Study sets, textbooks, questions
Upgrade to remove ads
ECON CH 12
Terms in this set (41)
A management professor discovers a way for corporate management to operate more efficiently. He publishes his findings in a journal. His findings are
common, but not proprietary, knowledge
Apple founder Steve Jobs received patents on many of his ideas. While the patents existed, his ideas were
private goods and proprietary knowledge
If a country increases its saving rate, which of the following permanently grow at a higher rate?
neither real GDP per person nor productivity
All else equal, if there are diminishing returns, then what happens to productivity if both capital and labor increase?
none of the above
Productivity is the amount of goods and services
produced for each hour of a worker's time. It is linked to a nation's economic policies.
Suppose that a country increased its saving rate. In the long run it would have
higher productivity, but another unit of capital would increase output by less than before.
physical capital, like investment in human capital, has an opportunity cost
In which of the following cases can we be certain that a natural resource has become scarcer?
the demand for the resource has increased and the supply has decreased
For a given year, productivity in a particular country is most closely matched with that country's
level of real GDP divided by hours worked over that year
If an economy with constant returns to scale were to double its physical capital stock, its available natural resources, and its human capital, but leave the size of the labor force the same,
its output and productivity would increase, but less than double
Rapid population growth
may depress economic prosperity by reducing the amount of capital which each worker has to work with.
When a society decides to increase its quantity of physical capital, the society
is in effect deciding to consume fewer goods and services in the present
is an input in the production of goods and services
The logic behind the catch-up effect is that
new capital adds more to production in a country that doesn't have much capital than in a country that already has much capital.
in some ways are like prohibiting the use of certain technologies
Countries that have lower levels of real GDP per person than the United States
in some cases have growth rates that are higher than that of the United States and in other cases lower than that of the United States.
constant returns to scale
Changing all inputs by the same percentage causes output to change by that percentage
Other things the same, which of the following could explain an increase in productivity?
either an increase in human capital or an increase in physical capital
Educational attainment tends to be
low in countries with high population growth.
According to studies using international data, an increase in the saving rate
increases the growth rate of output for several decades.
all of the above
Which of the following best describes the response of output as time passes to an increase in the saving rate?
The growth rate of output increases, but diminishes to its former level as time passes.
In which of the following cases can we be certain that a natural resource has become scarcer? (2)
the demand for the resource has decreased and the supply of the resource is unchanged
In some countries it is time consuming and costly to establish ownership of property. Reforms to reduce these costs would likely
raise real GDP and productivity
In a market economy, we know that a resource has become scarcer when
prices rise relative to others
Your company discovers a better way to produce mousetraps, but your better methods are not apparent from the mousetraps themselves. Your knowledge of how to more efficiently produce mousetraps is
prop technical knowledge
Other things the same, if a country raises its saving rate, when is growth of real GDP per person higher?
as the economy moves toward the long run, but not in the long run
Other things the same, if a country raises its saving rate, then in the long run
the level of real GDP is higher but the growth rate of real GDP is unchanged.
Which of the following is an example of a nonrenewable resource?
In the long run, an increase in the saving rate
raises the levels of both productivity and income
If the price of a good has risen over time,
it has become more scarce only if the price adjusted for inflation has risen.
Suppose over the last five years that the price of recycled aluminum increased from $800 a ton to $900 a ton. Over the same time a measure of the overall price level increased from 120 to 138. The real price of recycled aluminum
decreased, less scarce
If the number of workers in an economy doubled, all other inputs stayed the same, and there were constant returns to scale, productivity would
fall, but it would still be greater than one-half of its former value
In 2012, the imaginary nation of Platland had a population of 10,000 and real GDP of 42,000,000. During the year its real GDP per person grew by about 1.94%. Which of the following sets of growth rates is consistent with this growth in real GDP per person?
3 and 5
Which of the following can be measured by the level of real GDP per person?
the standard of living but not productivity
Nathan owns a bakery that bakes only cakes. All of his bakers work 8 hours per day. In 2011, he employed 5 bakers who produced a total of 200 cakes each day. In 2012, he employed 6 bakers who produced a total of 249 cakes each day. The bakery's productivity
Suppose Japanese-based Toshiba Corporation builds and operates a new computer factory in the United States. Future production from such an investment will
increase U.S. GDP more than it increases U.S. GNP
Technological knowledge refers to
available information on how to produce things.
In the U.S., each additional year of schooling has historically raised a person's wage on average by about
Popeye produces 20 cans of spinach in 8 hours. Wimpy produces 15 hamburgers in 10 hours. If each hamburger trades for 1.5 cans of spinach, then
Wimpy's production is greater than Popeye's, but his productivity is less
If natural resources had become scarcer, then we would expect their
prices to have risen more than inflation, but they have not
Students also viewed
ECO CHAP 4
ECON 202 CH 7
MACRO Chapter 25 - 2
Chapter 14 - Basic Tools of Finance
Sets found in the same folder
Ch. 15 Monopolies
AP Econ Chapter 25
Other sets by this creator
HSK 4 1.1
Recommended textbook solutions
Principles of Economics
N. Gregory Mankiw
Century 21 Accounting: General Journal
Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman
Statistics for Business and Economics
David R. Anderson, Dennis J. Sweeney, James J Cochran, Jeffrey D. Camm, Thomas A. Williams
Principles of Economics
N. Gregory Mankiw
Other Quizlet sets
Econ Ch.1 improved
Economics Chapter 1
economics test 1
Econ Ch. 1 Study Guide