Which Of The Following Describes The Soviet Union's Economy

Which of the following describes the Soviet Union's economy in the second half of the 20th century

1-Which of the following describes the Soviet Union's economy in the second half of the 20th century? _______

A) The Soviet economy grew because it added labor through immigration policy in the 1950s.

B) The Soviet economy increased capital per worker very slowly from 1950 through 1980.

C) The Soviet economy grew rapidly in the later half of the 20th century.

D) The Soviet economy eventually grew slowly because of the slow rate of technological change.

2-Endogenous growth theory states that increases in ________ capital will result in ________ at the ________ level. ______

A) knowledge; increasing returns to scale: firm

B) physical; decreasing returns to scale; firm

C) knowledge; increasing returns to scale; economy

D) knowledge; decreasing returns to scale; economy

3-Some economists argue that the productivity slowdown from mid 1970s to mid 1990s actually didn't happen, but just "appeared" to happen because ______

A) new environmental laws had passed and forced firms to spend to reduce pollution and this spending did not raise output.

B) services were becoming a more important part of the economy and it was hard to measure increases of output from services.

C) increased spending on health and safety raised worker productivity.

D) A and B.

E) B and C.

4- Which of the following is NOT an explanation for the revival in the growth of productivity starting in the mid 1990s? ______

A) Cell phones and wireless Internet access increase worker flexibility.

B) Internet use has increased the efficiency of how firms buy and sell to each other and to consumers.

C) Information and communication innovations are increasingly geared toward improving business processes and not consumer products.

D) Faster computers have sped up data processing.

Paper For Above instruction

The questions provided delve into key aspects of economic history, growth theories, and productivity analysis, focusing on the Soviet Union's economic trajectory, the principles of endogenous growth theory, the interpretation of productivity slowdowns, and recent drivers of productivity revival. Each question addresses fundamental concepts that are crucial for understanding macroeconomic development and technological progress, which are central themes in economic studies.

In analyzing the Soviet economy during the second half of the 20th century, it is widely recognized that growth was uneven and often sluggish, particularly when assessed through increments in capital per worker and technological advances. The correct answer to the first question is D) "The Soviet economy eventually grew slowly because of the slow rate of technological change." This is consistent with historical evidence suggesting that despite rapid initial industrial growth, the Soviet economy stagnated due to technological stagnation and inefficiencies inherent in its centralized planning system (Harrison, 2007). Contrary to the notion that significant labor immigration policies spurred growth, the Soviet Union primarily relied on internal resource mobilization, which did not sustain rapid growth into its later years.

Endogenous growth theory emphasizes the role of knowledge and human capital in fostering sustained economic growth at the macroeconomic level. Question two highlights this, and the correct answer is C) "knowledge; increasing returns to scale; economy." This underscores the idea that knowledge capital, unlike physical capital, can generate increasing returns to scale at the economy-wide level, leading to persistent growth (Romer, 1990). This theory fundamentally challenges earlier views that diminishing returns would eventually halt growth, highlighting the importance of innovation and human capital accumulation for long-term prosperity.

The third question pertains to the apparent productivity slowdown documented from the mid-1970s to the mid-1990s, which some argue was a measurement artifact rather than a real decline. The correct answer is D) "A and B," as both the impact of new environmental regulations and the increasing significance of service sectors, which are harder to measure accurately, contributed to the perceived slowdown (Bureau of Labor Statistics, 2001). These factors complicated productivity measurement, leading some economists to suggest that the slowdown was illusory rather than real.

The fourth question addresses the perceived resurgence in productivity growth starting in the mid-1990s, driven by technological innovations. The correct answer is C) "Information and communication innovations are increasingly geared toward improving business processes and not consumer products." While advances such as cell phones, internet, and faster computers have undoubtedly contributed, the main driver of the recent productivity revival has been the application of information technologies to reorganize and improve business processes, resulting in efficiency gains across industries (Brynjolfsson & McAfee, 2014). This phenomenon underscores the role of technological innovation not merely in producing new consumer gadgets but in transforming enterprise operations for greater productivity.

In summary, understanding the dynamics of economic growth involves examining historical patterns, technological change, and measurement issues. The Soviet Union's stagnation illustrates the limits of growth driven solely by physical capital without technological progress. Endogenous growth highlights the importance of knowledge and innovation at the macroeconomic level. The mismeasurement of productivity changes emphasizes the complexities in accurately capturing economic performance, especially in service sectors. Finally, technological innovations focusing on business process improvements serve as a catalyst for sustained productivity growth in the modern economy.

References

• Brynjolfsson, E., & McAfee, A. (2014). The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies. W. W. Norton & Company.
• Bureau of Labor Statistics. (2001). Total Factor Productivity Growth in the U.S. Economy, 1948-2000.
• Harrison, M. (2007). The Economics of the Soviet Union: A Review. Journal of Economic Perspectives, 21(4), 147–169.
• Romer, P. M. (1990). Endogenous Technological Change. Journal of Political Economy, 98(5), S71–S102.