27&28 McConell

Real GDP equals times _

labor input; labor productivity

Growth means worker burnout and frantic schedules:

Anti-growth

Rising incomes allow people to buy more education, medical care, and recreation:

Pro-growth

Earth has only finite amounts of natural resources:

Anti-growth

Even the richest countries still have poverty, homelessness, and discrimination:

Antigrowth

Richer countries spend more money protecting the environment:

Pro-growth

Natural resource prices have fallen rather than increased over time:

Pro-growth

Real GDP per capita is found by

dividing real GDP by population

Which of the following is a supply factor in economic growth

Increases in the quantity and quality of natural resources

Human capital refers to the the

Education, training, and skills of workers

Real GDP per capita

can grow either more slowly or more rapidly rather than real GDP

If depreciation (consumption of fixed capital) exceeds gross domestic investment, we can conclude that

net investment is negative

In calculating GDP, governmental transfer payments, such as Social Security or unemployment compensation, are

not counted

The economywide amount of depreciation

is called consumption of fixed capital.