Suppose an economy grows by 2.5 percent, the labor force rises by 3 percent, and

Question

Suppose an economy grows by 2.5 percent, the labor force rises by 3 percent, and capital rises by 1 percent. If capital takes 50 percent of real GDP, then the growth in total factor productivity must be___.

a. 6.5%

b. 4.5%

c. 0.5%

d. 6%

e. 10%

If real GDP in Korea amounted to 448.3 trillion wons in 1999 and 473.7 trillion wons in 2000, compute the growth experienced by this country in 2000?

a. 5.4%

b. 5.66%

c. 2.54%

d. -1.05%

e. -9.4%

Which of the following statements about technology is true?

a. It is a sufficient but not necessary condition for economic growth.

b. Management techniques are irrelevant to technological growth.

c. Industrial countries follow the lead of developing countries in implementing new technology.

d. Technological change is inversely related to a nation's ability to save.

e. Low levels of education can impede technological progress.

Explanation / Answer

1. c. 0.5%(2.5- 2)

2. b. 5.66%(473.7-448.3)/448.3

3. c. Industrial countries follow the lead of developing countries in implementing new technology

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