Question 1

Differences in output across economies with the same per capita capital stock can be explained by

Accepted Answer

A) differences in labor. 
B) differences in total factor productivity. 
C) similarities in total factor productivity. 
D) differences in physical capital. 
E) similarities in physical capital. 
A) differences in labor. 
B) differences in total factor productivity. 
C) similarities in total factor productivity. 
D) differences in physical capital. 
E) similarities in physical capital.

Question 2

-In Figure 4.4,MPL represents the __________,  
Represents the __________,and the intersection of the two yields __________.

Accepted Answer

A) labor supply;labor demand;the equilibrium wage 
B) labor demand;labor supply;the equilibrium wage 
C) labor supply;labor demand;the equilibrium rental rate of capital 
D) labor demand;labor supply;the amount of capital hired 
E) None of the above is correct. 
A) labor supply;labor demand;the equilibrium wage 
B) labor demand;labor supply;the equilibrium wage 
C) labor supply;labor demand;the equilibrium rental rate of capital 
D) labor demand;labor supply;the amount of capital hired 
E) None of the above is correct.

Question 3

In the Cobb-Douglas production function  
,if a = 1/4,then:

Accepted Answer

A) capital's share of GDP is one-fourth. 
B) labor's share of GDP is three-fourths. 
C) capital's share of GDP is three-fourths. 
D) labor's share of income is one-fourth. 
E) Both a and b are correct. 
A) capital's share of GDP is one-fourth. 
B) labor's share of GDP is three-fourths. 
C) capital's share of GDP is three-fourths. 
D) labor's share of income is one-fourth. 
E) Both a and b are correct.

Question 4

What are the three sources of total factor productivity discussed in the text? Can you name other possible sources? Explain your answer.

Accepted Answer

Human capital: Simply defined,this is sk

Question 5

If the U.S.total factor productivity is 1.00 and China's is 0.45,then the U.S.capital per worker is 65 percent more productive than China's.

Accepted Answer

A) True 
 B)False

Question 6

Exogenous variables are predetermined by the model builder.

Accepted Answer

A) True 
 B)False

Question 7

In the equation  
,the "bar" over the A means that it is:

Accepted Answer

A) a parameter that is fixed or exogenous. 
B) a variable that is fixed or exogenous. 
C) a parameter that is variable or exogenous. 
D) a variable that is endogenous. 
E) a and b are correct. 
A) a parameter that is fixed or exogenous. 
B) a variable that is fixed or exogenous. 
C) a parameter that is variable or exogenous. 
D) a variable that is endogenous. 
E) a and b are correct.

Question 8

Which of the following does not explain differences in total factor productivity?

Accepted Answer

A) institutions 
B) the labor stock 
C) human capital 
D) natural resources 
E) technology 
A) institutions 
B) the labor stock 
C) human capital 
D) natural resources 
E) technology

Question 9

The production function of the form   
exhibits constant returns to scale.

Accepted Answer

A) True 
 B)False

Question 10

The production function  
Describes:

Accepted Answer

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

Question 11

If MPK > r,the firm:

Accepted Answer

A) should hire more labor. 
B) should hire more capital until MPK = 0. 
C) should get rid of some capital until MPK = r. 
D) should hire more capital until MPK = r. 
E) has the optimal amount of capital. 
A) should hire more labor. 
B) should hire more capital until MPK = 0. 
C) should get rid of some capital until MPK = r. 
D) should hire more capital until MPK = r. 
E) has the optimal amount of capital.

Question 12

The text uses this analogy of the economic model: "As the model-builder,__________ what actions the robots can take and __________ the raw materials that fill the robot world.After constructing the world,you switch on the power source and __________."

Accepted Answer

A) you determine;you provide;you know what happens 
B) reality determines;reality provides;watch what happens 
C) reality determines;reality provides;you know what happens 
D) you determine;you provide;watch what happens 
E) None of the above is correct. 
A) you determine;you provide;you know what happens 
B) reality determines;reality provides;watch what happens 
C) reality determines;reality provides;you know what happens 
D) you determine;you provide;watch what happens 
E) None of the above is correct.

Question 13

If the production function is given by   
,then labor's share of GDP is one-third.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following are examples of technology?

Accepted Answer

A) just-in-time inventory 
B) computer chips 
C) improved irrigation 
D) the Internet 
E) all of the above 
A) just-in-time inventory 
B) computer chips 
C) improved irrigation 
D) the Internet 
E) all of the above

Question 15

If MPL < w,the firm:

Accepted Answer

A) has the optimal amount of labor. 
B) should fire some labor until MPL = w. 
C) should fire some labor until MPL = 0. 
D) should hire more capital until MPK = 0. 
E) should hire more capital until MPL = w. 
A) has the optimal amount of labor. 
B) should fire some labor until MPL = w. 
C) should fire some labor until MPL = 0. 
D) should hire more capital until MPK = 0. 
E) should hire more capital until MPL = w.

Question 16

The production function of the form   
exhibits constant returns to scale.

Accepted Answer

A) True 
 B)False

Question 17

A production function exhibits decreasing returns to scale if,

Accepted Answer

A) when you double each input,you double the output. 
B) when you double each input,you more than double the output. 
C) when you double each input,you less than double the output. 
D) when you double one input,you double the output. 
E) when you hold inputs constant,you double the output. 
A) when you double each input,you double the output. 
B) when you double each input,you more than double the output. 
C) when you double each input,you less than double the output. 
D) when you double one input,you double the output. 
E) when you hold inputs constant,you double the output.

Question 18

One of the key characteristics of the Cobb-Douglas production function is

Accepted Answer

A) increasing returns to scale. 
B) decreasing returns to scale. 
C) constant returns to scale. 
D) that it compacts all inputs into a single equation. 
E) that it is an exact replication of a firm's production function. 
A) increasing returns to scale. 
B) decreasing returns to scale. 
C) constant returns to scale. 
D) that it compacts all inputs into a single equation. 
E) that it is an exact replication of a firm's production function.

Question 19

As an economist working at the International Monetary Fund,you are given the following data for Burundi: observed per capita GDP,relative to the United States,is 0.016;predicted per capita GDP,given by  
,is 0.19.What is total factor productivity?

Accepted Answer

A) 0.003 
B) 12.04 
C) 0.083 
D) 0.44 
E) 0.25 
A) 0.003 
B) 12.04 
C) 0.083 
D) 0.44 
E) 0.25

Question 20

-Consider the two production functions in Figure 4.6,representing two countries.Which of the following is not true?
i.At points a and b,each country has the same per capita capital stock but different factor productivity.
ii.Points a and c represent different countries but with the same factor productivity.
iii.Points b and d represent the same country but with different stock of per capita capital.

Accepted Answer

A) ii only 
B) i only 
C) iii only 
D) i and ii 
E) i and iii 
A) ii only 
B) i only 
C) iii only 
D) i and ii 
E) i and iii

Differences in output across economies with the same per capita capital stock can be explained by

-In Figure 4.4,MPL represents the , Represents the ,and the intersection of the two yields __.

In the Cobb-Douglas production function ,if a = 1/4,then:

What are the three sources of total factor productivity discussed in the text? Can you name other possible sources? Explain your answer.

If the U.S.total factor productivity is 1.00 and China's is 0.45,then the U.S.capital per worker is 65 percent more productive than China's.

Exogenous variables are predetermined by the model builder.

In the equation ,the "bar" over the A means that it is:

Which of the following does not explain differences in total factor productivity?

The production function of the form exhibits constant returns to scale.

The production function Describes:

If MPK > r,the firm:

The text uses this analogy of the economic model: "As the model-builder, what actions the robots can take and the raw materials that fill the robot world.After constructing the world,you switch on the power source and __."

If the production function is given by ,then labor's share of GDP is one-third.

Which of the following are examples of technology?

If MPL < w,the firm:

The production function of the form exhibits constant returns to scale.

A production function exhibits decreasing returns to scale if,

One of the key characteristics of the Cobb-Douglas production function is

As an economist working at the International Monetary Fund,you are given the following data for Burundi: observed per capita GDP,relative to the United States,is 0.016;predicted per capita GDP,given by ,is 0.19.What is total factor productivity?

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

Differences in output across economies with the same per capita capital stock can be explained by

-In Figure 4.4,MPL represents the __________, Represents the __________,and the intersection of the two yields __________.

In the Cobb-Douglas production function ,if a = 1/4,then:

What are the three sources of total factor productivity discussed in the text? Can you name other possible sources? Explain your answer.

If the U.S.total factor productivity is 1.00 and China's is 0.45,then the U.S.capital per worker is 65 percent more productive than China's.

Exogenous variables are predetermined by the model builder.

In the equation ,the "bar" over the A means that it is:

Which of the following does not explain differences in total factor productivity?

The production function of the form exhibits constant returns to scale.

The production function Describes:

If MPK > r,the firm:

The text uses this analogy of the economic model: "As the model-builder,__________ what actions the robots can take and __________ the raw materials that fill the robot world.After constructing the world,you switch on the power source and __________."

If the production function is given by ,then labor's share of GDP is one-third.

Which of the following are examples of technology?

If MPL < w,the firm:

The production function of the form exhibits constant returns to scale.

A production function exhibits decreasing returns to scale if,

One of the key characteristics of the Cobb-Douglas production function is

As an economist working at the International Monetary Fund,you are given the following data for Burundi: observed per capita GDP,relative to the United States,is 0.016;predicted per capita GDP,given by ,is 0.19.What is total factor productivity?

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

-In Figure 4.4,MPL represents the , Represents the ,and the intersection of the two yields __.

The text uses this analogy of the economic model: "As the model-builder, what actions the robots can take and the raw materials that fill the robot world.After constructing the world,you switch on the power source and __."