ECON 214 InQuizitive ch. 12 Liberty University Solution

Fill in the blanks to complete the passage about the key difference between Nogales, Arizona, and neighboring Nogales in the Mexican state of Sonora.

The two cities are in the same location and have similar – and geography, but the U.S. city has a – level of education, – infant mortality, and better roads. The key difference is – that promote security of people and property on the one side but not the other.

Fill in the blank to complete the sentence.

Diminishing marginal product sets in after the –ladder.

Consider input X as one factor leading to output Y. What is the marginal product of X?

We can use the marginal product of resources to analyze the relationship between capital and output in an economy. Drag each word or phrase to the appropriate blank.

In the – production function, the slope of the function corresponds to the –. If the slope is –, we know that output is increasing. As the slope declines, that is a sign of – marginal product.

Drag each word to the appropriate blank space to complete the passage.

The original Solow growth model assumed that technology growth is –, which means that innovation is –the economy.

Which steps did Chile take to reform its economy and increase its growth rate?

Fill in the blanks to complete the passage about patents.

A patent gives the holder a – monopoly. That time period allows – to profit off the technology without others being able to do the same, which is an incentive that encourages –.

Seth is trying to decide how many workers is the optimal amount at his factory, which produces artisan-crafted grooming products. He observes the following:

What is the marginal product of the third worker?

Assuming the blue production function (F1) is the initial state of a country’s economy, click on the production function after a surge in the nation’s technology sector, for instance, due to government funding.

We can use the total output to determine what is happening with the marginal product, or we can use the marginal product to analyze total output. Drag each word or phrase to the appropriate blank space in order to correctly complete the table.

Place each item in its correct location in the diagram to illustrate the change of events that starts with a growth-friendly institution and ends with economic growth.

Place in order the events that start with the right institution being put in place and end with growth.

Macroeconomic theories evolve over time. They both shape and respond to real-world circumstances.

Beginning with the observation of real-world events, put the following events in the correct order to describe the continuous interplay between economic theory and the real world.

Drag each development in the economy to the graph that depicts its effect.

The focus of macroeconomics changes over time, depending on the state of the economy. Fill in the blanks to complete the passage.

After the –, the primary focus of macroeconomics shifted to –, that is, to short-run – of the economy. Toward the end of the last century, the focus returned to –growth.

Select all the events that could result in a nation’s increasing the slope of its entire production function.