{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

AK_Chapter_07 - 4 Manufacturing sector Good because...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 7 Questions for Review 1. Value produced; total income earned; total expenditure on goods and services. High GDP + low growth rate = better (GDP, not growth, measures well-being). 2. Physical capital, human capital, natural resources, technological knowledge. 3. Human capital. 4. Higher saving = more capital = greater GDP. A policymaker might be deterred because people would have to reduce their consumption today. 5. Temporarily. 6. Use comparative advantage = consume more. 7. Probably lowers (capital dilution). 8. Research grants, tax breaks for R&D, patent system. Problems and Applications 1. You have to have goods and services to trade for other goods and services. 2. a. Factory, machines, robots, assembly line, labour… b. Books, classrooms, teachers… c. Planes, airports, pilots... d. Watering systems, harvesting machinery, trucks to transport, agricultural knowledge… 3. Computers, wireless phones, better cars...
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: .. 4. Manufacturing sector. Good because increased productivity. Manufactured goods are of lower cost. 5. a. Faster growth in the short run. b. Might be a transition when consumption-good industries get lower incomes, and investment-good industries get higher incomes. 6. a. Consumption: food, clothes…; investment: houses. .. b. Consumption: salaries to clerks…; investment: building roads… 7. Loss of (current) consumption. A country can "over-invest" in capital. A country could "over-invest" in human capital. 8. a. Foreign direct investment. b. Increases Canadian GDP. The effect on Canadian GNP would be smaller. 9. a. Made our capital stock larger. 117 F Chapter 7/Production and Growth b. Canada would have received full returns on the investment itself. 10. Increased human capital… Lower population growth. . 11. GDP 2030 = 1,000(1+0.035) 25 = 2,363 million GDP 2030 = 1,000(1 +0.040) 25 = 2,666 million...
View Full Document

{[ snackBarMessage ]}

Page1 / 2

AK_Chapter_07 - 4 Manufacturing sector Good because...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon bookmark
Ask a homework question - tutors are online