Question 1

Convergence of output per capita across countries has come from:

Accepted Answer

A)  a convergence of the accumulation of capital. 
B)  a convergence of depreciation rates. 
C)  higher technological progress from the countries that started behind. 
D)  a convergence of saving rates. 
E)  a convergence of population growth.

Question 2

Given the information above, which of the following represents the amount of investment per effective worker needed to maintain a constant level of capital per effective worker (K/AN)?

Accepted Answer

A)  0.22(K/AN). 
B)  0.13(K/AN). 
C)  0.05(K/AN). 
D)  0.18(K/AN). 
E)  0.08(K/AN).

Question 3

Explain the different dimensions of technological progress.

Accepted Answer

The answer of Explain the different dimensions of technological progress....

Question 4

Assume that an economy experiences both positive population growth and technological progress. Once the economy has achieved balanced growth, we know that the capital per worker (K/N) is

Accepted Answer

A)  growing at the same rate as Y/N. 
B)  growing at a rate of gN. 
C)  constant. 
D)  growing at a rate of gA + gN. 
E)  growing at a rate of gA - gN.

Question 5

Research suggest that the relatively higher rate of growth of output per capita in rich countries between 1985 and 2009 was the result of which of the following?

Accepted Answer

A)  An increase in the saving rate. 
B)  An increase in the rate of population growth. 
C)  A decrease in the saving rate. 
D)  An increase in the rate of technological progress. 
E)  An increase in capital per effective labour.

Question 6

Assume that an economy experiences both positive population growth and technological progress. Once the economy has achieved balanced growth, we know that output (Y) is

Accepted Answer

A)  growing at a rate of gA - gN. 
B)  growing at a rate of gA/gN. 
C)  growing at a rate of gA. 
D)  growing at a rate of gA + gN. 
E)  growing at a rate of gN.

Question 7

Assume the production function is represented by Y = F (K, AN). Given this production function and the constant returns to scale assumption, output will increase by 7% when which of the following occurs?

Accepted Answer

A)  K and AN increase by 7%. 
B)  N or A increase by 7%. 
C)  K and A increase by 7%. 
D)  N and A increase by 7%. 
E)  K or AN increase by 7%.

Question 8

"Convergence" in recent years can be mostly attributed to in the poorer countries.

Accepted Answer

A)  a crackdown on "pirate" technologies 
B)  higher net migration 
C)  greater technological progress 
D)  longer working hours 
E)  faster capital accumulation

Question 9

Discuss (i) the relative strengths of capital accumulation and technological progress in contributing to China's high growth rates during 1995- 2007; and (ii) the two main channels of technological progress in China.

Accepted Answer

The answer of Discuss (i) the relative strengths of capital...

Question 10

The evidence shows that, over the last 25 years, spending on research and development in the rich countries has:

Accepted Answer

A)  increased as a percentage of GDP. 
B)  decreased dramatically. 
C)  decreased slightly. 
D)  remained constant. 
E)  increased in absolute numbers, but decreased as a percentage of GDP.

Question 11

The nature of technological progress in more advanced countries is likely to be:

Accepted Answer

A)  developing new products. 
B)  developing new ideas. 
C)  developing new processes. 
D)  All of the above. 
E)  Both A and B.

Question 12

The source of growth for Australia from 1985- 2009 has mainly come from:

Accepted Answer

A)  high population growth. 
B)  a decrease in the depreciation rate. 
C)  a decrease in the rate of technological progress. 
D)  an increase in technological progress. 
E)  high capital accumulation.

Question 13

Discuss the different nature of technological progress between more advanced economies and less advanced economies. How is technological progress in less advanced economies connected to convergence to more advanced economies?

Accepted Answer

The answer of Discuss the different nature of technological progress...

Question 14

Which of the following will decrease the steady- state growth rate of output per worker?

Accepted Answer

A)  A decrease in technological progress. 
B)  A decrease in the rate of depreciation. 
C)  A decrease in the saving rate. 
D)  A decrease in the investment rate. 
E)  A decrease in the population growth rate.

Question 15

Explain what factors determine how much investment is required to maintain a given level of capital per effective worker.

Accepted Answer

The answer of Explain what factors determine how much investment...

Question 16

Let a represent labour's share of total output. The Solow residual is represented by:

Accepted Answer

A)  gy - [AgN + (1 - 
A)  gk]. 
B) 	gy. 
C)  1/(1- 
A) . 
D) 	AgN. 
E) 	gk.

Question 17

Assume that an economy experiences both positive population growth and technological progress. Once the economy has achieved balanced growth, we know that the capital stock is

Accepted Answer

A)  constant. 
B)  growing at a rate of gA + gN. 
C)  growing at a rate of gN. 
D)  growing at a rate of gA. 
E)  growing at a rate of gA - gN.

Question 18

Which of the following represents the appropriability of research?

Accepted Answer

A)  How R&D spending translates into new ideas. 
B)  The extent to which firms benefit from the results of their own R&D spending. 
C)  The rate of technological progress. 
D)  The protection given to new products by the law. 
E)  Both A and D.

Question 19

Which of the following represents a dimension of technological progress?

Accepted Answer

A)  A larger variety of products. 
B)  Larger quantities of output for given quantities of capital and labour. 
C)  New products. 
D)  Better products. 
E)  All of the above.

Question 20

The nature of technological progress in developing countries is more likely to be:

Accepted Answer

A)  new ideas and products. 
B)  innovation. 
C)  imitation. 
D)  All of the above. 
E)  None of the above.

Exam 12: Technological Progress and Growth