Question 1

In economics,a nonrival good is one that:

Accepted Answer

A) cannot be consumed by more than one person at a time. 
B) can be consumed by more than one person at a time. 
C) can be consumed by more than one person at a time but is congested. 
D) cannot be consumed by more than two persons at a time. 
E) none of the above 
A) cannot be consumed by more than one person at a time. 
B) can be consumed by more than one person at a time. 
C) can be consumed by more than one person at a time but is congested. 
D) cannot be consumed by more than two persons at a time. 
E) none of the above B

Question 2

For the years 1987-2005,output per person in the private sector grew 2.3 percent;capital intensity grew 0.9 percent;and total factor productivity grew 1.1 percent.What was the growth rate of labor composition?

Accepted Answer

A) 1.2 percent 
B) 2.0 percent 
C) 0.4 percent 
D) 4.3 percent 
E) Not enough information is given. 
A) 1.2 percent 
B) 2.0 percent 
C) 0.4 percent 
D) 4.3 percent 
E) Not enough information is given. C

Question 3

The parameter(s)in the Romer model is(are):

Accepted Answer

A) the initial stock of ideas,the population,the fraction of population in the ideas sector,and the ideas efficiency parameter. 
B) the ideas efficiency parameter. 
C) the fraction of population in the ideas sector and the ideas efficiency parameter. 
D) the initial capital stock and the fraction of population in the ideas sector. 
E) the initial capital stock and the ideas efficiency parameter. 
A) the initial stock of ideas,the population,the fraction of population in the ideas sector,and the ideas efficiency parameter. 
B) the ideas efficiency parameter. 
C) the fraction of population in the ideas sector and the ideas efficiency parameter. 
D) the initial capital stock and the fraction of population in the ideas sector. 
E) the initial capital stock and the ideas efficiency parameter. A

Question 4

The "idea" of the assembly line leads to increasing returns.

Accepted Answer

A) True 
 B)False

Question 5

Consider the Romer model.If the percentage of the population engaged in ideas formation,and ?8?¯ decreases,what are the short- and long-term impacts of this shift?

Accepted Answer

This is the opposite of Figure 6.4;initi

Question 6

In the combined Solow-Romer model,the total output growth rate is greater than in the Romer model because:

Accepted Answer

A) the saving rate is higher. 
B) of population growth. 
C) capital depreciation is zero. 
D) of capital accumulation. 
E) of a greater research share. 
A) the saving rate is higher. 
B) of population growth. 
C) capital depreciation is zero. 
D) of capital accumulation. 
E) of a greater research share.

Question 7

In the Romer model,the inputs to production are

Accepted Answer

A) capital and labor. 
B) capital and ideas. 
C) labor and ideas. 
D) natural resources,labor,and ideas. 
E) labor and total factor productivity. 
A) capital and labor. 
B) capital and ideas. 
C) labor and ideas. 
D) natural resources,labor,and ideas. 
E) labor and total factor productivity.

Question 8

Consider the Cobb-Douglas production function   
.
(a)Write this in growth-rate terms.
(b)Next,define this in terms of per capita growth and identify the contributions of the components of per capita growth.
(c)If the growth rate of capital per worker is 1.3 percent;the labor composition growth rate is 0.4 percent,TFP growth is 1.2 percent;and a = 1/2,what is the growth rate of output per worker? If a = 1/3?

Accepted Answer

(a)In growth terms we have: @#IMG-DLM& .
(b)To cal

Question 9

Suppose the parameters of the Romer model take the following values:  
,  
,  
,and  
)What is the per capita income of this country in the tenth period,  
?

Accepted Answer

A) about 6.13 
B) about 61.3 
C) about 12.0 
D) about 11.9 
E) about 10.9 
A) about 6.13 
B) about 61.3 
C) about 12.0 
D) about 11.9 
E) about 10.9

Question 10

Suppose the parameters of the Romer model take the following values:  
,  
,  
,and  
)What is the per capita income of this country in the first period,  
?

Accepted Answer

A) about 1.19 
B) about 11.9 
C) about 12.0 
D) about 14.3 
E) about 9.9 
A) about 1.19 
B) about 11.9 
C) about 12.0 
D) about 14.3 
E) about 9.9

Question 11

In the Romer model,__________ is the driving force behind sustained __________ economic growth.

Accepted Answer

A) labor;long-term 
B) knowledge;short-term 
C) knowledge;long-term 
D) capital;short-term 
E) capital;long-term 
A) labor;long-term 
B) knowledge;short-term 
C) knowledge;long-term 
D) capital;short-term 
E) capital;long-term

Question 12

For the years 2004-2005,output per person in the private sector grew 2.1 percent;capital intensity grew 0.3 percent;and labor composition grew 0.1 percent.What was the growth rate of total factor productivity?

Accepted Answer

A) 1.8 percent 
B) 2.5 percent 
C) 1.7 percent 
D) 0.4 percent 
E) Not enough information is given. 
A) 1.8 percent 
B) 2.5 percent 
C) 1.7 percent 
D) 0.4 percent 
E) Not enough information is given.

Question 13

Offering inventors prizes is a way of providing an incentive to generate new ideas.

Accepted Answer

A) True 
 B)False

Question 14

In the Romer model,the Mexican economy:

Accepted Answer

A) never generates new ideas. 
B) does not need to generate ideas,as it can use those devised in the United States. 
C) cannot use ideas devised in the United States. 
D) eventually will reach a steady state. 
E) does not have an ideas sector. 
A) never generates new ideas. 
B) does not need to generate ideas,as it can use those devised in the United States. 
C) cannot use ideas devised in the United States. 
D) eventually will reach a steady state. 
E) does not have an ideas sector.

Question 15

Consider the following Romer model of economic growth:

(a)If   
,   
,   
andN¯ = 1,000,what is the growth rate of knowledge in this economy?
(b)What is the growth rate of per-capita output in this economy?
(c)Using the information from 1,what is the level of output in this economy in year 5?

Accepted Answer

(a)From equation 6.7 we have the growth

Question 16

With the production function  
,if we double __________,we have a constant returns production.

Accepted Answer

A) capital 
B) capital,labor,and the stock of ideas 
C) capital and the stock of ideas 
D) capital and labor 
E) labor and the stock of ideas 
A) capital 
B) capital,labor,and the stock of ideas 
C) capital and the stock of ideas 
D) capital and labor 
E) labor and the stock of ideas

Question 17

The production function  
,where  
Is the stock of ideas,  
Is capital,and  
Is labor,assumes:

Accepted Answer

A)    is rivalrous. 
B)    is nonrivalrous. 
C)    is nonrivalrous. 
D)    is rivalrous. 
E)    is fixed. 
A)    is rivalrous. 
B)    is nonrivalrous. 
C)    is nonrivalrous. 
D)    is rivalrous. 
E)    is fixed.

Question 18

New irrigation techniques are examples of idea(s).

Accepted Answer

A) True 
 B)False

Question 19

If there are large fixed costs,due to research and development,perfect competition does not generate new ideas,because:

Accepted Answer

A) firms need to recoup these costs through higher profits. 
B) with monopolistic competition,prices are equal to the marginal cost plus a markup. 
C) with monopolistic competition,prices are equal to the marginal cost minus a markup. 
D) perfectly competitive firms always set prices lower than the marginal cost. 
E) Both a and b are correct. 
A) firms need to recoup these costs through higher profits. 
B) with monopolistic competition,prices are equal to the marginal cost plus a markup. 
C) with monopolistic competition,prices are equal to the marginal cost minus a markup. 
D) perfectly competitive firms always set prices lower than the marginal cost. 
E) Both a and b are correct.

Question 20

With the production function  
,if we double __________,we have an increasing returns production.

Accepted Answer

A) capital 
B) capital and the stock of ideas 
C) capital and labor 
D) capital,labor,and the stock of ideas 
E) labor and the stock of ideas 
A) capital 
B) capital and the stock of ideas 
C) capital and labor 
D) capital,labor,and the stock of ideas 
E) labor and the stock of ideas

In economics,a nonrival good is one that:

For the years 1987-2005,output per person in the private sector grew 2.3 percent;capital intensity grew 0.9 percent;and total factor productivity grew 1.1 percent.What was the growth rate of labor composition?

The parameter(s)in the Romer model is(are):

The "idea" of the assembly line leads to increasing returns.

Consider the Romer model.If the percentage of the population engaged in ideas formation,and ?8?¯ decreases,what are the short- and long-term impacts of this shift?

In the combined Solow-Romer model,the total output growth rate is greater than in the Romer model because:

In the Romer model,the inputs to production are

Suppose the parameters of the Romer model take the following values: , , ,and )What is the per capita income of this country in the tenth period, ?

Suppose the parameters of the Romer model take the following values: , , ,and )What is the per capita income of this country in the first period, ?

In the Romer model, is the driving force behind sustained economic growth.

For the years 2004-2005,output per person in the private sector grew 2.1 percent;capital intensity grew 0.3 percent;and labor composition grew 0.1 percent.What was the growth rate of total factor productivity?

Offering inventors prizes is a way of providing an incentive to generate new ideas.

In the Romer model,the Mexican economy:

Consider the following Romer model of economic growth: (a)If , , andN¯ = 1,000,what is the growth rate of knowledge in this economy? (b)What is the growth rate of per-capita output in this economy? (c)Using the information from 1,what is the level of output in this economy in year 5?

With the production function ,if we double __________,we have a constant returns production.

The production function ,where Is the stock of ideas, Is capital,and Is labor,assumes:

New irrigation techniques are examples of idea(s).

If there are large fixed costs,due to research and development,perfect competition does not generate new ideas,because:

With the production function ,if we double __________,we have an increasing returns production.

Introduction to Macroeconomics

Measuring the Macroeconomy

An Overview of Long- Run Economic Growth

A Model of Production

The Solow Growth Model

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 6: Growth and Ideas

In economics,a nonrival good is one that:

For the years 1987-2005,output per person in the private sector grew 2.3 percent;capital intensity grew 0.9 percent;and total factor productivity grew 1.1 percent.What was the growth rate of labor composition?

The parameter(s)in the Romer model is(are):

The "idea" of the assembly line leads to increasing returns.

Consider the Romer model.If the percentage of the population engaged in ideas formation,and ?8?¯ decreases,what are the short- and long-term impacts of this shift?

In the combined Solow-Romer model,the total output growth rate is greater than in the Romer model because:

In the Romer model,the inputs to production are

Suppose the parameters of the Romer model take the following values: , , ,and )What is the per capita income of this country in the tenth period, ?

Suppose the parameters of the Romer model take the following values: , , ,and )What is the per capita income of this country in the first period, ?

In the Romer model,__________ is the driving force behind sustained __________ economic growth.

For the years 2004-2005,output per person in the private sector grew 2.1 percent;capital intensity grew 0.3 percent;and labor composition grew 0.1 percent.What was the growth rate of total factor productivity?

Offering inventors prizes is a way of providing an incentive to generate new ideas.

In the Romer model,the Mexican economy:

Consider the following Romer model of economic growth: (a)If , , andN¯ = 1,000,what is the growth rate of knowledge in this economy? (b)What is the growth rate of per-capita output in this economy? (c)Using the information from 1,what is the level of output in this economy in year 5?

With the production function ,if we double __________,we have a constant returns production.

The production function ,where Is the stock of ideas, Is capital,and Is labor,assumes:

New irrigation techniques are examples of idea(s).

If there are large fixed costs,due to research and development,perfect competition does not generate new ideas,because:

With the production function ,if we double __________,we have an increasing returns production.

Introduction to Macroeconomics

Measuring the Macroeconomy

An Overview of Long- Run Economic Growth

A Model of Production

The Solow Growth Model

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 the Romer model, is the driving force behind sustained economic growth.