Question 1

Assuming that technological progress increases the efficiency of labor at a constant rate is called:

Accepted Answer

A)  endogenous technological progress. 
B)  the efficiency-wage model of economic growth. 
C)  labor-augmenting technological progress. 
D)  the Golden Rule model of economic growth. 
A)  endogenous technological progress. 
B)  the efficiency-wage model of economic growth. 
C)  labor-augmenting technological progress. 
D)  the Golden Rule model of economic growth.

Question 2

Explain why additional capital generates both positive and negative impacts on steady-state consumption per worker in the Solow growth model with population growth and technological change.

Accepted Answer

Increasing the capital per effective wor

Question 3

Endogenous growth theory rejects the assumption of exogenous:

Accepted Answer

A)  production functions. 
B)  rates of depreciation. 
C)  population growth rates. 
D)  technological change. 
A)  production functions. 
B)  rates of depreciation. 
C)  population growth rates. 
D)  technological change.

Question 4

If the per-worker production function is y = Ak, where A is a positive constant, then the marginal product of capital:

Accepted Answer

A)  increases as k increases. 
B)  is constant as k increases. 
C)  decreases as k increases. 
D)  cannot be measured in this case. 
A)  increases as k increases. 
B)  is constant as k increases. 
C)  decreases as k increases. 
D)  cannot be measured in this case.

Question 5

What is an endogenous growth model? How is technological change determined in the two-sector endogenous model?

Accepted Answer

Endogenous growth theories are those tha

Question 6

Empirical evidence supports the theory that free trade:

Accepted Answer

A)  increases economic growth. 
B)  decreases economic growth. 
C)  increases imports, but decreases exports because of greater global competition. 
D)  increases both imports and exports, but does not contribute to overall economic growth. 
A)  increases economic growth. 
B)  decreases economic growth. 
C)  increases imports, but decreases exports because of greater global competition. 
D)  increases both imports and exports, but does not contribute to overall economic growth.

Question 7

Economic research shows that ______ in explaining international differences in living standards.

Accepted Answer

A)  physical capital is more important than human capital 
B)  human capital is at least as important as physical capital 
C)  human capital is much more important than physical capital 
D)  infrastructure is the most important factor 
A)  physical capital is more important than human capital 
B)  human capital is at least as important as physical capital 
C)  human capital is much more important than physical capital 
D)  infrastructure is the most important factor

Question 8

The analysis in Chapter 9 of the current capital stock in the United States versus the Golden Rule level of capital stock shows that the capital stock in the United States is:

Accepted Answer

A)  well above the Golden Rule level. 
B)  about equal to the Golden Rule level. 
C)  well below the Golden Rule level. 
D)  slightly above the Golden Rule level. 
A)  well above the Golden Rule level. 
B)  about equal to the Golden Rule level. 
C)  well below the Golden Rule level. 
D)  slightly above the Golden Rule level.

Question 9

Prescott interpreted fluctuations in the Solow residual as evidence that:

Accepted Answer

A)  technology shocks are an important source of short-run economic fluctuations. 
B)  the Solow growth model does not converge to a steady-state equilibrium. 
C)  endogenous growth models are better explanations of growth than the Solow model. 
D)  the marginal product of labor fluctuates more than the marginal product of capital. 
A)  technology shocks are an important source of short-run economic fluctuations. 
B)  the Solow growth model does not converge to a steady-state equilibrium. 
C)  endogenous growth models are better explanations of growth than the Solow model. 
D)  the marginal product of labor fluctuates more than the marginal product of capital.

Question 10

If the production function is y = k1/2, the steady-state value of y is:

Accepted Answer

A)  y = ((s + g)/($\delta$ + n))1/2. 
B)  y = (s + g)/($\delta$+ n). 
C)  y = (2/($\delta$+ n + g))1/2. 
D)  y = s/($\delta$ + n + g). 
A)  y = ((s + g)/($\delta$ + n))1/2. 
B)  y = (s + g)/($\delta$+ n). 
C)  y = (2/($\delta$+ n + g))1/2. 
D)  y = s/($\delta$ + n + g).

Question 11

Empirical studies indicate that the rate of social return from positive "standing on others' shoulders" externalities of research ______ the negative "stepping on toes" externalities of research.

Accepted Answer

A)  greatly exceed 
B)  approximately equal 
C)  are substantially less than 
D)  are only slightly less than 
A)  greatly exceed 
B)  approximately equal 
C)  are substantially less than 
D)  are only slightly less than

Question 12

Income per person exceeds $25,000 in many countries, but it is below $1,000 per person in many other countries. Based on the Solow growth model, suggest at least four possible explanations for this gap in living standards.

Accepted Answer

Possible explanations include: richer co

Question 13

Suggest three explanations for the productivity slowdown experienced since 1972.

Accepted Answer

Possible explanations include:

Question 14

If productivity growth in the United States had remained at its level before the recent productivity slowdown, real income today would be more than ______ percent higher.

Accepted Answer

A)  10 
B)  20 
C)  30 
D)  40 
A)  10 
B)  20 
C)  30 
D)  40

Question 15

The Solow model predicts that two economies will converge if the economies start with the same:

Accepted Answer

A)  capital stocks. 
B)  populations. 
C)  steady states. 
D)  production functions. 
A)  capital stocks. 
B)  populations. 
C)  steady states. 
D)  production functions.

Question 16

What is the difference between convergence and conditional convergence with respect to predictions of the Solow growth model? Explain.

Accepted Answer

Convergence applies to economies with th

Question 17

What is the 'efficiency of labor'? How does technological progress effect efficiency of labor?

Accepted Answer

The efficiency of labor describes how ea

Question 18

Changes that can increase measured total factor productivity include:

Accepted Answer

A)  increased expenditures on education. 
B)  regulations requiring reductions in pollution. 
C)  regulations requiring increases in worker safety. 
D)  increases in the capital-labor ratio. 
A)  increased expenditures on education. 
B)  regulations requiring reductions in pollution. 
C)  regulations requiring increases in worker safety. 
D)  increases in the capital-labor ratio.

Question 19

One explanation for greater economic development in moderate versus tropical climates is that institutions established by colonial settlers in moderate climates ______, while institutions established by colonists in tropical climates ______.

Accepted Answer

A)  were based on English common law; were based on the Napoleonic Code 
B)  were based on the Napoleonic Code; were based on English common law 
C)  protected property rights; were extractive and authoritarian 
D)  were extractive and authoritarian; protected property rights 
A)  were based on English common law; were based on the Napoleonic Code 
B)  were based on the Napoleonic Code; were based on English common law 
C)  protected property rights; were extractive and authoritarian 
D)  were extractive and authoritarian; protected property rights

Question 20

Public policies in the United States designed to stimulate technological progress do not include:

Accepted Answer

A)  tax breaks to encourage homeownership. 
B)  the temporary monopoly granted by the patent system. 
C)  tax breaks for research and development. 
D)  subsidies given by the National Science Foundation. 
A)  tax breaks to encourage homeownership. 
B)  the temporary monopoly granted by the patent system. 
C)  tax breaks for research and development. 
D)  subsidies given by the National Science Foundation.

Assuming that technological progress increases the efficiency of labor at a constant rate is called:

Explain why additional capital generates both positive and negative impacts on steady-state consumption per worker in the Solow growth model with population growth and technological change.

Endogenous growth theory rejects the assumption of exogenous:

If the per-worker production function is y = Ak, where A is a positive constant, then the marginal product of capital:

What is an endogenous growth model? How is technological change determined in the two-sector endogenous model?

Empirical evidence supports the theory that free trade:

Economic research shows that ______ in explaining international differences in living standards.

The analysis in Chapter 9 of the current capital stock in the United States versus the Golden Rule level of capital stock shows that the capital stock in the United States is:

Prescott interpreted fluctuations in the Solow residual as evidence that:

If the production function is y = k^1/2, the steady-state value of y is:

Empirical studies indicate that the rate of social return from positive "standing on others' shoulders" externalities of research ______ the negative "stepping on toes" externalities of research.

Income per person exceeds $25,000 in many countries, but it is below $1,000 per person in many other countries. Based on the Solow growth model, suggest at least four possible explanations for this gap in living standards.

Suggest three explanations for the productivity slowdown experienced since 1972.

If productivity growth in the United States had remained at its level before the recent productivity slowdown, real income today would be more than ______ percent higher.

The Solow model predicts that two economies will converge if the economies start with the same:

What is the difference between convergence and conditional convergence with respect to predictions of the Solow growth model? Explain.

What is the 'efficiency of labor'? How does technological progress effect efficiency of labor?

Changes that can increase measured total factor productivity include:

One explanation for greater economic development in moderate versus tropical climates is that institutions established by colonial settlers in moderate climates , while institutions established by colonists in tropical climates .

Public policies in the United States designed to stimulate technological progress do not include:

The Science of Macroeconomics

The Data of Macroeconomics

National Income: Where It Comes From and Where It Goes

The Monetary System: What It Is and How It Works

Inflation: Its Causes, Effects, and Social Costs

The Open Economy

Unemployment and the Labor Market

Economic Growth I: Capital Accumulation and Population Growth

Introduction to Economic Fluctuations

Aggregate Demand I: Building the Is-Lm Model

Aggregate Demand Ii: Applying the Is-Lm Model

The Open Economy Revisited: the Mundell-Fleming Model and the Exchange-Rate Regime

Aggregate Supply and the Short-Run Tradeoff Between Inflation and Unemployment

A Dynamic Model of Economic Fluctuations

Understanding Consumer Behavior

The Theory of Investment

Alternative Perspectives on Stabilization Policy

Government Debt and Budget Deficits

The Financial System: Opportunities and Dangers

Filters

Exam 9: Economic Growth II: Technology, Empirics, and Policy

Assuming that technological progress increases the efficiency of labor at a constant rate is called:

Explain why additional capital generates both positive and negative impacts on steady-state consumption per worker in the Solow growth model with population growth and technological change.

Endogenous growth theory rejects the assumption of exogenous:

If the per-worker production function is y = Ak, where A is a positive constant, then the marginal product of capital:

What is an endogenous growth model? How is technological change determined in the two-sector endogenous model?

Empirical evidence supports the theory that free trade:

Economic research shows that ______ in explaining international differences in living standards.

The analysis in Chapter 9 of the current capital stock in the United States versus the Golden Rule level of capital stock shows that the capital stock in the United States is:

Prescott interpreted fluctuations in the Solow residual as evidence that:

If the production function is y = k1/2, the steady-state value of y is:

Empirical studies indicate that the rate of social return from positive "standing on others' shoulders" externalities of research ______ the negative "stepping on toes" externalities of research.

Income per person exceeds $25,000 in many countries, but it is below $1,000 per person in many other countries. Based on the Solow growth model, suggest at least four possible explanations for this gap in living standards.

Suggest three explanations for the productivity slowdown experienced since 1972.

If productivity growth in the United States had remained at its level before the recent productivity slowdown, real income today would be more than ______ percent higher.

The Solow model predicts that two economies will converge if the economies start with the same:

What is the difference between convergence and conditional convergence with respect to predictions of the Solow growth model? Explain.

What is the 'efficiency of labor'? How does technological progress effect efficiency of labor?

Changes that can increase measured total factor productivity include:

One explanation for greater economic development in moderate versus tropical climates is that institutions established by colonial settlers in moderate climates ______, while institutions established by colonists in tropical climates ______.

Public policies in the United States designed to stimulate technological progress do not include:

The Science of Macroeconomics

The Data of Macroeconomics

National Income: Where It Comes From and Where It Goes

The Monetary System: What It Is and How It Works

Inflation: Its Causes, Effects, and Social Costs

The Open Economy

Unemployment and the Labor Market

Economic Growth I: Capital Accumulation and Population Growth

Introduction to Economic Fluctuations

Aggregate Demand I: Building the Is-Lm Model

Aggregate Demand Ii: Applying the Is-Lm Model

The Open Economy Revisited: the Mundell-Fleming Model and the Exchange-Rate Regime

Aggregate Supply and the Short-Run Tradeoff Between Inflation and Unemployment

A Dynamic Model of Economic Fluctuations

Understanding Consumer Behavior

The Theory of Investment

Alternative Perspectives on Stabilization Policy

Government Debt and Budget Deficits

The Financial System: Opportunities and Dangers

Filters

If the production function is y = k^1/2, the steady-state value of y is:

One explanation for greater economic development in moderate versus tropical climates is that institutions established by colonial settlers in moderate climates , while institutions established by colonists in tropical climates .