Chapter 6: Problem 19
What do economists mean when they refer to improvements in technology?
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Key Concepts
These are the key concepts you need to understand to accurately answer the question.
Chapter 6: Problem 19
What do economists mean when they refer to improvements in technology?
These are the key concepts you need to understand to accurately answer the question.
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Get started for freeOver the past 50 years, many countries have experienced an annual growth rate in real GDP per capita greater than that of the United States. Some examples are China, Japan, South Korea, and Taiwan. Does that mean the United States is regressing relative to other countries? Does that mean these countries will eventually overtake the United States in terms of the growth rate of real GDP per capita? Explain.
Would the following events usually lead to capital deepening? Why or why not? a. A weak economy in which businesses become reluctant to make long-term investments in physical capital. b. A rise in intemational trade. c. A trend in which many more adults participate in continuing education courses through their employers and at colleges and universities.
As technological change makes us more sedentary and food costs increase, obesity is likely. What factors do you think may limit obesity?
Would you expect capital deepening to result in diminished returns? Why or why not? Would you expect improvements in technology to result in diminished returns? Why or why not?
An economy starts off with a GDP per capita of \$5,000. How large will the GDP per capita be if it grows at an annual rate of \(2 \%\) for 20 years? \(2 \%\) for 40 years? \(4 \%\) for 40 years? \(6 \%\) for 40 years?
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