Growth, Productivity and Why Some Countries Got Rich · seed 1 · A4, ink-friendly. The answer key prints on its own page for grown-ups.

Why hours do not make nations rich

Civics & Economics · Economics · ages 16-18
Name ______________________   Date ____________
  1. Korea grows at 4 percent yearly while the US grows at 2 percent. What happens?

    • Korea doubles slower than the US
    • Both double at the same speed
    • Korea doubles roughly twice as fast
  2. What drives living standards over decades?

    • Output per hour
    • Total hours worked
    • Total soil fertility
  3. Working longer hours cannot make a country rich on its own.

    Circle one:   True   False

  4. Why do property rights and honest courts raise growth?

    • No factory is built to be seized
    • Seizures encourage more factories
    • Courts matter only for criminals
  5. Which trio raises productivity?

    • Longer shifts, richer soil, harder summers
    • Better looms, trained workers, courts that guard property
    • More holidays, older machines, weaker schools
  6. How did Korea and Taiwan sprint without proving America was regressing?

    • By inventing everything from scratch first
    • By working the longest hours on earth
    • By copying tools already invented abroad
  7. Which explanation for riches fails against the evidence?

    • Rich soil alone; Korea passed richer lands
    • Secure courts, since seizures scare builders
    • Open trade, since copying needs contact
  8. A copier has installed every foreign machine. What comes next?

    • Its rich soil guarantees wealth
    • Its sprint ends and home-grown ideas must take over
    • Its hours must triple to keep growing
LightMySky · lightmysky.comW1-mt_n6KY-0vlw_-s1

Answer key

For grown-ups. Fold this page away before handing over the rest.

Why hours do not make nations rich W1-mt_n6KY-0vlw_-s1

  1. Korea doubles roughly twice as fast · Small rate gaps compound like savings, so the gap narrows fast and then closes.
  2. Output per hour · Machines, skills, and power multiply each hour, while long days with hand tools stay poor.
  3. True · Extra hours add output once, while better output per hour raises every future hour.
  4. No factory is built to be seized · Secure profits turn tools and skills into growth, since firms can plan ahead.
  5. Better looms, trained workers, courts that guard property · Physical capital, human capital, and safe institutions feed output per hour together.
  6. By copying tools already invented abroad · Copying proven technology is far cheaper than pushing the frontier, so followers sprint.
  7. Rich soil alone; Korea passed richer lands · Soil explains little when poor-soil sprinters overtake richer lands with tools and rules.
  8. Its sprint ends and home-grown ideas must take over · Once copied machines are installed, further gains need new ideas, skills, and daring firms.
Worksheet · LightMySky