EC 202 EXAM 2 QUESTIONS & ANSWERS
Catch-up growth is the ____________. - Answer -process by which relatively poorer
nations increase their incomes by taking advantage of the knowledge and technologies
already invented in other technologically advanced nations.
An example of catch-up growth is ____________. - Answer -South Korea, which by
1970 had become poorer relative to the United States, but over the last 40 years grew
faster than the United States, closing the gap that had opened up previously.
Sustained growth is the ____________. - Answer -process where GDP per capita
grows at a positive and relatively steady rate for long periods of time.
An example of sustained growth is ____________. - Answer -the United States, which
demonstrated sustained growth between 1820 and 2007.
A country with a very low per capita GDP can have a very high growth rate because
mathematically, when the ______ is ______, even a small difference in the ______ will
result in large growth rate. - Answer -Denominator, lower, numerator
Growth Rate equation - Answer -(New - Old) / Old
Which factors explain economic growth in the United States over the past few decades?
- Answer -Human Capital(H)
Physical Capital(K)
Technology(A)
Which factor is the most important contributor to growth in the United States? - Answer
-Technology(A)
Aggregate Production Function - Answer -Y = A x F(K,H)
K Capital
H Human Capital
A Technology
A relatively simple method of gauging the change in living standards over time within a
country is to compute_____GDP per capita. - Answer -Real
Real GDP Per Capita Formula - Answer -Real GDP/Population
Real GDP Formula - Answer -(Nominal GDP/Deflator)x100
Why was there no sustained economic growth before modern times, that is, before
1800? - Answer -The pace of technological change was much slower than in modern
times.
Catch-up growth is the ____________. - Answer -process by which relatively poorer
nations increase their incomes by taking advantage of the knowledge and technologies
already invented in other technologically advanced nations.
An example of catch-up growth is ____________. - Answer -South Korea, which by
1970 had become poorer relative to the United States, but over the last 40 years grew
faster than the United States, closing the gap that had opened up previously.
Sustained growth is the ____________. - Answer -process where GDP per capita
grows at a positive and relatively steady rate for long periods of time.
An example of sustained growth is ____________. - Answer -the United States, which
demonstrated sustained growth between 1820 and 2007.
A country with a very low per capita GDP can have a very high growth rate because
mathematically, when the ______ is ______, even a small difference in the ______ will
result in large growth rate. - Answer -Denominator, lower, numerator
Growth Rate equation - Answer -(New - Old) / Old
Which factors explain economic growth in the United States over the past few decades?
- Answer -Human Capital(H)
Physical Capital(K)
Technology(A)
Which factor is the most important contributor to growth in the United States? - Answer
-Technology(A)
Aggregate Production Function - Answer -Y = A x F(K,H)
K Capital
H Human Capital
A Technology
A relatively simple method of gauging the change in living standards over time within a
country is to compute_____GDP per capita. - Answer -Real
Real GDP Per Capita Formula - Answer -Real GDP/Population
Real GDP Formula - Answer -(Nominal GDP/Deflator)x100
Why was there no sustained economic growth before modern times, that is, before
1800? - Answer -The pace of technological change was much slower than in modern
times.
