Question 1

Govenment policies that increase the efficiency of the education sector

Accepted Answer

A)  increase the growth rate of output and consumption, unambiguously increasing welfare. 
B)  increase the growth rate of output but have an ambiguous impact on consumption growth and welfare. 
C)  increase the growth rate of consumption, has no effect on output. 
D)  increase welfare but have ambiguous effects on growth rates of consumption and output. 
E)  imply a trade-off between accumulating human capital and physical capital. 
A)  increase the growth rate of output and consumption, unambiguously increasing welfare. 
B)  increase the growth rate of output but have an ambiguous impact on consumption growth and welfare. 
C)  increase the growth rate of consumption, has no effect on output. 
D)  increase welfare but have ambiguous effects on growth rates of consumption and output. 
E)  imply a trade-off between accumulating human capital and physical capital. A

Question 2

In the context of the Solow growth model,so-called growth miracles,such as Japan,South Korea,Singapore and Hong Kong are most easily explained by

Accepted Answer

A)  reductions in the population growth rate. 
B)  increases in the savings rate. 
C)  removal of barriers to technology. 
D)  improvements in public health. 
E)  promoting free trade. 
A)  reductions in the population growth rate. 
B)  increases in the savings rate. 
C)  removal of barriers to technology. 
D)  improvements in public health. 
E)  promoting free trade. C

Question 3

A study by M.Bils and P.Klenow suggests that the importance of education in economic growth si also tied to

Accepted Answer

A)  property rights. 
B)  physical capital. 
C)  convergence. 
D)  population growth. 
E)  taxes. 
A)  property rights. 
B)  physical capital. 
C)  convergence. 
D)  population growth. 
E)  taxes. A

Question 4

Paul Romer argues that a key feature of knowledge is

Accepted Answer

A)  divisibility. 
B)  private ownership. 
C)  nonrivalry. 
D)  durability. 
E)  physical capital. 
A)  divisibility. 
B)  private ownership. 
C)  nonrivalry. 
D)  durability. 
E)  physical capital.

Question 5

Evidence suggests that income per worker and education are

Accepted Answer

A)  negatively correlated. 
B)  positively correlated. 
C)  uncorrelated. 
D)  positively correlated in the richer countries and negatively correlated in the poorer countries. 
E)  negatively correlated in the richer countries and positively correlated in the poor countries. 
A)  negatively correlated. 
B)  positively correlated. 
C)  uncorrelated. 
D)  positively correlated in the richer countries and negatively correlated in the poorer countries. 
E)  negatively correlated in the richer countries and positively correlated in the poor countries.

Question 6

According to research by Charles Jones and Peter Klenow,using a broader measure of welfare than real GDP,

Accepted Answer

A)  Americans are better off than Canadians. 
B)  Canadians and Americans are equally as well off. 
C)  Canadians are better off than Americans. 
D)  France is better off than the U.S. 
E)  France is better off than Canada. 
A)  Americans are better off than Canadians. 
B)  Canadians and Americans are equally as well off. 
C)  Canadians are better off than Americans. 
D)  France is better off than the U.S. 
E)  France is better off than Canada.

Question 7

Suppose a country is significantly richer than the others.According to the Solow growth model,what happens in the long-run?

Accepted Answer

A)  The other countries catch up to the rich one. 
B)  Nothing. 
C)  The rich country becomes poorer than the other ones. 
D)  The rich country grows the fastest. 
E)  Both grow at the same rate and the income differences persist. 
A)  The other countries catch up to the rich one. 
B)  Nothing. 
C)  The rich country becomes poorer than the other ones. 
D)  The rich country grows the fastest. 
E)  Both grow at the same rate and the income differences persist.

Question 8

In the endogenous growth models of Lucas and Romer,human capital accumulation is best described as a form of

Accepted Answer

A)  consumption. 
B)  investment. 
C)  government spending. 
D)  natural resource. 
E)  total factor productivity. 
A)  consumption. 
B)  investment. 
C)  government spending. 
D)  natural resource. 
E)  total factor productivity.

Question 9

In the endogenous growth model presented in the text,an increase in the fraction of time accumulating human capital

Accepted Answer

A)  increases the growth rate of human capital and increases the growth rate of output. 
B)  increases the growth rate of human capital and decreases the growth rate of output. 
C)  decreases the growth rate of human capital and increases the growth rate of output. 
D)  decreases the growth rate of human capital and decreases the growth rate of output. 
E)  decreases the growth rate of human capital and reduces total factor productivity. 
A)  increases the growth rate of human capital and increases the growth rate of output. 
B)  increases the growth rate of human capital and decreases the growth rate of output. 
C)  decreases the growth rate of human capital and increases the growth rate of output. 
D)  decreases the growth rate of human capital and decreases the growth rate of output. 
E)  decreases the growth rate of human capital and reduces total factor productivity.

Question 10

In the endogenous growth model,for the consumer more time spent working implies

Accepted Answer

A)  less human capital accumulation. 
B)  more human capital accumulation. 
C)  learning by doing human capital accumulation. 
D)  more leisure. 
E)  no effects on human capital accumulation. 
A)  less human capital accumulation. 
B)  more human capital accumulation. 
C)  learning by doing human capital accumulation. 
D)  more leisure. 
E)  no effects on human capital accumulation.

Question 11

In the endogenous growth model presented in the text,suppose that u represents the fraction of time spent working (as opposed to accumulating human capital)and b represents the efficiency of human capital accumulation.The growth rate of consumption equals

Accepted Answer

A)  u(1 - b) - 1. 
B)  1 + b(1 - u). 
C)  (1 - b)(1 - u). 
D)  b(1 - u) - 1. 
E)  b(1 - u)2. 
A)  u(1 - b) - 1. 
B)  1 + b(1 - u). 
C)  (1 - b)(1 - u). 
D)  b(1 - u) - 1. 
E)  b(1 - u)2.

Question 12

Decreasing the fraction of time devoted to working leads to

Accepted Answer

A)  higher incomes per worker. 
B)  higher consumption per worker. 
C)  increases in the fraction of time spent accumulating human capital. 
D)  lower labour supply. 
E)  a cleaner environment. 
A)  higher incomes per worker. 
B)  higher consumption per worker. 
C)  increases in the fraction of time spent accumulating human capital. 
D)  lower labour supply. 
E)  a cleaner environment.

Question 13

In the endogenous growth model presented in the text,

Accepted Answer

A)  consumption grows faster than human capital. 
B)  human capital grows faster than consumption. 
C)  both consumption and human capital grow at the same rate. 
D)  neither consumption nor human capital grows in the steady-state. 
E)  consumption and human capital grow at varying rates. 
A)  consumption grows faster than human capital. 
B)  human capital grows faster than consumption. 
C)  both consumption and human capital grow at the same rate. 
D)  neither consumption nor human capital grows in the steady-state. 
E)  consumption and human capital grow at varying rates.

Question 14

Which of the following is best characterized as being nonrivalrous?

Accepted Answer

A)  consumption goods 
B)  services 
C)  physical capital 
D)  knowledge 
E)  natural resources 
A)  consumption goods 
B)  services 
C)  physical capital 
D)  knowledge 
E)  natural resources

Question 15

For the Solow model to accurately explain the observed divergence of growth experience around the world would require

Accepted Answer

A)  differences in savings rates across countries. 
B)  differences in population growth rates across countries. 
C)  barriers to the introduction of new technologies. 
D)  inadequate educational opportunities in poor countries. 
E)  differences in consumption per worker. 
A)  differences in savings rates across countries. 
B)  differences in population growth rates across countries. 
C)  barriers to the introduction of new technologies. 
D)  inadequate educational opportunities in poor countries. 
E)  differences in consumption per worker.

Question 16

In the endogenous growth model,more time spent accumulating human capital implies

Accepted Answer

A)  less consumption in the near term, but a higher growth rate of consumption in the future. 
B)  more consumption in the near term and a higher growth rate of consumption. 
C)  less consumption in the near term and no change in the growth rate of consumption. 
D)  more consumption in both the short and long-run. 
E)  more consumption in the near term, but a lower growth rate of consumption in the future. 
A)  less consumption in the near term, but a higher growth rate of consumption in the future. 
B)  more consumption in the near term and a higher growth rate of consumption. 
C)  less consumption in the near term and no change in the growth rate of consumption. 
D)  more consumption in both the short and long-run. 
E)  more consumption in the near term, but a lower growth rate of consumption in the future.

Question 17

Parente and Prescott provide evidence that total factor productivity across countries can be explained by

Accepted Answer

A)  differences in political ideologies. 
B)  differences in economic systems. 
C)  differences in savings rates. 
D)  barriers to technology adoption. 
E)  differences in levels of human capital. 
A)  differences in political ideologies. 
B)  differences in economic systems. 
C)  differences in savings rates. 
D)  barriers to technology adoption. 
E)  differences in levels of human capital.

Question 18

Income per worker has been

Accepted Answer

A)  converging in both the rich countries and the poor countries. 
B)  converging in the rich countries, but not converging in the poor countries. 
C)  converging in the poor countries but not converging in the rich countries. 
D)  converging in neither the poor nor the rich countries. 
E)  has fluctuated significantly for both the rich and poor countries. 
A)  converging in both the rich countries and the poor countries. 
B)  converging in the rich countries, but not converging in the poor countries. 
C)  converging in the poor countries but not converging in the rich countries. 
D)  converging in neither the poor nor the rich countries. 
E)  has fluctuated significantly for both the rich and poor countries.

Question 19

In the endogenous growth models of Lucas and Romer,workers divide their time between market work and

Accepted Answer

A)  accumulating physical capital. 
B)  accumulating human capital. 
C)  trying to invent new production processes. 
D)  work at home. 
E)  leisure. 
A)  accumulating physical capital. 
B)  accumulating human capital. 
C)  trying to invent new production processes. 
D)  work at home. 
E)  leisure.

Question 20

In the context of the Solow growth model,economic growth miracles have not occurred in the richest countries of the world.The important growth miracle after World War II occurred in

Accepted Answer

A)  Mexico, Venezuela, Asia. 
B)  Sweden, Finland, Italy. 
C)  France, Germany, the U.K.. 
D)  Russia. 
E)  Japan, Singapore, Hong Kong. 
A)  Mexico, Venezuela, Asia. 
B)  Sweden, Finland, Italy. 
C)  France, Germany, the U.K.. 
D)  Russia. 
E)  Japan, Singapore, Hong Kong.

Govenment policies that increase the efficiency of the education sector

In the context of the Solow growth model,so-called growth miracles,such as Japan,South Korea,Singapore and Hong Kong are most easily explained by

A study by M.Bils and P.Klenow suggests that the importance of education in economic growth si also tied to

Paul Romer argues that a key feature of knowledge is

Evidence suggests that income per worker and education are

According to research by Charles Jones and Peter Klenow,using a broader measure of welfare than real GDP,

Suppose a country is significantly richer than the others.According to the Solow growth model,what happens in the long-run?

In the endogenous growth models of Lucas and Romer,human capital accumulation is best described as a form of

In the endogenous growth model presented in the text,an increase in the fraction of time accumulating human capital

In the endogenous growth model,for the consumer more time spent working implies

In the endogenous growth model presented in the text,suppose that u represents the fraction of time spent working (as opposed to accumulating human capital)and b represents the efficiency of human capital accumulation.The growth rate of consumption equals

Decreasing the fraction of time devoted to working leads to

In the endogenous growth model presented in the text,

Which of the following is best characterized as being nonrivalrous?

For the Solow model to accurately explain the observed divergence of growth experience around the world would require

In the endogenous growth model,more time spent accumulating human capital implies

Parente and Prescott provide evidence that total factor productivity across countries can be explained by

Income per worker has been

In the endogenous growth models of Lucas and Romer,workers divide their time between market work and

In the context of the Solow growth model,economic growth miracles have not occurred in the richest countries of the world.The important growth miracle after World War II occurred in

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

Economic Growth: Malthus and Solow

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 8: Income Disparity Among Countries and Endogenous Growth

Govenment policies that increase the efficiency of the education sector

In the context of the Solow growth model,so-called growth miracles,such as Japan,South Korea,Singapore and Hong Kong are most easily explained by

A study by M.Bils and P.Klenow suggests that the importance of education in economic growth si also tied to

Paul Romer argues that a key feature of knowledge is

Evidence suggests that income per worker and education are

According to research by Charles Jones and Peter Klenow,using a broader measure of welfare than real GDP,

Suppose a country is significantly richer than the others.According to the Solow growth model,what happens in the long-run?

In the endogenous growth models of Lucas and Romer,human capital accumulation is best described as a form of

In the endogenous growth model presented in the text,an increase in the fraction of time accumulating human capital

In the endogenous growth model,for the consumer more time spent working implies

In the endogenous growth model presented in the text,suppose that u represents the fraction of time spent working (as opposed to accumulating human capital)and b represents the efficiency of human capital accumulation.The growth rate of consumption equals

Decreasing the fraction of time devoted to working leads to

In the endogenous growth model presented in the text,

Which of the following is best characterized as being nonrivalrous?

For the Solow model to accurately explain the observed divergence of growth experience around the world would require

In the endogenous growth model,more time spent accumulating human capital implies

Parente and Prescott provide evidence that total factor productivity across countries can be explained by

Income per worker has been

In the endogenous growth models of Lucas and Romer,workers divide their time between market work and

In the context of the Solow growth model,economic growth miracles have not occurred in the richest countries of the world.The important growth miracle after World War II occurred in

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

Economic Growth: Malthus and Solow

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