Question 1

Which of the following production functions exhibits constant returns to scale?

Accepted Answer

A)    
B)    
C)    
D)    
E) all of the above 
A)    
B)    
C)    
D)    
E) all of the above

Question 2

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

Question 3

In the equation  
,the "bars" over the A and K mean that these variables are:

Accepted Answer

A) parameters that are fixed or exogenous. 
B) variables that are fixed or exogenous. 
C) parameters that are endogenous. 
D) variables that are endogenous. 
E) a and b are correct. 
A) parameters that are fixed or exogenous. 
B) variables that are fixed or exogenous. 
C) parameters that are endogenous. 
D) variables that are endogenous. 
E) a and b are correct.

Question 4

If the production function is   
,then in per worker terms,it can be written as   
.

Accepted Answer

A) True 
 B)False

Question 5

In the Cobb-Douglas production function  
,defining y = Y/L as output per person and k = K/L as capital per person,the per person production function is:

Accepted Answer

A)    . 
B)    . 
C)    . 
D)    . 
E) none of the above 
A)    . 
B)    . 
C)    . 
D)    . 
E) none of the above

Question 6

As an economist working at the International Monetary Fund,you are given the following data for Burundi: predicted per capita GDP,relative to the United States,as given by  
,is 0.19,and total factor productivity is 0.083.What is the observed per capita GDP,relative to the United States?

Accepted Answer

A) 2.28 
B) 0.016 
C) 0.87 
D) 0.44 
E) 0.62 
A) 2.28 
B) 0.016 
C) 0.87 
D) 0.44 
E) 0.62

Question 7

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

Accepted Answer

A) the labor stock 
B) the share of capital in GDP 
C) the share of labor in GDP 
D) the stock of capital 
E) all of the above 
A) the labor stock 
B) the share of capital in GDP 
C) the share of labor in GDP 
D) the stock of capital 
E) all of the above

Question 8

The solution to the firm's maximization problem is:

Accepted Answer

A) how much capital and labor to hire given the rental rate of capital and labor's wage rate. 
B) how much capital and labor to hire given the rental rate of capital only. 
C) how much capital to hire given the rental rate of capital. 
D) how much capital and labor to hire regardless of the rental rate of capital and labor's wage rate. 
E) how much labor to hire given labor's wage rate. 
A) how much capital and labor to hire given the rental rate of capital and labor's wage rate. 
B) how much capital and labor to hire given the rental rate of capital only. 
C) how much capital to hire given the rental rate of capital. 
D) how much capital and labor to hire regardless of the rental rate of capital and labor's wage rate. 
E) how much labor to hire given labor's wage rate.

Question 9

The following equation is an example of __________:  
)

Accepted Answer

A) a growth model 
B) a utility function 
C) a consumption function 
D) the production possibilities frontier 
E) a production function 
A) a growth model 
B) a utility function 
C) a consumption function 
D) the production possibilities frontier 
E) a production function

Question 10

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

Accepted Answer

A) w*L* + r*K*  Y*. 
D) (w*L*/r*K*)= Y*. 
E) (w*L*/Y*)(r*K*/Y*)= 1. 
A) w*L* + r*K*  Y*. 
D) (w*L*/r*K*)= Y*. 
E) (w*L*/Y*)(r*K*/Y*)= 1.

Question 11

In the equation  
 
Represents:

Accepted Answer

A) total factor productivity. 
B) physical capital. 
C) natural resources. 
D) the capital = labor ratio. 
E) the real interest rate. 
A) total factor productivity. 
B) physical capital. 
C) natural resources. 
D) the capital = labor ratio. 
E) the real interest rate.

Question 12

The equation MPK = r* yields:

Accepted Answer

A) the amount of capital in an economy. 
B) the optimal amount of capital,K*,a firm fires. 
C) the optimal amount of capital,K*,a firm hires. 
D) the quantity of capital a firm wants to hire at any rental rate of capital. 
E) none of the above 
A) the amount of capital in an economy. 
B) the optimal amount of capital,K*,a firm fires. 
C) the optimal amount of capital,K*,a firm hires. 
D) the quantity of capital a firm wants to hire at any rental rate of capital. 
E) none of the above

Question 13

Which of the following are essential for economic success?

Accepted Answer

A) property rights 
B) the rule of law 
C) contract enforcement 
D) the separation of powers 
E) all of the above 
A) property rights 
B) the rule of law 
C) contract enforcement 
D) the separation of powers 
E) all of the above

Which of the following production functions exhibits constant returns to scale?

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

In the equation ,the "bars" over the A and K mean that these variables are:

If the production function is ,then in per worker terms,it can be written as .

In the Cobb-Douglas production function ,defining y = Y/L as output per person and k = K/L as capital per person,the per person production function is:

As an economist working at the International Monetary Fund,you are given the following data for Burundi: predicted per capita GDP,relative to the United States,as given by ,is 0.19,and total factor productivity is 0.083.What is the observed per capita GDP,relative to the United States?

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

The solution to the firm's maximization problem is:

The following equation is an example of __________: )

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

In the equation Represents:

The equation MPK = r* yields:

Which of the following are essential for economic success?

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

Which of the following production functions exhibits constant returns to scale?

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

In the equation ,the "bars" over the A and K mean that these variables are:

If the production function is ,then in per worker terms,it can be written as .

In the Cobb-Douglas production function ,defining y = Y/L as output per person and k = K/L as capital per person,the per person production function is:

As an economist working at the International Monetary Fund,you are given the following data for Burundi: predicted per capita GDP,relative to the United States,as given by ,is 0.19,and total factor productivity is 0.083.What is the observed per capita GDP,relative to the United States?

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

The solution to the firm's maximization problem is:

The following equation is an example of __________: )

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

In the equation Represents:

The equation MPK = r* yields:

Which of the following are essential for economic success?

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* = 2/3,respectively.One implication of this result is: