曼昆经济学原理英文版文案加习题答案25章.docx

1、曼昆经济学原理英文版文案加习题答案25章WHATS NEW IN THE SEVENTH EDITION:There is a new In the News box on “Does Food Aid Help or Hurt?”LEARNING OBJECTIVES:By the end of this chapter, students should understand: how much economic growth differs around the world. why productivity is the key determinant of a countrys sta

2、ndard of living. the factors that determine a countrys productivity. how a countrys policies influence its productivity growth.CONTEXT AND PURPOSE:Chapter 12 is the first chapter in a four-chapter sequence on the production of output in the long run. Chapter 12 addresses the determinants of the leve

3、l and growth rate of output. We find that capital and labor are among the primary determinants of output. In Chapter 13, we address how saving and investment in capital goods affect the production of output, and in Chapter 14, we learn about some of the tools people and firms use when choosing capit

4、al projects in which to invest. In Chapter 15, we address the market for labor. The purpose of Chapter 12 is to examine the long-run determinants of both the level and the growth rate of real GDP per person. Along the way, we will discover the factors that determine the productivity of workers and a

5、ddress what governments might do to improve the productivity of their citizens.KEY POINTS: Economic prosperity, as measured by GDP per person, varies substantially around the world. The average income in the worlds richest countries is more than ten times that in the worlds poorest countries. Becaus

6、e growth rates of real GDP also vary substantially, the relative positions of countries can change dramatically over time. The standard of living in an economy depends on the economys ability to produce goods and services. Productivity, in turn, depends on the amounts of physical capital, human capi

7、tal, natural resources, and technological knowledge available to workers. Government policies can try to influence the economys growth rate in many ways: by encouraging saving and investment, encouraging investment from abroad, fostering education, promoting good health, maintaining property rights

8、and political stability, allowing free trade, and promoting the research and development of new technologies. The accumulation of capital is subject to diminishing returns: The more capital an economy has, the less additional output the economy gets from an extra unit of capital. As a result, while

9、higher saving leads to higher growth for a period of time, growth eventually slows down as capital, productivity, and income rise. Also because of diminishing returns, the return to capital is especially high in poor countries. Other things equal, these countries can grow faster because of the catch

10、-up effect. Population growth has a variety of effects on economic growth. On the one hand, more rapid population growth may lower productivity by stretching the supply of natural resources and by reducing the amount of capital available for each worker. On the other hand, a larger population may en

11、hance the rate of technological progress because there are more scientists and engineers.CHAPTER OUTLINE:I. Economic Growth around the WorldTable 1A. Table 1 shows data on real GDP per person for 13 countries during different periods of time.1. The data reveal the fact that living standards vary a g

12、reat deal between these countries.2. Growth rates are also reported in the table. Japan has had the largest growth rate over time, 2.65% per year (on average).3. Because of different growth rates, the ranking of countries by income per person changes over time.a. In the late 19th century, the United

13、 Kingdom was the richest country in the world.b. Today, income per person is lower in the United Kingdom than in the United States (a former colony of the United Kingdom).B. FYI: Are You Richer Than the Richest American?1. According to the magazine American Heritage, the richest American of all time

14、 is John B. Rockefeller, whose wealth today would be the equivalent of approximately $200 billion.2. Yet, because Rockefeller lived from 1839 to 1937, he did not get the chance to enjoy many of the conveniences we take for granted today such as television, air conditioning, and modern medicine.3. Th

15、us, because of technological advances, the average American today may enjoy a “richer” life than the richest American who lived a century ago.C. FYI: A Picture Is Worth a Thousand Statistics1. This box presents three photos showing a typical family in three countries the United Kingdom, Mexico, and

16、Mali. Each family was photographed outside their home, together with all of their material possessions.2. These photos demonstrate the vast difference in the standards of living in these countries.II. Productivity: Its Role and DeterminantsA. Why Productivity Is So Important1. Example: Robinson Crus

17、oe a. Because he is stranded alone, he must catch his own fish, grow his own vegetables, and make his own clothes.b. His standard of living depends on his ability to produce goods and services.2. Definition of productivity: the quantity of goods and services produced from each unit of labor input.3.

18、 Review of Principle #8: A Countrys Standard of Living Depends on Its Ability to Produce Goods and Services.B. How Productivity Is Determined1. Physical Capital per Workera. Definition of physical capital: the stock of equipment and structures used to produce goods and services.b. Example: Crusoe wi

19、ll catch more fish if he has more fishing poles.2. Human Capital per Workera. Definition of human capital: the knowledge and skills that workers acquire through education, training, and experience.b. Example: Crusoe will catch more fish if he has been trained in the best fishing techniques or as he

20、gains experience fishing.3. Natural Resources per Workera. Definition of natural resources: the inputs into production that are provided by nature, such as land, rivers, and mineral deposits.b. Example: Crusoe will have better luck catching fish if there is a plentiful supply around his island.4. Te

21、chnological Knowledgea. Definition of technological knowledge: societys understanding of the best ways to produce goods and services.b. Example: Crusoe will catch more fish if he has invented a better fishing lure.C. FYI: The Production Function1. A production function describes the relationship bet

22、ween the quantity of inputs used in production and the quantity of output from production.2. The production function generally is written like this: where Y = output, L = quantity of labor, K = quantity of physical capital, H = quantity of human capital, N = quantity of natural resources, A reflects

23、 the available production technology, and F () is a function that shows how inputs are combined to produce output.3. Many production functions have a property called constant returns to scale.a. This property implies that as all inputs are doubled, output will exactly double.b. This implies that the

24、 following must be true: where x = 2 if inputs are doubled.c. This also means that if we want to examine output per worker we could set x = 1/L and we would get the following:This shows that output per worker depends on the amount of physical capital per worker (K /L), the amount of human capital pe

25、r worker (H /L), and the amount of natural resources per worker (N /L).4. Case Study: Are Natural Resources a Limit to Growth? a. This section points out that as the population has grown over time, we have discovered ways to lower our use of natural resources. Thus, most economists are not worried a

26、bout shortages of natural resources.III. Economic Growth and Public PolicyA. Saving and Investment1. Because capital is a produced factor of production, a society can change the amount of capital that it has.2. However, there is an opportunity cost of doing so; if resources are used to produce capit

27、al goods, fewer goods and services are produced for current consumption.B. Diminishing Returns and the Catch-Up Effect1. Definition of diminishing returns: the property whereby the benefit from an extra unit of an input declines as the quantity of the input increases.Figure 1a. As the capital stock

28、rises, the extra output produced from an additional unit of capital will fall.b. This can be seen in Figure 1, which shows how the amount of capital per worker determines the amount of output per worker, holding constant all other determinants of output.c. Thus, if workers already have a large amoun

29、t of capital to work with, giving them an additional unit of capital will not increase their productivity by much.d. In the long run, a higher saving rate leads to a higher level of productivity and income, but not to higher growth rates in these variables.2. An important implication of diminishing

30、returns is the catch-up effect.a. Definition of catch-up effect: the property whereby countries that start off poor tend to grow more rapidly than countries that start off rich.b. When workers have very little capital to begin with, an additional unit of capital will increase their productivity by a

31、 great deal.C. Investment from Abroad1. Saving by domestic residents is not the only way for a country to invest in new capital.2. Investment in the country by foreigners can also occur.a. Foreign direct investment occurs when a capital investment is owned and operated by a foreign entity.b. Foreign

32、 portfolio investment occurs when a capital investment is financed with foreign money but operated by domestic residents.3. Some of the benefits of foreign investment flow back to foreign owners. But the economy still experiences an increase in the capital stock, which leads to higher productivity and higher wages.4. The World Bank is an organization that tries to encourage the flow of investment to poor countries.a. The World Bank obtains funds from developed countries such as the Uni