Question 1

A pessimistic long-run Malthusian result is

Accepted Answer

A)  increases in land use lowers standards of living. 
B)  higher labour supply does not increase total factor productivity. 
C)  increases in capital stock does not achieve the steady state. 
D)  improvements in technology does not improve standards of living. 
E)  population control does not increase total factor productivity. 
A)  increases in land use lowers standards of living. 
B)  higher labour supply does not increase total factor productivity. 
C)  increases in capital stock does not achieve the steady state. 
D)  improvements in technology does not improve standards of living. 
E)  population control does not increase total factor productivity.

Question 2

An increase in savings can be brought about

Accepted Answer

A)  by increased total factor productivity. 
B)  by increased consumption per worker. 
C)  in the short run only. 
D)  through government policy. 
E)  by increased labour supply. 
A)  by increased total factor productivity. 
B)  by increased consumption per worker. 
C)  in the short run only. 
D)  through government policy. 
E)  by increased labour supply.

Question 3

Which of the following is not different between the Solow and Malthusian models?

Accepted Answer

A)  The production function has decreasing marginal returns. 
B)  Households save. 
C)  Population growth is exogenous. 
D)  There is capital accumulation. 
E)  Advances in technology can sustain economic growth. 
A)  The production function has decreasing marginal returns. 
B)  Households save. 
C)  Population growth is exogenous. 
D)  There is capital accumulation. 
E)  Advances in technology can sustain economic growth.

Question 4

In the Malthusian model, the population growth rate is

Accepted Answer

A)  exogenous. 
B)  positively related to consumption per worker. 
C)  negatively related to consumption per worker. 
D)  assumed to be constant. 
E)  not related to consumption per worker. 
A)  exogenous. 
B)  positively related to consumption per worker. 
C)  negatively related to consumption per worker. 
D)  assumed to be constant. 
E)  not related to consumption per worker.

Question 5

In the Malthusian model, an improvement in the technology of growing food is likely to

Accepted Answer

A)  increase the equilibrium size of the population and increase the equilibrium level of consumption per worker. 
B)  increase the equilibrium size of the population and decrease the equilibrium level of consumption per worker. 
C)  increase the equilibrium size of the population and have no effect on the equilibrium level of consumption per worker. 
D)  have no effect on the equilibrium size of the population and increase the equilibrium level of consumption per worker. 
E)  have no effect on both the equilibrium size of the population and the equilibrium level of consumption per worker. 
A)  increase the equilibrium size of the population and increase the equilibrium level of consumption per worker. 
B)  increase the equilibrium size of the population and decrease the equilibrium level of consumption per worker. 
C)  increase the equilibrium size of the population and have no effect on the equilibrium level of consumption per worker. 
D)  have no effect on the equilibrium size of the population and increase the equilibrium level of consumption per worker. 
E)  have no effect on both the equilibrium size of the population and the equilibrium level of consumption per worker.

Question 6

Recent evidence suggests that the level of output per worker is

Accepted Answer

A)  positively correlated with the growth rate in output per worker. 
B)  negatively correlated with the rate of population growth. 
C)  positively correlated with the rate of population growth. 
D)  negatively correlated with growth rate in output per worker. 
E)  not correlated with the growth rate in output per worker. 
A)  positively correlated with the growth rate in output per worker. 
B)  negatively correlated with the rate of population growth. 
C)  positively correlated with the rate of population growth. 
D)  negatively correlated with growth rate in output per worker. 
E)  not correlated with the growth rate in output per worker.

Question 7

Recent evidence shows that there is a

Accepted Answer

A)  negative correlation between the population growth rate and income per worker across countries. 
B)  positive correlation between the population growth rate and income per worker across countries. 
C)  negative correlation between the savings rate and the quantity of income per worker. 
D)  positive correlation between labour force growth and the quantity of income per worker. 
E)  negative correlation between capital investment and quantity of income per worker. 
A)  negative correlation between the population growth rate and income per worker across countries. 
B)  positive correlation between the population growth rate and income per worker across countries. 
C)  negative correlation between the savings rate and the quantity of income per worker. 
D)  positive correlation between labour force growth and the quantity of income per worker. 
E)  negative correlation between capital investment and quantity of income per worker.

Question 8

In an exogenous growth model, growth is caused by

Accepted Answer

A)  capital accumulation. 
B)  government policies. 
C)  human capital accumulation. 
D)  forces that are not explained by the model itself. 
E)  total factor productivity. 
A)  capital accumulation. 
B)  government policies. 
C)  human capital accumulation. 
D)  forces that are not explained by the model itself. 
E)  total factor productivity.

Question 9

The idea that an improvement in technology causes an increase in population but causes no increase in the average standard of living is attributed to

Accepted Answer

A)  Adam Smith. 
B)  Thomas Malthus. 
C)  Robert Solow. 
D)  Milton Friedman. 
E)  Robert Lucas. 
A)  Adam Smith. 
B)  Thomas Malthus. 
C)  Robert Solow. 
D)  Milton Friedman. 
E)  Robert Lucas.

Question 10

After the 2008-2009 recession in Canada

Accepted Answer

A)  growth in the labour input was historically low. 
B)  growth in output was historically high. 
C)  growth in productivity was historically high. 
D)  growth in real GDP was lower than in the period 2001-2009. 
E)  growth in real output ceased. 
A)  growth in the labour input was historically low. 
B)  growth in output was historically high. 
C)  growth in productivity was historically high. 
D)  growth in real GDP was lower than in the period 2001-2009. 
E)  growth in real output ceased.

Question 11

Growth in the Solow residual was fastest in the

Accepted Answer

A)  1950s. 
B)  1960s. 
C)  1970s. 
D)  1980s. 
E)  1990s. 
A)  1950s. 
B)  1960s. 
C)  1970s. 
D)  1980s. 
E)  1990s.

Question 12

Before the Industrial Revolution, standards of living differed

Accepted Answer

A)  greatly over time and across countries. 
B)  little over time but differed greatly across countries. 
C)  greatly over time but differed little across countries. 
D)  little over time and across countries. 
E)  greatly over time, but was the same across countries. 
A)  greatly over time and across countries. 
B)  little over time but differed greatly across countries. 
C)  greatly over time but differed little across countries. 
D)  little over time and across countries. 
E)  greatly over time, but was the same across countries.

Question 13

The Malthusian model has the property that

Accepted Answer

A)  increased education levels leads to increased population growth. 
B)  increased consumption leads to increased population growth. 
C)  increased capital stock leads to increased total factor productivity. 
D)  improvements in technology for producing goods leads to increased population growth. 
E)  improvements in standards of living leads to population growth. 
A)  increased education levels leads to increased population growth. 
B)  increased consumption leads to increased population growth. 
C)  increased capital stock leads to increased total factor productivity. 
D)  improvements in technology for producing goods leads to increased population growth. 
E)  improvements in standards of living leads to population growth.

Question 14

Accepted Answer

A)    
B)    
C)    
D)    
E)    
A)    
B)    
C)    
D)    
E)

Question 15

In the Malthusian model, the long-run standard of living is determined entirely by the function g(c), which describes how

Accepted Answer

A)  consumption per worker drives population growth. 
B)  technology affects the growth of output. 
C)  the death rate depends on technological change. 
D)  the birth rate depends on population growth. 
E)  consumption per worker drives production. 
A)  consumption per worker drives population growth. 
B)  technology affects the growth of output. 
C)  the death rate depends on technological change. 
D)  the birth rate depends on population growth. 
E)  consumption per worker drives production.

Question 16

The golden rule savings rate is achieved when capital is accumulated at a rate that

Accepted Answer

A)  maximizes consumption per worker in the steady state. 
B)  keeps consumption per worker constant in the steady state. 
C)  population growth exceeds the depreciation rate. 
D)  minimizes the effects of consumption growth on population growth. 
E)  minimizes consumption per worker in the steady state. 
A)  maximizes consumption per worker in the steady state. 
B)  keeps consumption per worker constant in the steady state. 
C)  population growth exceeds the depreciation rate. 
D)  minimizes the effects of consumption growth on population growth. 
E)  minimizes consumption per worker in the steady state.

Question 17

In the steady state of Solow's exogenous growth model, an increase in the savings rate

Accepted Answer

A)  increases output per worker and increases capital per worker. 
B)  increases output per worker and decreases capital per worker. 
C)  decreases output per worker and increases capital per worker. 
D)  decreases output per worker and decreases capital per worker. 
E)  increases output per worker, reduces consumption per worker and decreases capital per worker. 
A)  increases output per worker and increases capital per worker. 
B)  increases output per worker and decreases capital per worker. 
C)  decreases output per worker and increases capital per worker. 
D)  decreases output per worker and decreases capital per worker. 
E)  increases output per worker, reduces consumption per worker and decreases capital per worker.

Question 18

What are the key differences between the Malthusian and Solow models of economic growth?

Accepted Answer

The Malthusian model contains no investm

Question 19

In the steady state of Solow's exogenous growth model, an increase in the population growth rate

Accepted Answer

A)  increases output per worker and increases capital per worker. 
B)  increases output per worker and decreases capital per worker. 
C)  decreases output per worker and increases capital per worker. 
D)  decreases output per worker and decreases capital per worker. 
E)  decreases output per worker and the marginal product of labour. 
A)  increases output per worker and increases capital per worker. 
B)  increases output per worker and decreases capital per worker. 
C)  decreases output per worker and increases capital per worker. 
D)  decreases output per worker and decreases capital per worker. 
E)  decreases output per worker and the marginal product of labour.

Question 20

The Solow growth model predicts that a country's standard of living can continue to increase in the long run only if

Accepted Answer

A)  there is sustained increases in the capital stock. 
B)  there is sustained increases in the population. 
C)  there is sustained increases in the labour force. 
D)  there is sustained increases in government spending. 
E)  there is sustained increases in total factor productivity. 
A)  there is sustained increases in the capital stock. 
B)  there is sustained increases in the population. 
C)  there is sustained increases in the labour force. 
D)  there is sustained increases in government spending. 
E)  there is sustained increases in total factor productivity.

A pessimistic long-run Malthusian result is

An increase in savings can be brought about

Which of the following is not different between the Solow and Malthusian models?

In the Malthusian model, the population growth rate is

In the Malthusian model, an improvement in the technology of growing food is likely to

Recent evidence suggests that the level of output per worker is

Recent evidence shows that there is a

In an exogenous growth model, growth is caused by

The idea that an improvement in technology causes an increase in population but causes no increase in the average standard of living is attributed to

After the 2008-2009 recession in Canada

Growth in the Solow residual was fastest in the

Before the Industrial Revolution, standards of living differed

The Malthusian model has the property that

In the Malthusian model, the long-run standard of living is determined entirely by the function g(c), which describes how

The golden rule savings rate is achieved when capital is accumulated at a rate that

In the steady state of Solow's exogenous growth model, an increase in the savings rate

What are the key differences between the Malthusian and Solow models of economic growth?

In the steady state of Solow's exogenous growth model, an increase in the population growth rate

The Solow growth model predicts that a country's standard of living can continue to increase in the long run only if

Introduction

Measurement

Business Cycle Measurement

Consumer and Firm Behaviour: The Work–Leisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Income Disparity among Countries and Endogenous Growth

A Two-Period Model: The Consumption–Savings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

A Real Intertemporal Model with Investment

A Monetary Intertemporal Model: Money, Banking, Prices, and Monetary Policy

Business Cycle Models with Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

Inflation: Phillips Curves and Neo-Fisherism

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking: A Deeper Look

Filters

Exam 7: Economic Growth: Malthus and Solow

A pessimistic long-run Malthusian result is

An increase in savings can be brought about

Which of the following is not different between the Solow and Malthusian models?

In the Malthusian model, the population growth rate is

In the Malthusian model, an improvement in the technology of growing food is likely to

Recent evidence suggests that the level of output per worker is

Recent evidence shows that there is a

In an exogenous growth model, growth is caused by

The idea that an improvement in technology causes an increase in population but causes no increase in the average standard of living is attributed to

After the 2008-2009 recession in Canada

Growth in the Solow residual was fastest in the

Before the Industrial Revolution, standards of living differed

The Malthusian model has the property that

In the Malthusian model, the long-run standard of living is determined entirely by the function g(c), which describes how

The golden rule savings rate is achieved when capital is accumulated at a rate that

In the steady state of Solow's exogenous growth model, an increase in the savings rate

What are the key differences between the Malthusian and Solow models of economic growth?

In the steady state of Solow's exogenous growth model, an increase in the population growth rate

The Solow growth model predicts that a country's standard of living can continue to increase in the long run only if

Introduction

Measurement

Business Cycle Measurement

Consumer and Firm Behaviour: The Work–Leisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Income Disparity among Countries and Endogenous Growth

A Two-Period Model: The Consumption–Savings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

A Real Intertemporal Model with Investment

A Monetary Intertemporal Model: Money, Banking, Prices, and Monetary Policy

Business Cycle Models with Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

Inflation: Phillips Curves and Neo-Fisherism

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking: A Deeper Look

Filters