1. What is the metric we use to measure economic growth? China? 2. From 1990-2009, what was the average annual growth rate for the US? 3. What is per capital GDP? (review from Unit 5) 4. What does it mean to become more productive? 5. What are two ways society can increase productivity?
1. What is the metric we use to measure economic growth? China? 2. From 1990-2009, what was the average annual growth rate for the US? 3. What is per capital GDP? (review from Unit 5) 4. What does it mean to become more productive? 5. What are two ways society can increase productivity?
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter16: Creating An Environment For Growth And Prosperity
Section: Chapter Questions
Problem 14CQ
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1. What is the metric we use to measure economic growth?
China?
2. From 1990-2009, what was the average annual growth rate for the US?
3. What is per capital GDP? (review from Unit 5)
4. What does it mean to become more productive?
5. What are two ways society can increase productivity?
a.
b.
6. Briefly explain capital deepening.
7. We used to believe that innovation happened randomly and we had no way to induce innovation. The
New Growth Theory is the idea that innovation is not random, but happens because of financial incentives.
Therefore, if society rewards innovation, we will continue to have innovation, and therefore continued
economic growth. What is one way society can financially incentivize innovation?
8. A nation cannot experience economic growth unless it has underlying societal institutions in place. What
are these institutions?
9. Is democracy an institution that is necessary for growth? What evidence do you have to support your
response?
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