Question 1

Growth accounting refers to the method used to

Accepted Answer

Growth accounting is a method used to identify the contributions of different factors to economic growth. These factors include increases in capital, labor, and technological progress. The method is used to quantify the relative contributions of each factor to overall economic growth over a specific period of time. Therefore, option A is the correct answer. Option B is incorrect because it refers to intergenerational equity rather than growth accounting. Option C and D are also incorrect because they respectively refer to the measurement of labor force growth and capital stock growth rather than growth accounting.

Question 2

Recall the Application about growth in China and India to answer the following question(s). From 1978 to 2004, China grew at a rate of 9.3 percent per year and India grew at a rate of 5.4 percent per year.
-According to this Application, China's growth rate was faster than India's during this 26 year period because

Accepted Answer

The application states that China grew at a rate of 9.3 percent per year due to its investments in physical capital, while India grew at a slower rate of 5.4 percent per year. Therefore, choice B is the correct answer.

Question 3

In terms of technological progress, economists interpret this as meaning an economy operates more efficiently by producing more output without using any more inputs.

Accepted Answer

This is a common interpretation of technological progress in economics, as it allows for increased productivity without requiring additional resources or inputs.

Question 4

Recall the Application about growth in China and India to answer the following question(s). From 1978 to 2004, China grew at a rate of 9.3 percent per year and India grew at a rate of 5.4 percent per year.
-According to this Application, China's GNP per capita and India's GDP per capita are ________ U.S. GNP per capita.

Accepted Answer

The Application states that in 2004, China's GNP per capita was $1,700 and India's GDP per capita was $730, which are still significantly less than the U.S. GNP per capita. Thus, option (B) is the best choice.

Question 5

Suppose the growth rate of GDP in the United States is 4.2 percent. If 1.1 percent and 1.4 percent of GDP growth are due, respectively, to capital and labor growth, the amount resulting from technological progress is

Accepted Answer

If 1.1% and 1.4% of the GDP growth is due to capital and labor growth then the remaining 4.2% - (1.1% + 1.4%) = 1.7% must be due to technological progress. Therefore, the answer is D) 1.7 percent.

Question 6

Recall the Application about predicting future economic growth to answer the following question(s).
-According to economist Robert Gordon, major innovations in the United States have been concentrated in ________ waves of growth.

Accepted Answer

Economist Robert Gordon suggests that major innovations in the United States have been concentrated in three waves of growth.

Question 7

According to the method of growth accounting, which of the following contribute to economic growth?

Accepted Answer

According to the growth accounting method, economic growth can be attributed to changes in capital, labor, and technology (also known as total factor productivity). Therefore, all of the choices A, B, and C contribute to economic growth.

Question 8

Technological progress means that we produce more output with the same amount of inputs.

Accepted Answer

Technological progress allows for more efficient use of resources, resulting in increased output with the same inputs.

Question 9

Recall the Application about predicting future economic growth to answer the following question(s).
-According to this Application, Professor Gordon is ________ about future economic growth in the United States and he predicts a ________ increase during this century.

Accepted Answer

According to the Application, Professor Gordon is pessimistic about future economic growth in the United States and he predicts a small increase during this century.

Question 10

An event that allows the economy to operate more efficiently by producing more outputs without using any more inputs is referred to as

Accepted Answer

This type of event is known as technological progress, as it involves improvements in technology or processes that allow for increased production without requiring additional inputs or resources.

Question 11

Which of the following is NOT an example of technological progress?

Accepted Answer

Technological progress refers to the development and advancement of technology. Option B is the only choice that does not involve technology but rather a favorable weather condition leading to an increase in crop production. The other options all involve the development or improvement of technology.

Question 12

Recall the Application about predicting future economic growth to answer the following question(s).
-According to this Application, other economists disagree with Professor Gordon and suggest that the ________ will help to increase future growth.

Accepted Answer

The Application suggests that other economists disagree with Professor Gordon and believe that computer technology, global interconnectedness, and the Internet will all help to increase future economic growth.

Question 13

Which of the following is NOT an example of technological progress?

Accepted Answer

An increase in labor supply as a result of population growth is not an example of technological progress, but rather a demographic and economic phenomenon. The other choices involve advancements in technology and innovation.

Question 14

Technological innovations are not necessarily major scientific breakthroughs.

Accepted Answer

Technological innovations can also be improvements or modifications of existing technology rather than completely new scientific discoveries.

Question 15

The contribution to output growth of technological progress is estimated by how much of the output growth can be explained by the growth in inputs.

Accepted Answer

The statement is incorrect. The contribution to output growth of technological progress is estimated by how much of the output growth cannot be explained by the growth in inputs.

Question 16

Suppose the growth rate of GDP in the United States is 4.2 percent. If 2.9 percent and 1.3 percent of GDP growth are due, respectively, to capital and labor growth, the amount resulting from technological progress is

Accepted Answer

The answer of Suppose the growth rate of GDP in...

Question 17

Labor productivity is defined as

Accepted Answer

Labor productivity is defined as output per hour of work, which means how much output is produced per unit of time that an employee spends working. It is frequently used as a measure of organizational efficiency and economic growth.

Question 18

Recall the Application about growth in China and India to answer the following question(s). From 1978 to 2004, China grew at a rate of 9.3 percent per year and India grew at a rate of 5.4 percent per year.
-According to this Application, based on the analysis of the sources of growth in China and India, and assuming that nothing changes, it can be concluded that

Accepted Answer

The application states that China's growth is fueled by investment and technology while India's growth is fueled by increases in productivity and efficiency. Over the long term, investment and technology become less effective means of sustainable growth, while productivity gains and efficiency are more enduring. Therefore, India's long-term growth prospects are not as strong as those for China.

Question 19

Which of the following is an example of technological progress?

Accepted Answer

All of the options listed represent examples of technological progress. Option A shows the advancement in genetic engineering technology that has led to an increase in crop yield. Option B and C are both examples of new inventions that have advanced technology for comfort and entertainment, respectively.

Question 20

Technological progress can be another mechanism which affects economic growth.

Accepted Answer

Technological progress can lead to new inventions, new products, and more efficient methods of production, which can increase productivity and economic growth.

Quiz 13: Why Do Economies Grow

Growth accounting refers to the method used to

In terms of technological progress, economists interpret this as meaning an economy operates more efficiently by producing more output without using any more inputs.

Suppose the growth rate of GDP in the United States is 4.2 percent. If 1.1 percent and 1.4 percent of GDP growth are due, respectively, to capital and labor growth, the amount resulting from technological progress is

Recall the Application about predicting future economic growth to answer the following question(s) . -According to economist Robert Gordon, major innovations in the United States have been concentrated in ________ waves of growth.

According to the method of growth accounting, which of the following contribute to economic growth?

Technological progress means that we produce more output with the same amount of inputs.

Recall the Application about predicting future economic growth to answer the following question(s) . -According to this Application, Professor Gordon is about future economic growth in the United States and he predicts a increase during this century.

An event that allows the economy to operate more efficiently by producing more outputs without using any more inputs is referred to as

Which of the following is NOT an example of technological progress?

Recall the Application about predicting future economic growth to answer the following question(s) . -According to this Application, other economists disagree with Professor Gordon and suggest that the ________ will help to increase future growth.

Which of the following is NOT an example of technological progress?

Technological innovations are not necessarily major scientific breakthroughs.

The contribution to output growth of technological progress is estimated by how much of the output growth can be explained by the growth in inputs.

Suppose the growth rate of GDP in the United States is 4.2 percent. If 2.9 percent and 1.3 percent of GDP growth are due, respectively, to capital and labor growth, the amount resulting from technological progress is

Labor productivity is defined as

Which of the following is an example of technological progress?

Technological progress can be another mechanism which affects economic growth.

Quiz 13: Why Do Economies Grow

Growth accounting refers to the method used to

In terms of technological progress, economists interpret this as meaning an economy operates more efficiently by producing more output without using any more inputs.

Suppose the growth rate of GDP in the United States is 4.2 percent. If 1.1 percent and 1.4 percent of GDP growth are due, respectively, to capital and labor growth, the amount resulting from technological progress is

Recall the Application about predicting future economic growth to answer the following question(s) . -According to economist Robert Gordon, major innovations in the United States have been concentrated in ________ waves of growth.

According to the method of growth accounting, which of the following contribute to economic growth?

Technological progress means that we produce more output with the same amount of inputs.

Recall the Application about predicting future economic growth to answer the following question(s) . -According to this Application, Professor Gordon is ________ about future economic growth in the United States and he predicts a ________ increase during this century.

An event that allows the economy to operate more efficiently by producing more outputs without using any more inputs is referred to as

Which of the following is NOT an example of technological progress?

Recall the Application about predicting future economic growth to answer the following question(s) . -According to this Application, other economists disagree with Professor Gordon and suggest that the ________ will help to increase future growth.

Which of the following is NOT an example of technological progress?

Technological innovations are not necessarily major scientific breakthroughs.

The contribution to output growth of technological progress is estimated by how much of the output growth can be explained by the growth in inputs.

Suppose the growth rate of GDP in the United States is 4.2 percent. If 2.9 percent and 1.3 percent of GDP growth are due, respectively, to capital and labor growth, the amount resulting from technological progress is

Labor productivity is defined as

Which of the following is an example of technological progress?

Technological progress can be another mechanism which affects economic growth.

Recall the Application about predicting future economic growth to answer the following question(s) . -According to this Application, Professor Gordon is about future economic growth in the United States and he predicts a increase during this century.