Economic Growth and Productivity Quiz

Technological progress drives long-term economic growth by improving efficiency and creating new opportunities.

Improvement in technology enhances productivity by enabling faster, more efficient processes.

The primary objective of economic growth policies is to enhance the standard of living by increasing production and income levels.

Real GDP per capita accounts for changes in population, providing a more accurate reflection of economic growth on a per-person basis.

Sustained economic growth denotes consistent increases in output over time, indicating a stable and expanding economy.

Investing in education and training improves human capital, leading to higher productivity and economic growth.

Labor productivity is calculated by dividing the output produced by the input used in the production process.

Economic growth refers to increases in GDP and output, while economic development includes improvements in quality of life, education, and healthcare.

Labor productivity is commonly measured as the amount of output produced per unit of labor input, such as output per worker hour.

Entrepreneurs introduce new ideas, products, and services, stimulating economic activity and driving growth.

Total Factor Productivity (TFP) measures the efficiency of labor and capital, but it does not include government spending as a factor.

Government spending is not a primary factor considered in the Solow Growth Model, which focuses on capital accumulation and technological progress.

Lowering taxes on businesses incentivizes investment and production, stimulating economic growth from the supply side.

Savings provide funds for investment, which contributes to capital accumulation and ultimately leads to higher economic growth.

The Solow Residual represents technological progress and other factors that influence output growth beyond changes in capital and labor inputs.

While moderate inflation can indicate economic activity, high inflation can hinder economic growth by reducing purchasing power and increasing uncertainty.

The Cobb-Douglas production function expresses how inputs like labor and capital combine to produce output, offering insights into production efficiency and factor contributions.