Question 1

A production function of the form   
is called the Cobb-Douglas production function.

Accepted Answer

A) True 
 B)False

Question 2

Consider two countries,A and B.If each country produces using identical production functions,but   
and   
,the total factor productivity of country A equals that of B.

Accepted Answer

A) True 
 B)False

Question 3

Suppose the payments to capital and labor are (w*L*)/Y* = 2/3 and (r*L*)/Y* = 1/3,respectively.One implication of this result is that __________ and profits are __________.

Accepted Answer

A) w*L* + r*K* = Y*;positive 
B) w*L* + r*K* = Y*;equal to zero 
C) w*L* + r*K* = Y*;negative 
D) (w*L* - r*K*)= Y*;equal to zero 
E) (w*L*/Y*)(r*K*/Y*)= 0;negative 
A) w*L* + r*K* = Y*;positive 
B) w*L* + r*K* = Y*;equal to zero 
C) w*L* + r*K* = Y*;negative 
D) (w*L* - r*K*)= Y*;equal to zero 
E) (w*L*/Y*)(r*K*/Y*)= 0;negative

Question 4

Suppose the payments to capital and labor are (w*L*)/Y* = 2/3 and (r*L*)/Y* = 1/3,respectively.One implication of this result is:

Accepted Answer

A) (w*L*/r*K*)= Y*. 
B) w*L* - r*K* = Y*. 
C) w*L* $\times$ r*K* = Y*. 
D) w*L* + r*K* = Y*. 
E) (w*L*/Y*)(r*K*/Y*)= 0. 
A) (w*L*/r*K*)= Y*. 
B) w*L* - r*K* = Y*. 
C) w*L* $\times$ r*K* = Y*. 
D) w*L* + r*K* = Y*. 
E) (w*L*/Y*)(r*K*/Y*)= 0.

Question 5

A model is a __________ representation of __________ world that we use to study economic phenomena.

Accepted Answer

A) false;a toy 
B) mathematical;a toy 
C) accurate;the real 
D) mathematical;the real 
E) accurate;a toy 
A) false;a toy 
B) mathematical;a toy 
C) accurate;the real 
D) mathematical;the real 
E) accurate;a toy

Question 6

The marginal product of labor is measured in:

Accepted Answer

A) dollars. 
B) units of output. 
C) units of output per dollar. 
D) units of capital per dollar. 
E) units of labor per dollar. 
A) dollars. 
B) units of output. 
C) units of output per dollar. 
D) units of capital per dollar. 
E) units of labor per dollar.

Question 7

In the United States,the average number of years of education for adults over the age of 25 is about:

Accepted Answer

A) 13 years. 
B) 9 years. 
C) 17 years. 
D) 12 years. 
E) 14 years. 
A) 13 years. 
B) 9 years. 
C) 17 years. 
D) 12 years. 
E) 14 years.

Question 8

The production function  
Describes:

Accepted Answer

A) how any amount of labor and a particular amount of capital can be combined to generate output. 
B) how particular amounts of capital and labor can be combined to generate output. 
C) how any amount of capital and labor can be combined to generate output. 
D) how any amount of capital and a particular amount of labor can be combined to generate output. 
E) none of the above 
A) how any amount of labor and a particular amount of capital can be combined to generate output. 
B) how particular amounts of capital and labor can be combined to generate output. 
C) how any amount of capital and labor can be combined to generate output. 
D) how any amount of capital and a particular amount of labor can be combined to generate output. 
E) none of the above

Question 9

Which of the following explain differences in total factor productivity?

Accepted Answer

A) institutions 
B) human capital 
C) natural resources 
D) technology 
E) all of the above 
A) institutions 
B) human capital 
C) natural resources 
D) technology 
E) all of the above

Question 10

If the production function is given by   
,the marginal product of capital is (1/3)(Y/K).

Accepted Answer

A) True 
 B)False

Question 11

In the Cobb-Douglas production function  
,labor's share of GDP is _________.

Accepted Answer

A) two-thirds regardless of how much labor there is 
B) two-thirds but can change as more laborers are added 
C) one-third regardless of how much labor there is 
D) always equal to one 
E) Not enough information is given. 
A) two-thirds regardless of how much labor there is 
B) two-thirds but can change as more laborers are added 
C) one-third regardless of how much labor there is 
D) always equal to one 
E) Not enough information is given.

Question 12

If  
And  
,then output is determined by:

Accepted Answer

A) the total amount of labor in an economy. 
B) the total amount of capital in an economy. 
C) the total amount of capital and labor available in an economy. 
D) a percentage of capital and labor in an economy. 
E) Not enough information is given. 
A) the total amount of labor in an economy. 
B) the total amount of capital in an economy. 
C) the total amount of capital and labor available in an economy. 
D) a percentage of capital and labor in an economy. 
E) Not enough information is given.

Question 13

Institutions are one example of factors that influence total factor productivity.

Accepted Answer

A) True 
 B)False

Question 14

In the equation  
,the lack of a "bar" over the L means that it is:

Accepted Answer

A) an exogenous variable. 
B) an endogenous variable. 
C) a parameter. 
D) constant. 
E) equal to one. 
A) an exogenous variable. 
B) an endogenous variable. 
C) a parameter. 
D) constant. 
E) equal to one.

Question 15

-One explanation for the difference between the predicted output per person and the observed per capita GDP in Table 4.1 is:

Accepted Answer

A) differences in the labor supply. 
B) differences in human capital. 
C) differences in per capita capital. 
D) differences in capital's share of GDP. 
E) none of the above 
A) differences in the labor supply. 
B) differences in human capital. 
C) differences in per capita capital. 
D) differences in capital's share of GDP. 
E) none of the above

Question 16

As a measure for total factor productivity,we can use the quantity of __________ in an economy.

Accepted Answer

A) computers 
B) factories 
C) machines 
D) kilowatt hours used 
E) none of the above 
A) computers 
B) factories 
C) machines 
D) kilowatt hours used 
E) none of the above

Question 17

In the production function  
,  
Represents:

Accepted Answer

A) an unknown. 
B) the amount of capital in an economy. 
C) the amount of labor in an economy. 
D) a productivity parameter. 
E) an error term. 
A) an unknown. 
B) the amount of capital in an economy. 
C) the amount of labor in an economy. 
D) a productivity parameter. 
E) an error term.

Question 18

Convert the Cobb-Douglas production   
into per capita terms.Why might we be more concerned about per capita output rather than total output when discussing the welfare impacts of economic growth?

Accepted Answer

We begin by dividing both sides of the e

Question 19

Mathematically,an economic model is __________.

Accepted Answer

A) a fake world 
B) a spreadsheet 
C) an accurate representation of reality 
D) a set of equations 
E) the actual macroeconomy 
A) a fake world 
B) a spreadsheet 
C) an accurate representation of reality 
D) a set of equations 
E) the actual macroeconomy

Question 20

In the poorest countries in the world,the average number of years of education for adults over the age of 25 is about:

Accepted Answer

A) 4 years. 
B) 1 year. 
C) 6 years. 
D) 12 years. 
E) 9 years. 
A) 4 years. 
B) 1 year. 
C) 6 years. 
D) 12 years. 
E) 9 years.

A production function of the form is called the Cobb-Douglas production function.

Consider two countries,A and B.If each country produces using identical production functions,but and ,the total factor productivity of country A equals that of B.

Suppose the payments to capital and labor are (wL)/Y* = 2/3 and (rL)/Y* = 1/3,respectively.One implication of this result is that and profits are .

Suppose the payments to capital and labor are (wL)/Y* = 2/3 and (rL)/Y* = 1/3,respectively.One implication of this result is:

A model is a representation of world that we use to study economic phenomena.

The marginal product of labor is measured in:

In the United States,the average number of years of education for adults over the age of 25 is about:

The production function Describes:

Which of the following explain differences in total factor productivity?

If the production function is given by ,the marginal product of capital is (1/3)(Y/K).

In the Cobb-Douglas production function ,labor's share of GDP is _________.

If And ,then output is determined by:

Institutions are one example of factors that influence total factor productivity.

In the equation ,the lack of a "bar" over the L means that it is:

-One explanation for the difference between the predicted output per person and the observed per capita GDP in Table 4.1 is:

As a measure for total factor productivity,we can use the quantity of __________ in an economy.

In the production function , Represents:

Convert the Cobb-Douglas production into per capita terms.Why might we be more concerned about per capita output rather than total output when discussing the welfare impacts of economic growth?

Mathematically,an economic model is __________.

In the poorest countries in the world,the average number of years of education for adults over the age of 25 is about:

Introduction to Macroeconomics

Measuring the Macroeconomy

An Overview of Long- Run Economic Growth

The Solow Growth Model

Growth and Ideas

The Labor Market,wages,and Unemployment

Inflation

An Introduction to the Short Run

The Great Recession: a First Look

The Is Curve

Monetary Policy and the Phillips Curve

Stabilization Policy and the Asad Framework

The Great Recession and the Short-Run Model

Consumption

Investment

The Government and the Macroeconomy

International Trade

Exchange Rates and International Finance

Parting Thoughts

Filters

Exam 4: A Model of Production

A production function of the form is called the Cobb-Douglas production function.

Consider two countries,A and B.If each country produces using identical production functions,but and ,the total factor productivity of country A equals that of B.

Suppose the payments to capital and labor are (w*L*)/Y* = 2/3 and (r*L*)/Y* = 1/3,respectively.One implication of this result is that __________ and profits are __________.

Suppose the payments to capital and labor are (w*L*)/Y* = 2/3 and (r*L*)/Y* = 1/3,respectively.One implication of this result is:

A model is a __________ representation of __________ world that we use to study economic phenomena.

The marginal product of labor is measured in:

In the United States,the average number of years of education for adults over the age of 25 is about:

The production function Describes:

Which of the following explain differences in total factor productivity?

If the production function is given by ,the marginal product of capital is (1/3)(Y/K).

In the Cobb-Douglas production function ,labor's share of GDP is _________.

If And ,then output is determined by:

Institutions are one example of factors that influence total factor productivity.

In the equation ,the lack of a "bar" over the L means that it is:

-One explanation for the difference between the predicted output per person and the observed per capita GDP in Table 4.1 is:

As a measure for total factor productivity,we can use the quantity of __________ in an economy.

In the production function , Represents:

Convert the Cobb-Douglas production into per capita terms.Why might we be more concerned about per capita output rather than total output when discussing the welfare impacts of economic growth?

Mathematically,an economic model is __________.

In the poorest countries in the world,the average number of years of education for adults over the age of 25 is about:

Introduction to Macroeconomics

Measuring the Macroeconomy

An Overview of Long- Run Economic Growth

The Solow Growth Model

Growth and Ideas

The Labor Market,wages,and Unemployment

Inflation

An Introduction to the Short Run

The Great Recession: a First Look

The Is Curve

Monetary Policy and the Phillips Curve

Stabilization Policy and the Asad Framework

The Great Recession and the Short-Run Model

Consumption

Investment

The Government and the Macroeconomy

International Trade

Exchange Rates and International Finance

Parting Thoughts

Filters

Suppose the payments to capital and labor are (wL)/Y* = 2/3 and (rL)/Y* = 1/3,respectively.One implication of this result is that and profits are .

Suppose the payments to capital and labor are (wL)/Y* = 2/3 and (rL)/Y* = 1/3,respectively.One implication of this result is:

A model is a representation of world that we use to study economic phenomena.