Question 1

The Golden Rule of capital accumulation maximizes the steady-state level of

Accepted Answer

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

Question 2

In the Malthusian model of economic growth

Accepted Answer

A)  Per capita consumption affects birth rates and death rates. 
B)  Per capita consumption affects birth rates but not death rates. 
C)  Per capita consumption affects death rates but not birth rates. 
D)  Per capita consumption is always constant. 
A)  Per capita consumption affects birth rates and death rates. 
B)  Per capita consumption affects birth rates but not death rates. 
C)  Per capita consumption affects death rates but not birth rates. 
D)  Per capita consumption is always constant. A

Question 3

The biggest contribution to real U.S. GDP growth in the 1970s was due to growth in

Accepted Answer

A)  total factor productivity. 
B)  the capital stock. 
C)  the labor force. 
D)  both the capital stock and the labor force. 
A)  total factor productivity. 
B)  the capital stock. 
C)  the labor force. 
D)  both the capital stock and the labor force. D

Question 4

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. 
A)  French Revolution. 
B)  American Revolution. 
C)  Industrial Revolution. 
D)  Bio-technology Revolution.

Question 5

In the steady state of Solow's exogenous growth model,an increase in the savings rate

Accepted Answer

A)  increases output per worker and increases capital per worker. 
B)  increases output per worker and decreases capital per worker. 
C)  decreases output per worker and increases capital per worker. 
D)  decreases output per worker and decreases capital per worker. 
A)  increases output per worker and increases capital per worker. 
B)  increases output per worker and decreases capital per worker. 
C)  decreases output per worker and increases capital per worker. 
D)  decreases output per worker and decreases capital per worker.

Question 6

In the Malthusian model,the population growth rate is

Accepted Answer

A)  exogenous. 
B)  positively related to consumption per worker. 
C)  negatively related to consumption per worker. 
D)  assumed to be constant. 
A)  exogenous. 
B)  positively related to consumption per worker. 
C)  negatively related to consumption per worker. 
D)  assumed to be constant.

Question 7

In the Malthusian model,improvements in health care lead to

Accepted Answer

A)  higher population and higher per-capita production. 
B)  higher population and lower per-capita production. 
C)  lower population and higher per-capita production. 
D)  lower population and lower per-capita production. 
A)  higher population and higher per-capita production. 
B)  higher population and lower per-capita production. 
C)  lower population and higher per-capita production. 
D)  lower population and lower per-capita production.

Question 8

The idea that an improvement in technology causes an increase in population but causes no increase in the average standard of living is attributed to

Accepted Answer

A)  Adam Smith. 
B)  Thomas Malthus. 
C)  Robert Solow. 
D)  Milton Friedman. 
A)  Adam Smith. 
B)  Thomas Malthus. 
C)  Robert Solow. 
D)  Milton Friedman.

Question 9

If an epidemic hits a Malthusian economy,the long-term consequence is

Accepted Answer

A)  an increase in the standard of living. 
B)  a reduction in the standard of living. 
C)  no change in the standard of living. 
D)  dependent on the population growth rate. 
A)  an increase in the standard of living. 
B)  a reduction in the standard of living. 
C)  no change in the standard of living. 
D)  dependent on the population growth rate.

Question 10

The Solow model emphasizes the role of which of the following factors of production?

Accepted Answer

A)  land 
B)  labor 
C)  capital 
D)  natural resources 
A)  land 
B)  labor 
C)  capital 
D)  natural resources

Question 11

On average,for the last 100 years or more,real GDP per capita in the United States has increased by

Accepted Answer

A)  0.5% per year. 
B)  1% per year. 
C)  2% per year. 
D)  4% per year. 
A)  0.5% per year. 
B)  1% per year. 
C)  2% per year. 
D)  4% per year.

Question 12

In the steady state of the Solow growth model

Accepted Answer

A)  consumption equals depreciation. 
B)  per capita variables grow at the rate of population growth. 
C)  aggregate consumption grows at a constant rate. 
D)  aggregate output is constant. 
A)  consumption equals depreciation. 
B)  per capita variables grow at the rate of population growth. 
C)  aggregate consumption grows at a constant rate. 
D)  aggregate output is constant.

Question 13

In more modern times as opposed to the times of Malthus,higher standards of living appear to

Accepted Answer

A)  decrease death rates and increase birth rates. 
B)  decrease death rates and also decrease birth rates. 
C)  decrease death rates and have no effect on birth rates. 
D)  have had effects on neither death rates nor birth rates. 
A)  decrease death rates and increase birth rates. 
B)  decrease death rates and also decrease birth rates. 
C)  decrease death rates and have no effect on birth rates. 
D)  have had effects on neither death rates nor birth rates.

Question 14

In Solow's exogenous growth model,the economy reaches a stable steady state because

Accepted Answer

A)  the marginal return of capital is decreasing. 
B)  capital is growing at a constant rate. 
C)  the substitution effect is stronger than the income effect. 
D)  conditional convergence holds. 
A)  the marginal return of capital is decreasing. 
B)  capital is growing at a constant rate. 
C)  the substitution effect is stronger than the income effect. 
D)  conditional convergence holds.

Question 15

In the Malthusian model of economic growth,an increase in the quantity of land

Accepted Answer

A)  increases steady state per capita consumption, and increases the steady state population. 
B)  has no effect on steady state per capita consumption or on steady state population. 
C)  has no effect on steady state per capita consumption, and increases the steady state population. 
D)  increases per capita consumption, and reduces the steady state population. 
A)  increases steady state per capita consumption, and increases the steady state population. 
B)  has no effect on steady state per capita consumption or on steady state population. 
C)  has no effect on steady state per capita consumption, and increases the steady state population. 
D)  increases per capita consumption, and reduces the steady state population.

Question 16

The slope of the output per worker function is equal to the

Accepted Answer

A)  marginal product of capital. 
B)  marginal product of labor. 
C)  savings rate. 
D)  growth rate of the population. 
A)  marginal product of capital. 
B)  marginal product of labor. 
C)  savings rate. 
D)  growth rate of the population.

Question 17

There is evidence that income per worker is converging in

Accepted Answer

A)  the richest countries and the poorest countries. 
B)  the richest countries, but not the poorest countries. 
C)  the poorest countries, but not the richest countries. 
D)  neither the richest nor the poorest countries. 
A)  the richest countries and the poorest countries. 
B)  the richest countries, but not the poorest countries. 
C)  the poorest countries, but not the richest countries. 
D)  neither the richest nor the poorest countries.

Question 18

The per-worker production function relates output per worker

Accepted Answer

A)  to capital per worker. 
B)  to the participation rate. 
C)  to production per worker. 
D)  in different countries. 
A)  to capital per worker. 
B)  to the participation rate. 
C)  to production per worker. 
D)  in different countries.

Question 19

If changes in economic policy could cause the growth rate of real GDP to increase by 1% per year for 100 years,then GDP would be ________ % higher after 100 years than it would have been otherwise.

Accepted Answer

A)  1.3 
B)  2.0 
C)  2.7 
D)  3.8 
A)  1.3 
B)  2.0 
C)  2.7 
D)  3.8

Question 20

It is useful to study the Solow growth model because

Accepted Answer

A)  it provides a useful account of the reasons for population growth. 
B)  it is useful in understanding the sources of economic growth after 1800. 
C)  it has a steady state. 
D)  it can help us understand the reasons for population control. 
A)  it provides a useful account of the reasons for population growth. 
B)  it is useful in understanding the sources of economic growth after 1800. 
C)  it has a steady state. 
D)  it can help us understand the reasons for population control.

The Golden Rule of capital accumulation maximizes the steady-state level of

In the Malthusian model of economic growth

The biggest contribution to real U.S. GDP growth in the 1970s was due to growth in

The Malthusian model performs poorly in explaining economic growth after the

In the steady state of Solow's exogenous growth model,an increase in the savings rate

In the Malthusian model,the population growth rate is

In the Malthusian model,improvements in health care lead to

The idea that an improvement in technology causes an increase in population but causes no increase in the average standard of living is attributed to

If an epidemic hits a Malthusian economy,the long-term consequence is

The Solow model emphasizes the role of which of the following factors of production?

On average,for the last 100 years or more,real GDP per capita in the United States has increased by

In the steady state of the Solow growth model

In more modern times as opposed to the times of Malthus,higher standards of living appear to

In Solow's exogenous growth model,the economy reaches a stable steady state because

In the Malthusian model of economic growth,an increase in the quantity of land

The slope of the output per worker function is equal to the

There is evidence that income per worker is converging in

The per-worker production function relates output per worker

If changes in economic policy could cause the growth rate of real GDP to increase by 1% per year for 100 years,then GDP would be ________ % higher after 100 years than it would have been otherwise.

It is useful to study the Solow growth model because

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

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking

Inflation, the Phillips Curve, and Central Bank Commitment

Filters

Exam 7: Economic Growth: Malthus and Solow

The Golden Rule of capital accumulation maximizes the steady-state level of

In the Malthusian model of economic growth

The biggest contribution to real U.S. GDP growth in the 1970s was due to growth in

The Malthusian model performs poorly in explaining economic growth after the

In the steady state of Solow's exogenous growth model,an increase in the savings rate

In the Malthusian model,the population growth rate is

In the Malthusian model,improvements in health care lead to

The idea that an improvement in technology causes an increase in population but causes no increase in the average standard of living is attributed to

If an epidemic hits a Malthusian economy,the long-term consequence is

The Solow model emphasizes the role of which of the following factors of production?

On average,for the last 100 years or more,real GDP per capita in the United States has increased by

In the steady state of the Solow growth model

In more modern times as opposed to the times of Malthus,higher standards of living appear to

In Solow's exogenous growth model,the economy reaches a stable steady state because

In the Malthusian model of economic growth,an increase in the quantity of land

The slope of the output per worker function is equal to the

There is evidence that income per worker is converging in

The per-worker production function relates output per worker

If changes in economic policy could cause the growth rate of real GDP to increase by 1% per year for 100 years,then GDP would be ________ % higher after 100 years than it would have been otherwise.

It is useful to study the Solow growth model because

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

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking

Inflation, the Phillips Curve, and Central Bank Commitment

Filters