Question 1

In both the computer memory chip industry and the Liberty ship program, unit costs declined:

Accepted Answer

A)  about 50 percent per year. 
B)  about 10 percent with each new ship or chip produced. 
C)  about 20 percent with each doubling of output. 
D)  about 50 percent with each doubling of output. 
A)  about 50 percent per year. 
B)  about 10 percent with each new ship or chip produced. 
C)  about 20 percent with each doubling of output. 
D)  about 50 percent with each doubling of output. C

Question 2

Learning-by-doing example: During World War II, the Liberty ship program saw unit costs decline:

Accepted Answer

A)  about 50% a year. 
B)  about 12-24% with each doubling of output. 
C)  about 25-50% with each doubling of output. 
D)  none of the above. 
A)  about 50% a year. 
B)  about 12-24% with each doubling of output. 
C)  about 25-50% with each doubling of output. 
D)  none of the above. B

Question 3

In Rebelo's AK model, the parameter α in the production function y = Akα is:

Accepted Answer

A)  α = 1. 
B)  α  1. 
D)  0 < α < 1. 
A)  α = 1. 
B)  α  1. 
D)  0 < α < 1. A

Question 4

The S-curve graphically illustrates:

Accepted Answer

A)  the relationship between the rate at which capital gets worn out and time. 
B)  the relationship between educational attainment levels and technological progress. 
C)  the relationship between the diffusion of technology and time. 
D)  the relationship between saving rates and technological progress. 
A)  the relationship between the rate at which capital gets worn out and time. 
B)  the relationship between educational attainment levels and technological progress. 
C)  the relationship between the diffusion of technology and time. 
D)  the relationship between saving rates and technological progress.

Question 5

Which of the following products was quickest to develop and spread in popularity?

Accepted Answer

A)  Electric motors. 
B)  Computers. 
C)  Automobiles. 
D)  It is difficult to say which one developed quicker, given that each built on earlier ideas. 
A)  Electric motors. 
B)  Computers. 
C)  Automobiles. 
D)  It is difficult to say which one developed quicker, given that each built on earlier ideas.

Question 6

In the AK model, the capital stock grows according to:

Accepted Answer

A)  gk = σA - δ. 
B)  gk = σAk - δ. 
C)  gk = Akα - δ. 
D)  gk = 0. 
A)  gk = σA - δ. 
B)  gk = σAk - δ. 
C)  gk = Akα - δ. 
D)  gk = 0.

Question 7

The Solow residual is estimated using the following equation:

Accepted Answer

A)  r = gY - αgK - (1-α)gL. 
B)  r = gy + αgk. 
C)  r = gy + αgk + Z. 
D)  r = gY + αgK + (1-α)gL. 
A)  r = gY - αgK - (1-α)gL. 
B)  r = gy + αgk. 
C)  r = gy + αgk + Z. 
D)  r = gY + αgK + (1-α)gL.

Question 8

One of the issues not dealt with in most studies of total factor productivity but specifically addressed in Fuess and Van den Berg's studies is:

Accepted Answer

A)  intensity of capital use. 
B)  depreciation of human capital. 
C)  the inclusion of household activity in the measure of the economy's total output. 
D)  All of the above. 
E)  None of the above. 
A)  intensity of capital use. 
B)  depreciation of human capital. 
C)  the inclusion of household activity in the measure of the economy's total output. 
D)  All of the above. 
E)  None of the above.

Question 9

Nearly a century ago, Alfred Marshall (1920) devoted an entire chapter of his popular economics textbook to the Concentration of Specialized Industries in Particular Localities. Marshall attributed concentration to three factors. Which of the following is not one of the factors that Marshall mentioned?

Accepted Answer

A)  industries are prone to concentration because of the availability of specialized labor. 
B)  industries are prone to concentration because of the development of specialized suppliers of intermediate goods and services. 
C)  industries are prone to concentration because of the flows of technology between the industries. 
D)  industries are prone to concentration because of geographic proximity to institutions of higher learning. 
A)  industries are prone to concentration because of the availability of specialized labor. 
B)  industries are prone to concentration because of the development of specialized suppliers of intermediate goods and services. 
C)  industries are prone to concentration because of the flows of technology between the industries. 
D)  industries are prone to concentration because of geographic proximity to institutions of higher learning.

Question 10

Technological progress:

Accepted Answer

A)  is similar no matter where it occurs and can be modeled by a single model. 
B)  is diverse and probably requires several different models. 
C)  is always intentional and costly, and thus the Schumpeterian R&D model is the correct model of technological progress. 
D)  eliminates diminishing returns, which means the AK model is the correct model of technological progress. 
A)  is similar no matter where it occurs and can be modeled by a single model. 
B)  is diverse and probably requires several different models. 
C)  is always intentional and costly, and thus the Schumpeterian R&D model is the correct model of technological progress. 
D)  eliminates diminishing returns, which means the AK model is the correct model of technological progress.

Question 11

Evidence of learning-by-doing has been found in the following industries:

Accepted Answer

A)  wartime shipbuilding. 
B)  wartime aircraft production. 
C)  computer memory chips. 
D)  All of the above. 
E)  None of the above. 
A)  wartime shipbuilding. 
B)  wartime aircraft production. 
C)  computer memory chips. 
D)  All of the above. 
E)  None of the above.

Question 12

Technological progress has been characterized as:

Accepted Answer

A)  path dependent. 
B)  incremental. 
C)  continuous. 
D)  All of the above. 
E)  None of the above. 
A)  path dependent. 
B)  incremental. 
C)  continuous. 
D)  All of the above. 
E)  None of the above.

Question 13

The learning-by-doing model:

Accepted Answer

A)  exhibits increasing returns to scale. 
B)  generates permanent economic growth as long as population remains constant. 
C)  specifies output as a function of the size of the labor force. 
D)  specifies that the rate of learning increases as cumulative output increases. 
E)  All of the above. 
A)  exhibits increasing returns to scale. 
B)  generates permanent economic growth as long as population remains constant. 
C)  specifies output as a function of the size of the labor force. 
D)  specifies that the rate of learning increases as cumulative output increases. 
E)  All of the above.

Question 14

Among the characteristics of technology is/are:

Accepted Answer

A)  technological progress is often the result of intentional, costly activity. 
B)  technology consists of a complex set of knowledge, ideas, and methods. 
C)  it is often nonrival and nonexcludable. 
D)  All of the above. 
E)  None of the above. 
A)  technological progress is often the result of intentional, costly activity. 
B)  technology consists of a complex set of knowledge, ideas, and methods. 
C)  it is often nonrival and nonexcludable. 
D)  All of the above. 
E)  None of the above.

Question 15

A measure of an economy's technological progress can be found if there is data on:

Accepted Answer

A)  the growth of labor and capital, the income shares of labor and capital, and the growth of total output (GDP). 
B)  the growth of output and the growth of population. 
C)  the economy's expenditures on education. 
D)  the economy's level of investment, depreciation, and population growth. 
A)  the growth of labor and capital, the income shares of labor and capital, and the growth of total output (GDP). 
B)  the growth of output and the growth of population. 
C)  the economy's expenditures on education. 
D)  the economy's level of investment, depreciation, and population growth.

Question 16

Externalities:

Accepted Answer

A)  are incidental by-products of some other economic activity or activities not taken into consideration by those engaged in that other economic activity. 
B)  make modeling economic growth more difficult because the assumption of perfect competition must be abandoned. 
C)  are the results of economic activity that have no noticeable costs or benefits. 
D)  occur very seldom in the real world. 
A)  are incidental by-products of some other economic activity or activities not taken into consideration by those engaged in that other economic activity. 
B)  make modeling economic growth more difficult because the assumption of perfect competition must be abandoned. 
C)  are the results of economic activity that have no noticeable costs or benefits. 
D)  occur very seldom in the real world.

Question 17

The AK model generates permanent economic growth despite the absence of technological progress. Per worker output, y, grows at the economy's rate according to the AK model.

Accepted Answer

A)  population growth. 
B)  capital growth. 
C)  depreciation. 
D)  saving. 
A)  population growth. 
B)  capital growth. 
C)  depreciation. 
D)  saving.

Question 18

Which of the following is not one of the ways in which technological progress grows as a result of an externality?

Accepted Answer

A)  technology grows through the process of investment. 
B)  technology grows through increasing returns to scale. 
C)  technology grows through the process of international trade. 
D)  technology grows through decreasing returns to scale. 
A)  technology grows through the process of investment. 
B)  technology grows through increasing returns to scale. 
C)  technology grows through the process of international trade. 
D)  technology grows through decreasing returns to scale.

Question 19

Paul Romer's definition of technology includes:

Accepted Answer

A)  institutions. 
B)  production methods. 
C)  managerial procedures. 
D)  All of the above. 
E)  None of the above. 
A)  institutions. 
B)  production methods. 
C)  managerial procedures. 
D)  All of the above. 
E)  None of the above.

Question 20

A learning curve relates:

Accepted Answer

A)  the costs of production to the education of the labor force. 
B)  the amount of knowledge acquired with additional years of schooling. 
C)  salaries to the amount of schooling. 
D)  per unit costs of production of a certain product to its cumulative production. 
A)  the costs of production to the education of the labor force. 
B)  the amount of knowledge acquired with additional years of schooling. 
C)  salaries to the amount of schooling. 
D)  per unit costs of production of a certain product to its cumulative production.

In both the computer memory chip industry and the Liberty ship program, unit costs declined:

Learning-by-doing example: During World War II, the Liberty ship program saw unit costs decline:

In Rebelo's AK model, the parameter α in the production function y = Ak^α is:

The S-curve graphically illustrates:

Which of the following products was quickest to develop and spread in popularity?

In the AK model, the capital stock grows according to:

The Solow residual is estimated using the following equation:

One of the issues not dealt with in most studies of total factor productivity but specifically addressed in Fuess and Van den Berg's studies is:

Technological progress:

Evidence of learning-by-doing has been found in the following industries:

Technological progress has been characterized as:

The learning-by-doing model:

Among the characteristics of technology is/are:

A measure of an economy's technological progress can be found if there is data on:

Externalities:

The AK model generates permanent economic growth despite the absence of technological progress. Per worker output, y, grows at the economy's rate according to the AK model.

Which of the following is not one of the ways in which technological progress grows as a result of an externality?

Paul Romer's definition of technology includes:

A learning curve relates:

The Welfare Gains From Trade

Trade and Growth: the Empirical Evidence

International Trade and Factor Accumulation

Technological Progress As Creative Destruction

International Trade and Technological Progress

Multi-Sector Models and International Trade

International Trade and Technology Transfers

Restating the Case for Free Trade

Filters

Exam 4: Overcoming Diminishing Returns: Technology As an Externality

In both the computer memory chip industry and the Liberty ship program, unit costs declined:

Learning-by-doing example: During World War II, the Liberty ship program saw unit costs decline:

In Rebelo's AK model, the parameter α in the production function y = Akα is:

The S-curve graphically illustrates:

Which of the following products was quickest to develop and spread in popularity?

In the AK model, the capital stock grows according to:

The Solow residual is estimated using the following equation:

One of the issues not dealt with in most studies of total factor productivity but specifically addressed in Fuess and Van den Berg's studies is:

Technological progress:

Evidence of learning-by-doing has been found in the following industries:

Technological progress has been characterized as:

The learning-by-doing model:

Among the characteristics of technology is/are:

A measure of an economy's technological progress can be found if there is data on:

Externalities:

The AK model generates permanent economic growth despite the absence of technological progress. Per worker output, y, grows at the economy's rate according to the AK model.

Which of the following is not one of the ways in which technological progress grows as a result of an externality?

Paul Romer's definition of technology includes:

A learning curve relates:

The Welfare Gains From Trade

Trade and Growth: the Empirical Evidence

International Trade and Factor Accumulation

Technological Progress As Creative Destruction

International Trade and Technological Progress

Multi-Sector Models and International Trade

International Trade and Technology Transfers

Restating the Case for Free Trade

Filters

In Rebelo's AK model, the parameter α in the production function y = Ak^α is: