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E2-8 - Lecture notes 1,2
Applied Economics (Econ 11)
University of San Agustin
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CHAPTER 3
1 in in ____Asia SOUTH 2 theory that tries to endogenize (to develop something internally, especially a parameter within an economic model) technical progand make use of assumptions of increasing returns to scale and positivresse externalities is ----- NEW GROWTH THEORY 3. When the output increases at the same rate as the inputs, theproduction function as having- CONSTANT RETURNS TO SCALE
can take place when there is economic growth and the scale of production increase (scale efficiencies) or production shifts froma low productivity sector to a more productive sector DYNAMIC EFFICIENCY
A model that states that there is a low accumulation ofcapital, low productivity, and low earnings in the rural areas (traditional sector). On the other hand, the modern sector has high productivityand pays higher wages, thus, people from the rural areas move to urban areas (cities) to take advantage of higher earnings. LEWIS-FEL-RANIS
_____ measures the value of goods and services produced withina country's borders, by citizens and non-citizens alike. GROSS DOMESTIC PRODUCT
Other name of TFP. MULTIFACTOR PRODUCTIVITY
It describes the relation between two or more than two variables andtries to give the relationship in a mathematical form. FUNCTION
A theory in econonmics that predicts that after some optimal level of capacity is reached, adding an additional factor of production willactually result in smaller increases in output is LAW OF DIMINISHING RETURNS
It is an investment made by a fhrm or individual in one countbusiness interests located in another country is called FOREIGN DIRECT INVESTMENT ry into
Gross domestic product (GDP) and _____are both widely used measures of a country's aggregate economic output. GROSS NATIONAL PRODUCT
A two sector model- a modern and a traditional sector. ResourcesSmove from the traditional to the modern sector and this spurs growth. LEWIS-FEI-RANIS MODEL
A theory about economic development stating that it is a process of shifts in resources, and a shift from agricultural to industrial and sesector STRUCTURALIST APPROACH rvice
_____includes the portion of economic growth that cannot be explained by the residual measures of inputs of land, labor, and capital. TOTAL FACTOR PRODUCTIVITY
15----refers to the growth theory where the price of raw materifrom poor countries tend to deteriorate over time and export more toals keep them from slipping backward. It is a growth theory that supporan equitable price of raw materials from poor countries in the South asts against the price of finished goods manufactured from rich countries in the North - power balance theory 16. is the type of technical progress that relates to the wayfactors of production are combined together in the workplace like management or organizational innovation DISEMBODIED TECHNICAL PROGRESS 17. refers to the growth in output unaccounted by the growthof labor and capital residual growth
Growth is dependent on the rate of capital formation and theof the use of capital (capital/output ratio). HARROD-DOMAR efficiency
A term that refers to a quantitative tool to breakdown how specific factors contribute to economic growth is GROWTH ACCOUNTING
is the type of technical progress that changes the natureinputs which includes more highly skilled and computer literate of workers or the installation of new innovations in capital equipment. EMBODIED TECHNICAL PROGRESS
It is an investment made by a firm or individual in one country into business interests located in another country is called FOREIGN DIRECT INVESTMENT
A curve depicting the best possible combination of goods that is pricin an economy because the combination utilizes all the available inputsed efficiently and minimizes waste is PRODUCTION POSSIBILTY FRONTIER CHAPTER 4
During the Asian crisis, the Thai baht was devalued. The currencies of other nations is limited only in Southeast Asia. devaluation of -False
China's economy accelerated in between 2002 and 2207 due tincrease in stock prices. -False o
During the Asian crisis, the cost of financial services is low. -False
A reform measure prescribed by the international banks and aid agencies after the Asian financial crisis is debt restructuring. -True
Japan is among the ASEAN - False
Nonperforming loans are loans that are not paid within 30 days. -False
During the Asian crisis, countries have organized fund management system. -False
The sterilization function performed by Central banks on capiincludes filing cases on ill-gotten wealth. -False tal inflow
4 Lewis-Fei-Ranis Model argues that surplus labor movement iindustry cannot provide any net gain to society. -False nto the
5 technical progress is labor-intensive, it will retard progress. -False 6 labor migration is due to the availability of advancedtelecommunications. -False
7 is inefficiency in economies of scale. -False
E2-8 - Lecture notes 1,2
Course: Applied Economics (Econ 11)
University: University of San Agustin
