In Techland, from 1980 to 2010, holding technology and human capital fixed, increasing physical capital per worker from $25,000 to $100,000 would have led to a doubling of real GDP per worker, from $40,000 to $80,000. However, not only did physical capital per worker increase from $25,000 to $100,000, but technological progress shifted the productivity curve upward so that real GDP per worker actually increased from $40,000 to $320,000.Look at the scenario Technological Progress and Productivity Growth in Techland. What share of the growth rate of real GDP per capita was attributable to higher total factor productivity?
A. 2.0%
B. 5%
C. 8.75%
D. 6.5%
Ans: B. 5%
You might also like to view...
When prices rise:
A) money supply tends to rise. B) menu costs tend to fall. C) consumers' purchasing power falls. D) money demand tends to fall.
Government regulations require publicly traded firms to provide information, reducing
A) transactions costs. B) the need for diversification. C) the adverse selection problem. D) economies of scale.
Which of the following explains the slower economic growth in the South compared to other regions of the country?
A. Much of the South's capital, public and private, was destroyed in the Civil War. B. The transcontinental railroads that were completed in the 1860s, 1870s, and 1880s all bypassed the South. C. The South remained an agricultural region after the Civil War instead of immediately becoming a higher productivity manufacturing region. D. All of the choices are true.
If products C and D are close substitutes, an increase in the price of C will:
A. tend to cause the price of D to fall. B. shift the demand curve of C to the left and the demand curve of D to the right. C. shift the demand curve of D to the right. D. shift the demand curves of both products to the right.