Econ 102 midterm 2
SOS ECON102 Midterm #2
Review Package
Remember, this package only offers a short review of the material that will covered on the midterm. It is most effective when used in conjunction with your textbook, study guide, and the PowerPoint provided.
Chapter 7: Production and Growth
Terms:
Catch-up effect the property whereby countries that starts off poor tend to grow more rapidly than countries that start off rich
Diminishing returns the property whereby the benefit from an extra unit of an input declines as the quantity of the input increases
Human capital the knowledge and skills that workers acquire through education, training, and experience
Natural resources the inputs into the production of goods and services that are provided by nature, such as land, rivers, and mineral deposits
Physical capital the stock of equipment and structures that are used to produce goods and services
Productivity
the amount of goods and services produced from each hour of a worker's time
Technological knowledge an understanding of the best ways to produce goods and services
Multiple Choice:
1. Of the following countries, which grew the slowest over the last 100 years?
A. Brazil.
B. Mexico.
C. Singapore.
D. United States.
2. On average, each year of schooling raises a person's wage in Canada by about
A. 3 percent.
B. 10 percent.
C. 15 percent.
D. 25 percent.
3. The primary reason that Canadian living standards are higher today than they were a century ago is that
A. more productive natural resources have been discovered
B. physical capital per worker has increased
C. technological knowledge has increased
D. human capital has increased
4. Many countries in Africa have low growth rates. This is partly due to
A. few natural resources
B. high trade barriers
C. low incomes, making it very difficult for them to grow
D. All of the above are correct.
5. A government can encourage growth and,
Review Package
Remember, this package only offers a short review of the material that will covered on the midterm. It is most effective when used in conjunction with your textbook, study guide, and the PowerPoint provided.
Chapter 7: Production and Growth
Terms:
Catch-up effect the property whereby countries that starts off poor tend to grow more rapidly than countries that start off rich
Diminishing returns the property whereby the benefit from an extra unit of an input declines as the quantity of the input increases
Human capital the knowledge and skills that workers acquire through education, training, and experience
Natural resources the inputs into the production of goods and services that are provided by nature, such as land, rivers, and mineral deposits
Physical capital the stock of equipment and structures that are used to produce goods and services
Productivity
the amount of goods and services produced from each hour of a worker's time
Technological knowledge an understanding of the best ways to produce goods and services
Multiple Choice:
1. Of the following countries, which grew the slowest over the last 100 years?
A. Brazil.
B. Mexico.
C. Singapore.
D. United States.
2. On average, each year of schooling raises a person's wage in Canada by about
A. 3 percent.
B. 10 percent.
C. 15 percent.
D. 25 percent.
3. The primary reason that Canadian living standards are higher today than they were a century ago is that
A. more productive natural resources have been discovered
B. physical capital per worker has increased
C. technological knowledge has increased
D. human capital has increased
4. Many countries in Africa have low growth rates. This is partly due to
A. few natural resources
B. high trade barriers
C. low incomes, making it very difficult for them to grow
D. All of the above are correct.
5. A government can encourage growth and,