Question 1

What is the key equation for conditional convergence and what are the direction of influences?

Accepted Answer

The key equation for condition

Question 2

An example of a rival capital good is:

Accepted Answer

A) infrastructure like roads. 
B) a machine like a printing press. 
C) an idea like a new chemical formula for a drug. 
D) all of the above. 
A) infrastructure like roads. 
B) a machine like a printing press. 
C) an idea like a new chemical formula for a drug. 
D) all of the above.

Question 3

Steady state growth is when:

Accepted Answer

A) when the average product of capital, y/k, is unchanging as k increases at a constant rate. 
B) when the rate of growth of capital per worker is constant at zero. 
C) when the rate growth of output per worker is constant at zero. 
D) all of the above. 
A) when the average product of capital, y/k, is unchanging as k increases at a constant rate. 
B) when the rate of growth of capital per worker is constant at zero. 
C) when the rate growth of output per worker is constant at zero. 
D) all of the above.

Question 4

Convergence can be seen in the data of all countries together if one holds constant:

Accepted Answer

A) the degree that democracy is maintained. 
B) changes in the terms of trade. 
C) the average rate of inflation. 
D) all of the above. 
A) the degree that democracy is maintained. 
B) changes in the terms of trade. 
C) the average rate of inflation. 
D) all of the above.

Question 5

Diffusion of technology means:

Accepted Answer

A) how many industries a technology can be used in. 
B) describes the imitation and adaptation of technology from country to country. 
C) how expensive a technology is. 
D) how many scientists had to work on a technology. 
A) how many industries a technology can be used in. 
B) describes the imitation and adaptation of technology from country to country. 
C) how expensive a technology is. 
D) how many scientists had to work on a technology.

Question 6

In the Solow growth model, the long run rate of growth of output per worker is:

Accepted Answer

A) zero 
B) negative. 
C) cyclical. 
D) positive. 
A) zero 
B) negative. 
C) cyclical. 
D) positive.

Question 7

If intellectual property rights become better secured, then:

Accepted Answer

A) the costs of R&D are greater. 
B) the costs of R&D are smaller. 
C) the private returns to R&D are greater. 
D) the private returns to R&D are smaller. 
A) the costs of R&D are greater. 
B) the costs of R&D are smaller. 
C) the private returns to R&D are greater. 
D) the private returns to R&D are smaller.

Question 8

In the Solow growth model transition, the growth rate of capital per worker is positively related to:

Accepted Answer

A) the initial capital stock per worker, k(0). 
B)    k/k. 
C) the optimum output per worker, k* 
D) all of the above. 
A) the initial capital stock per worker, k(0). 
B)    k/k. 
C) the optimum output per worker, k* 
D) all of the above.

Question 9

What is conditional convergence?

Accepted Answer

It is when similar economies c

Question 10

With steady state growth:

Accepted Answer

A) k* growth fluctuates. 
B) there is absolute convergence. 
C) (   y/y)*= g/(1-   ) 
D) all of the above. 
A) k* growth fluctuates. 
B) there is absolute convergence. 
C) (   y/y)*= g/(1-   ) 
D) all of the above.

Question 11

The private return from research and development might be less than the social return because:

Accepted Answer

A) others than just the inventor can use inventions that come out of research and development. 
B) it is encouraged by patents and copyrights. 
C) it is funded by the government. 
D) all of the above. 
A) others than just the inventor can use inventions that come out of research and development. 
B) it is encouraged by patents and copyrights. 
C) it is funded by the government. 
D) all of the above.

Question 12

In the Solow growth model, the growth rate of capital per worker is positively related to the optimum capital per worker.

Accepted Answer

A) True 
 B)False

Question 13

Absolute convergence is the tendency of economies to converge:

Accepted Answer

A) all the time. 
B) when they are similar. 
C) only when economic conditions are good. 
D) only when currencies are stable. 
A) all the time. 
B) when they are similar. 
C) only when economic conditions are good. 
D) only when currencies are stable.

Question 14

A problem with the constant average product of capital growth model is that:

Accepted Answer

A) a common view among economist is that the average product of capital eventually starts to fall as capital rises. 
B) output per worker grows in the long run. 
C) the Y/K ratio grows. 
D) all of the above. 
A) a common view among economist is that the average product of capital eventually starts to fall as capital rises. 
B) output per worker grows in the long run. 
C) the Y/K ratio grows. 
D) all of the above.

Question 15

In the key equation for convergence   , y* is:

Accepted Answer

A) the initial level of output. 
B) the initial level of output per worker. 
C) the optimum level of output. 
D) the optimum level of output per worker. 
A) the initial level of output. 
B) the initial level of output per worker. 
C) the optimum level of output. 
D) the optimum level of output per worker.

Question 16

In the key equation for convergence   , y(0) is:

Accepted Answer

A) the initial level of output. 
B) the initial level of output per worker. 
C) the optimum level of output. 
D) the optimum level of output per worker. 
A) the initial level of output. 
B) the initial level of output per worker. 
C) the optimum level of output. 
D) the optimum level of output per worker.

Question 17

Governments grant patents and copyrights to encourage firms to engage in research and development.

Accepted Answer

A) True 
 B)False

Question 18

The rewards to private R&D are negatively related to:

Accepted Answer

A) the costs of R&D. 
B) the rewards from the results of R&D. 
C) the security of intellectual property rights. 
D) all of the above. 
A) the costs of R&D. 
B) the rewards from the results of R&D. 
C) the security of intellectual property rights. 
D) all of the above.

Question 19

In the Solow growth model with technological progress in the optimal amount of capital per worker is

Accepted Answer

A) growing. 
B) shrinking. 
C) cyclical. 
D) fluctuating. 
A) growing. 
B) shrinking. 
C) cyclical. 
D) fluctuating.

Question 20

An example of a rival capital good is:

Accepted Answer

A) an employee like an R&D engineer. 
B) a machine like a printing press. 
C) a structure like a factory. 
D) all of the above. 
A) an employee like an R&D engineer. 
B) a machine like a printing press. 
C) a structure like a factory. 
D) all of the above.

What is the key equation for conditional convergence and what are the direction of influences?

An example of a rival capital good is:

Steady state growth is when:

Convergence can be seen in the data of all countries together if one holds constant:

Diffusion of technology means:

In the Solow growth model, the long run rate of growth of output per worker is:

If intellectual property rights become better secured, then:

In the Solow growth model transition, the growth rate of capital per worker is positively related to:

What is conditional convergence?

With steady state growth:

The private return from research and development might be less than the social return because:

In the Solow growth model, the growth rate of capital per worker is positively related to the optimum capital per worker.

Absolute convergence is the tendency of economies to converge:

A problem with the constant average product of capital growth model is that:

In the key equation for convergence , y* is:

In the key equation for convergence , y(0) is:

Governments grant patents and copyrights to encourage firms to engage in research and development.

The rewards to private R&D are negatively related to:

In the Solow growth model with technological progress in the optimal amount of capital per worker is

An example of a rival capital good is:

Thinking About Macroeconomics

National-Income Accounting: Gross Domestic Product and the Price Level

Introduction to Economic Growth

Working With the Solow Growth Model

Macroeconomics Without Microeconomic Foundations

Markets, Prices, Supply, and Demand

Consumption, Saving, and Investment

An Equilibrium Business-Cycle Model

Capital Utilization and Unemployment

The Demand for Money and the Price Level

Inflation, Money Growth, and Interest Rates

Government Expenditure

Taxes

Public Debt

Money and Business Cycles I: the Price-Misperceptions Model

Money and Business Cycles Ii: Sticky Prices and Nominal Wage Rates

World Markets in Goods and Credit

Exchange Rates

Filters

Exam 5: Conditional Convergence and Long-Run Economic Growth

What is the key equation for conditional convergence and what are the direction of influences?

An example of a rival capital good is:

Steady state growth is when:

Convergence can be seen in the data of all countries together if one holds constant:

Diffusion of technology means:

In the Solow growth model, the long run rate of growth of output per worker is:

If intellectual property rights become better secured, then:

In the Solow growth model transition, the growth rate of capital per worker is positively related to:

What is conditional convergence?

With steady state growth:

The private return from research and development might be less than the social return because:

In the Solow growth model, the growth rate of capital per worker is positively related to the optimum capital per worker.

Absolute convergence is the tendency of economies to converge:

A problem with the constant average product of capital growth model is that:

In the key equation for convergence , y* is:

In the key equation for convergence , y(0) is:

Governments grant patents and copyrights to encourage firms to engage in research and development.

The rewards to private R&D are negatively related to:

In the Solow growth model with technological progress in the optimal amount of capital per worker is

An example of a rival capital good is:

Thinking About Macroeconomics

National-Income Accounting: Gross Domestic Product and the Price Level

Introduction to Economic Growth

Working With the Solow Growth Model

Macroeconomics Without Microeconomic Foundations

Markets, Prices, Supply, and Demand

Consumption, Saving, and Investment

An Equilibrium Business-Cycle Model

Capital Utilization and Unemployment

The Demand for Money and the Price Level

Inflation, Money Growth, and Interest Rates

Government Expenditure

Taxes

Public Debt

Money and Business Cycles I: the Price-Misperceptions Model

Money and Business Cycles Ii: Sticky Prices and Nominal Wage Rates

World Markets in Goods and Credit

Exchange Rates

Filters