Question 1

In the Solow Model, an increase in the saving rate will result in:

Accepted Answer

A)  a shift in the sY line upwards. 
B)  a steeper dK line. 
C)  a flatter dK line. 
D)  a shift in the sY line downwards. 
A)  a shift in the sY line upwards. 
B)  a steeper dK line. 
C)  a flatter dK line. 
D)  a shift in the sY line downwards.

Question 2

In the Solow Model, an increase in the saving rate will not result in an increase in

Accepted Answer

A)  the capital stock. 
B)  the output. 
C)  investment. 
D)  the population. 
A)  the capital stock. 
B)  the output. 
C)  investment. 
D)  the population.

Question 3

In the Solow Model, will a country choose a saving rate of 100 %? Why or why not?

Accepted Answer

No. The economy will not choos

Question 4

If gross investment is 500 and depreciation is 1000, then net investment is:

Accepted Answer

A)  1000. 
B)  500. 
C)  - 1500. 
D)  - 500. 
A)  1000. 
B)  500. 
C)  - 1500. 
D)  - 500.

Question 5

Recall Application 1 , "Global Warming, Rich Countries and Poor Countries," to answer the following questions:
-Based on what you learned from the application, which countries are negatively affected by global warming?

Accepted Answer

A)  rich countries 
B)  poor and rich countries 
C)  poor countries 
D)  industrialized countries 
A)  rich countries 
B)  poor and rich countries 
C)  poor countries 
D)  industrialized countries

Question 6

Saving is defined as:

Accepted Answer

A)  income that is not consumed. 
B)  money in my savings account. 
C)  money in my checking account. 
D)  consumption that is not earned. 
A)  income that is not consumed. 
B)  money in my savings account. 
C)  money in my checking account. 
D)  consumption that is not earned.

Question 7

Suppose that growth in labor is 5% while output (real GDP) grew at a rate of 4%, it must be the case that:

Accepted Answer

A)  real GDP per capita increased by 20%. 
B)  real GDP per capita increased. 
C)  real GDP per capita stayed constant. 
D)  real GDP per capita decreased. 
A)  real GDP per capita increased by 20%. 
B)  real GDP per capita increased. 
C)  real GDP per capita stayed constant. 
D)  real GDP per capita decreased.

Question 8

Recall Application 5, "The Role of Political Factors in Economic Growth," to answer the following questions:
-According to the application, which of the following is an example of authoritarian institutions?

Accepted Answer

A)  tightly controlled oligarchies 
B)  democracies 
C)  limited- monarchies 
D)  All of the above are correct. 
A)  tightly controlled oligarchies 
B)  democracies 
C)  limited- monarchies 
D)  All of the above are correct.

Question 9

Historical economic research shows that the accumulated investment in human capital during the last 300 years has produced:

Accepted Answer

A)  more productive workers. 
B)  taller workers. 
C)  heavier workers. 
D)  all of the above 
A)  more productive workers. 
B)  taller workers. 
C)  heavier workers. 
D)  all of the above

Question 10

Recall Application 5, "The Role of Political Factors in Economic Growth," to answer the following questions:
-According to the application, can technological growth exist in authoritarian institutions like the one experienced in China today?

Accepted Answer

A)  Yes, and the growth is expected to be sustained. 
B)  no. 
C)  Yes, but it may not be sustained. 
D)  Yes, but only if authoritarian regimes prevent change. 
A)  Yes, and the growth is expected to be sustained. 
B)  no. 
C)  Yes, but it may not be sustained. 
D)  Yes, but only if authoritarian regimes prevent change.

Question 11

Recall Application 3, "Sources of Growth in China and India," to answer the following questions:
-According to the application, which country is expected to see their GDP per capita gap with the U.S. decrease in the future?

Accepted Answer

A)  India 
B)  China 
C)  both China and India 
D)  neither China nor India 
A)  India 
B)  China 
C)  both China and India 
D)  neither China nor India

Question 12

Recall Application 3, "Sources of Growth in China and India," to answer the following questions:
-According to the application, the source of growth for India and China were:

Accepted Answer

A)  increased physical capital stock. 
B)  increased human capital stock. 
C)  both A and B are correct. 
D)  neither A nor B is correct. 
A)  increased physical capital stock. 
B)  increased human capital stock. 
C)  both A and B are correct. 
D)  neither A nor B is correct.

Question 13

Provide an example of how the lack of clear property rights can impede economic growth.

Accepted Answer

Answers can vary.
Sample answer: Without

Question 14

In the Solow Model, the long run equilibrium is at the point where:

Accepted Answer

A)  investment equals zero. 
B)  investment equals depreciation. 
C)  GDP equals K. 
D)  investment equals population growth. 
A)  investment equals zero. 
B)  investment equals depreciation. 
C)  GDP equals K. 
D)  investment equals population growth.

Question 15

According to the rule of 70, if Variable A grows at x% each year, then Variable A will double in approximately:

Accepted Answer

A)  70x years. 
B)  x/70 years. 
C)  70/x years. 
D)  70(1- x) years. 
A)  70x years. 
B)  x/70 years. 
C)  70/x years. 
D)  70(1- x) years.

Question 16

"Growth accounting" is concerned with explaining which of the following?

Accepted Answer

A)  sources of interest rate changes 
B)  sources of output growth 
C)  sources of unemployment 
D)  sources of inflation 
A)  sources of interest rate changes 
B)  sources of output growth 
C)  sources of unemployment 
D)  sources of inflation

Question 17

The larger the market, the higher the costs of technological progress.

Accepted Answer

A) True 
 B)False

Question 18

If saving is negative, which must be true?

Accepted Answer

A)  Production is greater than income. 
B)  Consumption is greater than income. 
C)  Income is greater than production. 
D)  Income is greater than consumption. 
A)  Production is greater than income. 
B)  Consumption is greater than income. 
C)  Income is greater than production. 
D)  Income is greater than consumption.

Question 19

A country that experiences population growth (holding K constant) will experience real GDP growth.

Accepted Answer

A) True 
 B)False

Question 20

An increase in human capital will cause an increase in economic growth.

Accepted Answer

A) True 
 B)False

In the Solow Model, an increase in the saving rate will result in:

In the Solow Model, an increase in the saving rate will not result in an increase in

In the Solow Model, will a country choose a saving rate of 100 %? Why or why not?

If gross investment is 500 and depreciation is 1000, then net investment is:

Recall Application 1 , "Global Warming, Rich Countries and Poor Countries," to answer the following questions: -Based on what you learned from the application, which countries are negatively affected by global warming?

Saving is defined as:

Suppose that growth in labor is 5% while output (real GDP) grew at a rate of 4%, it must be the case that:

Recall Application 5, "The Role of Political Factors in Economic Growth," to answer the following questions: -According to the application, which of the following is an example of authoritarian institutions?

Historical economic research shows that the accumulated investment in human capital during the last 300 years has produced:

Recall Application 5, "The Role of Political Factors in Economic Growth," to answer the following questions: -According to the application, can technological growth exist in authoritarian institutions like the one experienced in China today?

Recall Application 3, "Sources of Growth in China and India," to answer the following questions: -According to the application, which country is expected to see their GDP per capita gap with the U.S. decrease in the future?

Recall Application 3, "Sources of Growth in China and India," to answer the following questions: -According to the application, the source of growth for India and China were:

Provide an example of how the lack of clear property rights can impede economic growth.

In the Solow Model, the long run equilibrium is at the point where:

According to the rule of 70, if Variable A grows at x% each year, then Variable A will double in approximately:

"Growth accounting" is concerned with explaining which of the following?

The larger the market, the higher the costs of technological progress.

If saving is negative, which must be true?

A country that experiences population growth (holding K constant) will experience real GDP growth.

An increase in human capital will cause an increase in economic growth.

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Demand, Supply, and Market Equilibrium

Measuring a Nations Production and Income

Unemployment and Inflation

The Economy at Full Employment

Aggregate Demand and Aggregate Supply

Fiscal Policy

The Income-Expenditure Model

Investment and Financial Markets

Money and the Banking System

The Federal Reserve and Monetary Policy

Modern Macroeconomics: From the Short Run to the Long Run

The Dynamics of Inflation and Unemployment

Macroeconomic Policy Debates

International Trade and Public Policy

The World of International Finance

Filters

Exam 8: Why Do Economies Grow

In the Solow Model, an increase in the saving rate will result in:

In the Solow Model, an increase in the saving rate will not result in an increase in

In the Solow Model, will a country choose a saving rate of 100 %? Why or why not?

If gross investment is 500 and depreciation is 1000, then net investment is:

Recall Application 1 , "Global Warming, Rich Countries and Poor Countries," to answer the following questions: -Based on what you learned from the application, which countries are negatively affected by global warming?

Saving is defined as:

Suppose that growth in labor is 5% while output (real GDP) grew at a rate of 4%, it must be the case that:

Recall Application 5, "The Role of Political Factors in Economic Growth," to answer the following questions: -According to the application, which of the following is an example of authoritarian institutions?

Historical economic research shows that the accumulated investment in human capital during the last 300 years has produced:

Recall Application 5, "The Role of Political Factors in Economic Growth," to answer the following questions: -According to the application, can technological growth exist in authoritarian institutions like the one experienced in China today?

Recall Application 3, "Sources of Growth in China and India," to answer the following questions: -According to the application, which country is expected to see their GDP per capita gap with the U.S. decrease in the future?

Recall Application 3, "Sources of Growth in China and India," to answer the following questions: -According to the application, the source of growth for India and China were:

Provide an example of how the lack of clear property rights can impede economic growth.

In the Solow Model, the long run equilibrium is at the point where:

According to the rule of 70, if Variable A grows at x% each year, then Variable A will double in approximately:

"Growth accounting" is concerned with explaining which of the following?

The larger the market, the higher the costs of technological progress.

If saving is negative, which must be true?

A country that experiences population growth (holding K constant) will experience real GDP growth.

An increase in human capital will cause an increase in economic growth.

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Demand, Supply, and Market Equilibrium

Measuring a Nations Production and Income

Unemployment and Inflation

The Economy at Full Employment

Aggregate Demand and Aggregate Supply

Fiscal Policy

The Income-Expenditure Model

Investment and Financial Markets

Money and the Banking System

The Federal Reserve and Monetary Policy

Modern Macroeconomics: From the Short Run to the Long Run

The Dynamics of Inflation and Unemployment

Macroeconomic Policy Debates

International Trade and Public Policy

The World of International Finance

Filters