Reading 14: Economic Growth-LOS b习题精选 2010, percent, change, center, growth

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Session 4: Economics: Economics for Valuation
Reading 14: Economic Growth

LOS b: Discuss how the one-third rule can be used to explain the contributions of labor and technological change to growth in labor productivity.

 

 

 

Assume that real GDP per labor hour grew by 6 percent over the past 5 years while capital per labor hour grew by 5.25 percent. Based on the one third rule, the amount of real GDP growth attributable to the increase in capital per labor hour and the amount attributable to technological change are closest to:

 

Increase in Capital

Technological Change

A) 1.75% 4.25%

B) 2.00% 4.00%

C) 0.75% 5.25%

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土豆妮

Over a 10 year period, labor productivity increased from $10 per labor hour to $10.60 per labor hour. Over the same period, the investment in new capital increased from $25 per labor hour to $25.50 per labor hour. The contribution of technological advancement to economic growth over this period is closest to:

A) 4.11%.

B) 3.00%.

C) 5.33%.

土豆妮

Over a 10 year period, labor productivity increased from $10 per labor hour to $10.60 per labor hour. Over the same period, the investment in new capital increased from $25 per labor hour to $25.50 per labor hour. The contribution of technological advancement to economic growth over this period is closest to:

A) 4.11%.

B) 3.00%.

C) 5.33%.

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According to the one third rule, at a given level of technology, a 1% increase in capital per labor hour results in a 1/3% increase in real GDP per labor hour. The percent change in capital per labor hour is 2% = (25.50/25) – 1. The increase in productivity due to the increase in capital per labor hour is 1/3 x 2.0% = 0.67%. The change in economic growth (GDP per labor hour) is 6% = (10.6/10) – 1. The remainder of the increase in GDP per labor hour, 6% – 0.67% = 5.33%, is due to technology change.

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Assume that real gross domestic product (GDP) per labor hour grew 7% over the past three years. Based on the one third rule, the amount of real GDP growth attributable to the change in new capital is 1.5%. Over this period, the contribution of technological change to real GDP growth and the growth rate in new capital is closest to:

Technology contribution

Growth of new capital

A) 6.5% 0.5%

B) 5.5% 4.5%

C) 1.8% 4.5%

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Which of the following is the most accurate description of the one third rule?

A) One third of real GDP per labor hour is attributable to the level of new capital per labor, holding technology constant.

B) A 1% increase in capital per labor hour results in a one third of 1% increase in real GDP per labor hour, holding technology constant.

C) A 1% increase in technology results in a one third of 1% increase in real GDP per labor hour, holding capital per labor hour constant.

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The one third rule states that at a given level of technology, on average, a 1% increase in capital per labor hour results in a one third of 1% increase in real GDP per labor hour.

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Assume that real GDP per labor hour grew by 7% over the past 5 years while capital per labor hour grew by 4.5%. Using the one-third rule, an estimate of the amount of real GDP growth attributable to technological change is closest to:

A) 1.5%.

B) 5.5%.

C) 2.33%.

土豆妮

Assume that real GDP per labor hour grew by 6 percent over the past 5 years while capital per labor hour grew by 5.25 percent. Based on the one third rule, the amount of real GDP growth attributable to the increase in capital per labor hour and the amount attributable to technological change are closest to:

 

Increase in Capital

Technological Change

A) 1.75% 4.25%

B) 2.00% 4.00%

C) 0.75% 5.25%

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According to the one third rule, capital has contributed one third of 5.25% toward the increase in real GDP per labor hour. So, the capital growth contribution to the 1% increase in GDP is 1/3 × 5.25% = 1.75%. The remaining 4.25% (= 6% – 1.75%) growth in real GDP per labor hour is attributable to technological change.