Quiz Four Flashcards

1
Q

Why use rGDP to measure standard of living?

A

It represents the average person’s ability to buy goods and services

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2
Q

True or false: growth rates are compounding

A

True: small changes in growth rate make big differences in living standards over time

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3
Q

What does the economic growth model do?

A

Explains growth rates in rGDP per capita over the long run

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4
Q

What is labor productivity

A

Quantity of goods and services that can be produced by one worker

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5
Q

Increased labor productivity is influenced by:

A

Quantity of capital available to workers

Technology level

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6
Q

Technological change

A

Positive or negative change in a firm’s ability to produce a given level of output with a given quantity of input

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7
Q

A

A

Technology

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8
Q

Y

A

Real GDP

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9
Q

L

A

Number of workers

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10
Q

K

A

Capital

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11
Q

K/L

A

Capital per worker

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12
Q

Y/L

A

Output per worker

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13
Q

Per worker production function

A

Y/L = A* (K/L)^.3

Output per worker equals technology * capital per worker ^0.3

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14
Q

If the variable on the axis ____, move along the curve

A

Changes

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15
Q

If an external variable (ex: technology ) changes, the curve _____

A

Shifts

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16
Q

Y/pop

A

rGDP per person

17
Q

L/pop

A

Fraction of the population who works

18
Q

rGDP per person formula

A

Y/pop = (L/pop) * (Y/L)

RGDP per person= working population * amount the average worker produces