Chapter 9 Global Economic Growth Development Jeopardy Template

Theory	Definition	Application
100 Increase in productive capacity What does the difference between the blue and red line represent? (See Graph)	100 Development economics the study of why some countries grow and develop and others do not and of policies that might help developing economies get richer. Which word is defined as “the study of factors that contribute to the economic growth of a country?”	100 Labor Resources In the following chart, which resource is the main contributor to economic growth?
200 Unsubstantiated rise in expectations Urban congestion Break down of family Why do some Economists argue that Economic growth is bad?	200 New Growth Theory “When the rewards are greater, more technological advances will occur” is a key foundation of which theory?	200 Increase in the productivity of labor force Human capital consists of knowledge and skills that can be obtained through training and education The more human capital a labor force has, the more efficient they become What are the results of an increase in human labor and why?
300 Saving allows individuals to decrease present consumption and keep the difference between income and consumption Higher savings rate eventually leads to higher standard of living Investment cannot occur without saving Using the concept of Ceteris paribus how does the rate of saving impact economic growth and why?	300 Innovation Which term does the following definition match up with? “ The transformation of something new, such as an invention, into something that benefits the economy either by lowering production costs or by providing new goods and services”	300 Growth will be negative Describe the following country’s situation in respect to Economic growth: Suppose a portion of Mexico’s capital goods deteriorate over time, so a portion of the nation’s capital goods become unusable every year. It has experienced no growth in its population or in the amounts of other productive resources during the past year. In addition, the nation’s technology and resource productivity have remained unchanged during the past year. Last year, its residents decided to produce no capital goods.
400 Catalyzes Economic growth Reduces barriers to trade and allows nations to specialize so they can become more productive How does limiting “protectionism” influence economic growth?	400 Technology cannot simply be viewed as an external factor without a reasonable explanation Technology must be understood by what drives it What are the primary principles associated with the New Growth Theory?	400 GDP understated the increase in living standards Individuals had more leisure available from the time that was freed up After declining for a period of time, the average hours worked per week leveled off in the 1960s. How does this correlate to the nation’s GDP during the time all else equal?
500 A nation’s per-capita GDP may grow at a fast rate, but certain income groups may benefit more than others Rich become richer Poor become poorer How is it possible that a nation facing economic growth may also deal with problems in distributing inputs and outputs?	500 A certain amount of the benefits associated with this go to parties who did not have the endure the cost How is research and development an example of a positive externality?	500 Habit will experience greater economic growth because they have more secure private property rights Using the following situation, which nation will face greater economic growth assuming Ceteris paribus : Under new political leadership, the imaginary nation of Oriental decides to periodically confiscate businesses and make them undergo an extensive auditing process. On the contrary, the fictitious nation of Habit has a new leader who takes a “hands off” approach towards private property rights, which essentially means that the government wouldn’t confiscate the citizen’s land.

Chapter 9: Global Economic Growth & Development

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