MIDTERM # 3
Remember to bring a non-programmable, non-graphical calculator, some pencils,
and an eraser.
– PRODUCTION AND GROWTH
Definitions, applications and examples: productivity, physical capital, human
capital, natural resources, per capita GDP, investment, World Bank, IMF,
Gary Becker (everything he proposed), foreign direct investment, foreign
portfolio investment, diminishing returns, catch-up effect, free trade, brain
drain, child labor, other problems impacting developing countries,
What are the differences in growth rates of countries attributable to?
Know the policies that a government should pursue encourage growth in the
long run. To increase growth rates, we need to increase productivity rates. So
what are the policies that would increase productivity rates?
How do investments/savings affect growth rates?
What do most economists attribute the recent fall in the growth of
productivity in the US to?
– SAVING, INVESTMENT AND THE FINANCIAL SYSTEM
Definitions and examples: financial system. financial markets, financial
institutions, financial intermediaries, stocks, bonds, mutual funds, banks,
junk bonds, budget surplus, budget deficits, balanced budget, crowding