QUESTIONS FOR REVIEW
1. What does the level of a nation’s GDP measure! What does the growth rate of GDP measure? Would you rather live in a nation with a high level of GDP and a low growth rate or in a nation with a low level of GDP and a high growth rate?
2. List and describe four determinants of productivity.
3. In what way is a college degree a form of capital?
4. Explain how higher saving leads to a higher standard of living. What might deter a policymaker from trying to raise the rate of saving?
5. Does a higher rate of saving lead to higher growth temporarily or indefinitely?
6. Why would removing a trade restriction, such as a tariff, lead to more rapid economic growth?
7. How does the rate of population growth. influence the level of GDP per Person.
8. Describe two ways the u.s. government tries to encourage advances in technological knowledge