarily by either 50 percent or 100 percent.

Which of the following statements is correct? A. Growth of productivity is the main determinant of growth in living standards. B. Common knowledge and proprietary technology are both important for the economy's production of goods and services. C. The terms capital and physical capital refer to the same thing. D. All of the above are correct.

"When workers already have a large quantity of capital to use in producing goods and services, giving them an additional unit of capital increases their productivity only slightly." This statement A. is an assertion that capital is subject to increasing returns. B. is made under the assumption that the quantities of human capital, natural resources, and technology are being held constant. C. represents an unconventional view of the production process. D. All of the above are correct.