Question 1

Figure 25-1 
-Refer to Figure 21-1. In what way is the figure relevant to the catch-up effect?

Accepted Answer

The answer of Figure 25-1 
-Refer to Figure 21-1. In...

Question 2

Explain the distinction between technological knowledge and human capital.

Accepted Answer

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Question 3

Figure 25-1 
-Refer to Figure 21-1. Does the figure represent the idea that the amount of capital per worker influences the amount of output per worker, or does the figure represent the idea that the amount of output per worker influences the amount of capital per worker?

Accepted Answer

The answer of Figure 25-1 
-Refer to Figure 21-1. Does...

Question 4

In the production function  
, Y represents the quantity of output; L represents the quantity of labor; K represents the quantity of physical capital; and H represents the quantity of human capital. What does N represent?

Accepted Answer

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, Y...

Question 5

Is coal a produced factor of production?

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Question 6

How does the phenomenon of diminishing returns to capital explain the catch-up effect?

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Question 7

Figure 25-1 
-Refer to Figure 21-1. In order for the figure to make sense, do we have to assume that capital is the only determinant of output? Briefly explain.

Accepted Answer

The answer of Figure 25-1 
-Refer to Figure 21-1. In...

Question 8

Figure 25-1 
-Refer to Figure 21-1. "When the amount of capital per worker increases by one unit, a poor country experiences a greater benefit than does a rich country." Does the figure illustrate this notion? Briefly explain.

Accepted Answer

The answer of Figure 25-1 
-Refer to Figure 21-1. "When...

Question 9

In the production function  
, Y represents the quantity of output; L represents the quantity of labor; K represents the quantity of physical capital; and N represents the quantity of natural resources. What does H represent?

Accepted Answer

The answer of In the production function  
, Y...

Question 10

The people of Country X save 10 percent of their income, and the people of Country Y save 25 percent of their income. If these respective saving rates persist forever, will one country or the other enjoy a higher rate of income growth forever? Explain.

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Question 11

Consider the production function  
. Suppose  
and  
. Does the production function have the property of constant returns to scale? Why or why not?

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. Suppose...

Question 12

Consider the production function  
. Suppose  
and  
. Does the production function have the property of constant returns to scale? Why or why not?

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. Suppose...

Question 13

"Market prices give no reason to believe that natural resources are a limit to economic growth." Explain this statement.

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Question 14

What term do we use to refer to the understanding of the best ways to produce goods and services?

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Question 15

Because of __________, an increase in the saving rate leads to higher growth of income and productivity only for a while.

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Question 16

What do we mean when we say that some technological knowledge is not proprietary?

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Question 17

In what sense is capital accumulation costly to a society?

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Question 18

In recent decades, economic growth has been much more rapid in South Korea than in the United States. What is the likely explanation for this fact?

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Question 19

If a production function has the property called __________, then doubling all inputs causes the amount of output to double as well.

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Question 20

What are the long-run effects on productivity and income of an increase in the saving rate?

Accepted Answer

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Quiz 25: Production and Growth

Figure 25-1 -Refer to Figure 21-1. In what way is the figure relevant to the catch-up effect?

Explain the distinction between technological knowledge and human capital.

Figure 25-1 -Refer to Figure 21-1. Does the figure represent the idea that the amount of capital per worker influences the amount of output per worker, or does the figure represent the idea that the amount of output per worker influences the amount of capital per worker?

In the production function , Y represents the quantity of output; L represents the quantity of labor; K represents the quantity of physical capital; and H represents the quantity of human capital. What does N represent?