Question 1

The Malthusian model performs poorly in explaining economic growth after the

Accepted Answer

A)  French Revolution. 
B)  American Revolution. 
C)  Industrial Revolution. 
D)  Bio-technology Revolution. 
E)  Second World War. 
A)  French Revolution. 
B)  American Revolution. 
C)  Industrial Revolution. 
D)  Bio-technology Revolution. 
E)  Second World War. C

Question 2

The Solow model suggests that,to improve a country's standard of living in the long run,

Accepted Answer

A)  people have to be more educated. 
B)  more natural resources must be found. 
C)  production technology must become more efficient. 
D)  standards of living must increase. 
E)  total factor productivity must decline. 
A)  people have to be more educated. 
B)  more natural resources must be found. 
C)  production technology must become more efficient. 
D)  standards of living must increase. 
E)  total factor productivity must decline. C

Question 3

In the Malthusian model,when z increases,initially consumption

Accepted Answer

A)  decreases and remains below the original steady state level forever. 
B)  decreases and then increases to its steady state level. 
C)  increases and then falls to its steady state level. 
D)  is unaffected by the change in z. 
E)  increases and remains above the original steady state level forever. 
A)  decreases and remains below the original steady state level forever. 
B)  decreases and then increases to its steady state level. 
C)  increases and then falls to its steady state level. 
D)  is unaffected by the change in z. 
E)  increases and remains above the original steady state level forever. C

Question 4

Countries in which a relatively small fraction of output is channeled into investment tend to have a

Accepted Answer

A)  relatively high rate of consumption. 
B)  relatively low rate of population growth. 
C)  relatively low standard of living. 
D)  relatively high level of capital stock. 
E)  relatively high level of government spending. 
A)  relatively high rate of consumption. 
B)  relatively low rate of population growth. 
C)  relatively low standard of living. 
D)  relatively high level of capital stock. 
E)  relatively high level of government spending.

Question 5

Which of the following is not different between the Solow and Malthusian models?

Accepted Answer

A)  The production function has decreasing marginal returns. 
B)  Households save. 
C)  Population growth is exogenous. 
D)  There is capital accumulation. 
E)  Advances in technology can sustain economic growth. 
A)  The production function has decreasing marginal returns. 
B)  Households save. 
C)  Population growth is exogenous. 
D)  There is capital accumulation. 
E)  Advances in technology can sustain economic growth.

Question 6

When capital is accumulated at the rate that maximizes consumption per worker in the steady state,the marginal product of capital is equal to the

Accepted Answer

A)  savings rate plus the population growth rate. 
B)  population growth rate plus the depreciation rate. 
C)  depreciation rate plus the savings rate. 
D)  savings rate divided by the marginal product of labour. 
E)  consumption per worker plus the population growth rate. 
A)  savings rate plus the population growth rate. 
B)  population growth rate plus the depreciation rate. 
C)  depreciation rate plus the savings rate. 
D)  savings rate divided by the marginal product of labour. 
E)  consumption per worker plus the population growth rate.

Question 7

Total factor productivity can be influenced by

Accepted Answer

A)  new inventions. 
B)  less capital. 
C)  more labour. 
D)  increases in the price of inputs. 
E)  consumption per worker. 
A)  new inventions. 
B)  less capital. 
C)  more labour. 
D)  increases in the price of inputs. 
E)  consumption per worker.

Question 8

The Golden Rule Quantity of capital per worker maximizes the steady-state level of

Accepted Answer

A)  output per worker. 
B)  capital per worker. 
C)  consumption per worker. 
D)  investment per worker. 
E)  savings per worker. 
A)  output per worker. 
B)  capital per worker. 
C)  consumption per worker. 
D)  investment per worker. 
E)  savings per worker.

Question 9

In an exogenous growth model,growth is caused by

Accepted Answer

A)  capital accumulation. 
B)  government policies. 
C)  human capital accumulation. 
D)  forces that are not explained by the model itself. 
E)  total factor productivity. 
A)  capital accumulation. 
B)  government policies. 
C)  human capital accumulation. 
D)  forces that are not explained by the model itself. 
E)  total factor productivity.

Question 10

Recent evidence suggests that the level of output per worker is

Accepted Answer

A)  positively correlated with the growth rate in output per worker. 
B)  negatively correlated with the rate of population growth. 
C)  positively correlated with the rate of population growth. 
D)  negatively correlated with growth rate in output per worker. 
E)  not correlated with the growth rate in output per worker. 
A)  positively correlated with the growth rate in output per worker. 
B)  negatively correlated with the rate of population growth. 
C)  positively correlated with the rate of population growth. 
D)  negatively correlated with growth rate in output per worker. 
E)  not correlated with the growth rate in output per worker.

Question 11

One plausible explanation of the Canadian productivity slowdown starting in 1973 is that it was the result of the time needed to adapt to new technology.This explanation would require that

Accepted Answer

A)  workers withdraw from the labor force to learn about the new technology. 
B)  a large number of new entrants be attracted to the labor force. 
C)  managers be reluctant to adopt changes. 
D)  workers time at their jobs be diverted from production to learning the technology. 
E)  little time was spent to learn the new technology. 
A)  workers withdraw from the labor force to learn about the new technology. 
B)  a large number of new entrants be attracted to the labor force. 
C)  managers be reluctant to adopt changes. 
D)  workers time at their jobs be diverted from production to learning the technology. 
E)  little time was spent to learn the new technology.

Question 12

Growth in real GDP per-capita in Canada is roughly consistent with which of the following predictions of the Solow model?

Accepted Answer

A)  a constant growth rate in the growth rate of the labour force 
B)  a steady increase in the savings rate 
C)  a convergence with lower income countries 
D)  convergence to a steady state level of real GDP per-capita 
E)  exogenous TFP growth at a constant rate 
A)  a constant growth rate in the growth rate of the labour force 
B)  a steady increase in the savings rate 
C)  a convergence with lower income countries 
D)  convergence to a steady state level of real GDP per-capita 
E)  exogenous TFP growth at a constant rate

Question 13

The high growth rate in aggregate output in Canada during 1991-2001 was due to

Accepted Answer

A)  an increase in the capital stock. 
B)  an increase in the labour force. 
C)  an increase in total factor productivity growth. 
D)  the higher prices of energy. 
E)  strong growth in the service sector. 
A)  an increase in the capital stock. 
B)  an increase in the labour force. 
C)  an increase in total factor productivity growth. 
D)  the higher prices of energy. 
E)  strong growth in the service sector.

Question 14

In Solow's model of economic growth,suppose that s represents the savings rate,z represents total factor productivity,k represents the level of capital per worker,and f(k)represents the per worker production function.Also suppose that n represents the population growth rate and d represents the depreciation rate of capital.The equilibrium level of capital per worker,k*,will satisfy the equation:

Accepted Answer

A)    
B)    
C)    
D)    
E)    
A)    
B)    
C)    
D)    
E)

Question 15

The Solow growth model predicts that a country's standard of living can continue to increase in the long run only if

Accepted Answer

A)  there is sustained increases in the capital stock. 
B)  there is sustained increases in the population. 
C)  there is sustained increases in the labour force. 
D)  there is sustained increases in government spending. 
E)  there is sustained increases in total factor productivity. 
A)  there is sustained increases in the capital stock. 
B)  there is sustained increases in the population. 
C)  there is sustained increases in the labour force. 
D)  there is sustained increases in government spending. 
E)  there is sustained increases in total factor productivity.

Question 16

Human capital is

Accepted Answer

A)  the level of capital per-capita. 
B)  a measure of the effects of capital on labour productivity. 
C)  a measure of the stock of skills and education a person possesses. 
D)  the most important factor explaining differences in incomes across countries. 
E)  not a factor that can explain differences in incomes across countries. 
A)  the level of capital per-capita. 
B)  a measure of the effects of capital on labour productivity. 
C)  a measure of the stock of skills and education a person possesses. 
D)  the most important factor explaining differences in incomes across countries. 
E)  not a factor that can explain differences in incomes across countries.

Question 17

On average,from 1960-2000,real GDP in Canada grew around

Accepted Answer

A)  2.3%. 
B)  0.6%. 
C)  8.7%. 
D)  4.1%. 
E)  -1.2%. 
A)  2.3%. 
B)  0.6%. 
C)  8.7%. 
D)  4.1%. 
E)  -1.2%.

Question 18

A pessimistic long run Malthusian result is

Accepted Answer

A)  increases in land use lowers standards of living. 
B)  higher labour supply does not increase total factor productivity. 
C)  increases in capital stock does not achieve the steady state. 
D)  improvements in technology does not improve standards of living. 
E)  population control does not increase total factor productivity. 
A)  increases in land use lowers standards of living. 
B)  higher labour supply does not increase total factor productivity. 
C)  increases in capital stock does not achieve the steady state. 
D)  improvements in technology does not improve standards of living. 
E)  population control does not increase total factor productivity.

Question 19

Recent evidence suggests that output per worker is

Accepted Answer

A)  positively related to both the rate of investment and to the rate of population growth. 
B)  positively related to the rate of investment and negatively related to the rate of population growth. 
C)  negatively related to the rate of investment and positively related to the rate of population growth. 
D)  negatively related to both the rate of investment and to the rate of population growth. 
E)  negatively related to the rate of investment and not related at all to the rate of population growth. 
A)  positively related to both the rate of investment and to the rate of population growth. 
B)  positively related to the rate of investment and negatively related to the rate of population growth. 
C)  negatively related to the rate of investment and positively related to the rate of population growth. 
D)  negatively related to both the rate of investment and to the rate of population growth. 
E)  negatively related to the rate of investment and not related at all to the rate of population growth.

Question 20

In the Malthusian model,the steady state effects of an increase in z are to

Accepted Answer

A)  decrease the quantity of land per worker, increase the population, and leave consumption per worker unchanged. 
B)  increase the quantity of land per worker, increase the population, and leave consumption per worker unchanged. 
C)  decrease the quantity of land per worker, increase the population, and increase consumption per worker 
D)  decrease the quantity of land per worker, decrease the population, and leave consumption per worker unchanged 
E)  shift the production function upwards, but leave the steady state unchanged. 
A)  decrease the quantity of land per worker, increase the population, and leave consumption per worker unchanged. 
B)  increase the quantity of land per worker, increase the population, and leave consumption per worker unchanged. 
C)  decrease the quantity of land per worker, increase the population, and increase consumption per worker 
D)  decrease the quantity of land per worker, decrease the population, and leave consumption per worker unchanged 
E)  shift the production function upwards, but leave the steady state unchanged.

The Malthusian model performs poorly in explaining economic growth after the

The Solow model suggests that,to improve a country's standard of living in the long run,

In the Malthusian model,when z increases,initially consumption

Countries in which a relatively small fraction of output is channeled into investment tend to have a

Which of the following is not different between the Solow and Malthusian models?

When capital is accumulated at the rate that maximizes consumption per worker in the steady state,the marginal product of capital is equal to the

Total factor productivity can be influenced by

The Golden Rule Quantity of capital per worker maximizes the steady-state level of

In an exogenous growth model,growth is caused by

Recent evidence suggests that the level of output per worker is

One plausible explanation of the Canadian productivity slowdown starting in 1973 is that it was the result of the time needed to adapt to new technology.This explanation would require that

Growth in real GDP per-capita in Canada is roughly consistent with which of the following predictions of the Solow model?

The high growth rate in aggregate output in Canada during 1991-2001 was due to

The Solow growth model predicts that a country's standard of living can continue to increase in the long run only if

Human capital is

On average,from 1960-2000,real GDP in Canada grew around

A pessimistic long run Malthusian result is

Recent evidence suggests that output per worker is

In the Malthusian model,the steady state effects of an increase in z are to

Introduction

Measurement

Business Cycle Measurement

Consumer and Firm Behavior: The Work–Leisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Income Disparity Among Countries and Endogenous Growth

A Two-Period Model: The Consumption–Savings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

A Real Intertemporal Model with Investment

Money, Banking, Prices, and Monetary Policy

Business Cycle Models with Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

Inflation: Phillips Curves and Neo-Fisherism

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking: A Deeper Look

Filters

Exam 7: Economic Growth: Malthus and Solow

The Malthusian model performs poorly in explaining economic growth after the

The Solow model suggests that,to improve a country's standard of living in the long run,

In the Malthusian model,when z increases,initially consumption

Countries in which a relatively small fraction of output is channeled into investment tend to have a

Which of the following is not different between the Solow and Malthusian models?

When capital is accumulated at the rate that maximizes consumption per worker in the steady state,the marginal product of capital is equal to the

Total factor productivity can be influenced by

The Golden Rule Quantity of capital per worker maximizes the steady-state level of

In an exogenous growth model,growth is caused by

Recent evidence suggests that the level of output per worker is

One plausible explanation of the Canadian productivity slowdown starting in 1973 is that it was the result of the time needed to adapt to new technology.This explanation would require that

Growth in real GDP per-capita in Canada is roughly consistent with which of the following predictions of the Solow model?

The high growth rate in aggregate output in Canada during 1991-2001 was due to

The Solow growth model predicts that a country's standard of living can continue to increase in the long run only if

Human capital is

On average,from 1960-2000,real GDP in Canada grew around

A pessimistic long run Malthusian result is

Recent evidence suggests that output per worker is

In the Malthusian model,the steady state effects of an increase in z are to

Introduction

Measurement

Business Cycle Measurement

Consumer and Firm Behavior: The Work–Leisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Income Disparity Among Countries and Endogenous Growth

A Two-Period Model: The Consumption–Savings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

A Real Intertemporal Model with Investment

Money, Banking, Prices, and Monetary Policy

Business Cycle Models with Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

Inflation: Phillips Curves and Neo-Fisherism

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking: A Deeper Look

Filters