21) Human capital is
A) the saving done by human beings.
B) the knowledge and skills that people in the work force acquire through education and training.
C) a measure of the labor productivity of workers.
D) the investment people make in industries that make capital goods.
22) Which of the following is true of trends in the number of new U.S. patents?
A) There was a steady increase in new patents throughout the 1970s.
B) There was a surge in new patents in the latter part of the 1990s.
C) The number of new patents granted each year has remained unchanged since the early 1970s.
D) The number of new patents granted each year declined by more than 50 percent after 2001.
23) Traditionally, economists regarded improvements in technology as
A) the most important factor that helped explain economic growth, and basically the only factor that would cause economic growth.
B) an outside factor that helped explain economic growth.
C) an important factor in explaining economic growth that was due to economic forces that also could easily be explained.
D) unrelated to economic growth in any systematic way.
24) Which of the following is NOT associated with the new growth theory?
A) Natural resources
25) New growth theory is concerned with
A) finding a good way to measure economic growth.
B) increasing the savings rate in the U.S.
C) understanding the forces that increase productivity.
D) understanding how compounding works.
26) Recently economists have added what factor as a major explanation of economic growth?
A) The growth rate of labor
B) The growth rate of capital
C) The growth rate in labor and capital productivity
27) New growth theory argues that
A) growth is due to the proper government policies concerning interest rates.
B) growth relies on maintaining lower growth rates of population, especially in less developed countries.
C) technology cannot be looked at as an outside factor without an explanation of what drives it.
D) technology is the key factor that explains growth but technology is beyond economic explanation itself.
28) An important foundation of the new growth theory is that
A) we will get more technological advances the more the government is involved.
B) we will get more technological advances when the rewards for producing them are greater.
C) the growth rate of the capital stock is more important than the growth rate of new knowledge in generating economic growth.
D) improvements in labor productivity are poor measures of technological growth.
29) Which of the following will tend to cause an increase in technology?
A) an increase in research and development expenditures.
B) the development of new ideas.
C) increases in human capital.
D) all of the above.
30) The development of new products through research and development in new growth theory is important because
A) there can be a positive impact on future growth.
B) society's scarce resources are being used when they could be used for current consumption.
C) it will lead to a reduction in the savings rate.
D) new patents are created.