Question 1

In the production function Y = A • F(K,L), Y is:

Accepted Answer

A) good Y. 
B) production. 
C) the marginal product of good Y. 
D) constant returns to scale. 
A) good Y. 
B) production. 
C) the marginal product of good Y. 
D) constant returns to scale.

Question 2

Figure 3.1  
-Figure 3.1 shows:

Accepted Answer

A) a production function with labour and technology constant. 
B) a production function with capital and labour constant. 
C) a production function with capital and technology constant. 
D) a production function with capital, labour and technology constant. 
A) a production function with labour and technology constant. 
B) a production function with capital and labour constant. 
C) a production function with capital and technology constant. 
D) a production function with capital, labour and technology constant.

Question 3

Depreciation of the capital stock occurs due to:

Accepted Answer

A) machines deteriorating. 
B) vehicles needing parts. 
C) buildings needing repair. 
D) all of the above. 
A) machines deteriorating. 
B) vehicles needing parts. 
C) buildings needing repair. 
D) all of the above.

Question 4

The Solow residual is:

Accepted Answer

A) that part of output growth not attributed to labour force growth. 
B) that part of output growth not attributed to capital stock growth. 
C) that part of output growth not attributed to capital stock growth and labour force growth. 
D) the growth in output. 
A) that part of output growth not attributed to labour force growth. 
B) that part of output growth not attributed to capital stock growth. 
C) that part of output growth not attributed to capital stock growth and labour force growth. 
D) the growth in output.

Question 5

Among the categories the growth rate is broken down into by growth accounting is:

Accepted Answer

A) the growth rate of technology. 
B) the marginal product of capital. 
C) the capital labour ratio. 
D) all of the above. 
A) the growth rate of technology. 
B) the marginal product of capital. 
C) the capital labour ratio. 
D) all of the above.

Question 6

World growth data reveals that from 1960 to 2011:

Accepted Answer

A) all countries grew at similar rates. 
B) sub-Saharan African countries grew moderately. 
C) some countries particularly East Asian countries grew rapidly. 
D) the US and other OECD countries stagnated. 
A) all countries grew at similar rates. 
B) sub-Saharan African countries grew moderately. 
C) some countries particularly East Asian countries grew rapidly. 
D) the US and other OECD countries stagnated.

Question 7

If a country has a population of 100 million and a labour force of 60 million, then its labour force participation rate is:

Accepted Answer

A) 0.6. 
B) 1.67 
C) 40 million. 
D) 60 million. 
A) 0.6. 
B) 1.67 
C) 40 million. 
D) 60 million.

Question 8

Depreciation of the capital stock occurs due to:

Accepted Answer

A) inflation. 
B) buildings needing repair. 
C) bonds falling in value. 
D) all of the above. 
A) inflation. 
B) buildings needing repair. 
C) bonds falling in value. 
D) all of the above.

Question 9

Growth accounting shows that economic growth depends on:

Accepted Answer

A) increases in technology. 
B) the growth of the labour force. 
C) growth in the capital stock. 
D) all of the above. 
A) increases in technology. 
B) the growth of the labour force. 
C) growth in the capital stock. 
D) all of the above.

Question 10

Show why real saving equals net investment.

Accepted Answer

Real saving is the savings rate, s, time

Question 11

Figure 3.1  
-In Figure 3.1 the marginal product of capital is:

Accepted Answer

A) rising. 
B) declining. 
C) constant. 
D) unknown. 
A) rising. 
B) declining. 
C) constant. 
D) unknown.

Question 12

If A in the production function Y = A • F(K,L) rises, then:

Accepted Answer

A) output rises for any level of K and L. 
B) the marginal product of labour rises. 
C) the marginal product of capital rises. 
D) all of the above. 
A) output rises for any level of K and L. 
B) the marginal product of labour rises. 
C) the marginal product of capital rises. 
D) all of the above.

Question 13

What is the key equation of the Solow growth model and what does it say to us?

Accepted Answer

The central relation or key equation of

Question 14

The growth accounting formula is:

Accepted Answer

A)    
B)    
C)    
D) Y= A • F(K,L) 
A)    
B)    
C)    
D) Y= A • F(K,L)

Question 15

World growth data reveals that from 1960 to 2011:

Accepted Answer

A) the US and other OECD countries grew at moderate rates. 
B) sub-Saharan African countries grew rapidly. 
C) some countries particularly East Asian countries grew a low rates or declined. 
D) all of the above. 
A) the US and other OECD countries grew at moderate rates. 
B) sub-Saharan African countries grew rapidly. 
C) some countries particularly East Asian countries grew a low rates or declined. 
D) all of the above.

Question 16

The change in the capital stock in an economy depends on:

Accepted Answer

A) the economy's saving. 
B) the change in bond prices. 
C) the economy's investment. 
D) all of the above. 
A) the economy's saving. 
B) the change in bond prices. 
C) the economy's investment. 
D) all of the above.

Question 17

The Solow growth model ignores:

Accepted Answer

A) the international sector. 
B) the role of government. 
C) changes in labour force participation. 
D) all of the above. 
A) the international sector. 
B) the role of government. 
C) changes in labour force participation. 
D) all of the above.

Question 18

The Solow residual:

Accepted Answer

A) is not directly observable. 
B) attributed to labour force growth. 
C) is attributed to capital stock growth. 
D) is attributed to labour force growth and capital stock growth. 
A) is not directly observable. 
B) attributed to labour force growth. 
C) is attributed to capital stock growth. 
D) is attributed to labour force growth and capital stock growth.

Question 19

The average product of capital is:

Accepted Answer

A)    
B) Y/K. 
C)    . 
D)    . 
A)    
B) Y/K. 
C)    . 
D)    .

Question 20

What is the growth account formula and what does it tell us?

Accepted Answer

The growth accounting formula

In the production function Y = A • F(K,L), Y is:

Figure 3.1 -Figure 3.1 shows:

Depreciation of the capital stock occurs due to:

The Solow residual is:

Among the categories the growth rate is broken down into by growth accounting is:

World growth data reveals that from 1960 to 2011:

If a country has a population of 100 million and a labour force of 60 million, then its labour force participation rate is:

Depreciation of the capital stock occurs due to:

Growth accounting shows that economic growth depends on:

Show why real saving equals net investment.

Figure 3.1 -In Figure 3.1 the marginal product of capital is:

If A in the production function Y = A • F(K,L) rises, then:

What is the key equation of the Solow growth model and what does it say to us?

The growth accounting formula is:

World growth data reveals that from 1960 to 2011:

The change in the capital stock in an economy depends on:

The Solow growth model ignores:

The Solow residual:

The average product of capital is:

What is the growth account formula and what does it tell us?

Thinking About Macroeconomics

National-Income Accounting: Gross Domestic Product and the Price Level

Working With the Solow Growth Model

Conditional Convergence and Long-Run Economic Growth

Macroeconomics Without Microeconomic Foundations

Markets, Prices, Supply, and Demand

Consumption, Saving, and Investment

An Equilibrium Business-Cycle Model

Capital Utilization and Unemployment

The Demand for Money and the Price Level

Inflation, Money Growth, and Interest Rates

Government Expenditure

Taxes

Public Debt

Money and Business Cycles I: the Price-Misperceptions Model

Money and Business Cycles Ii: Sticky Prices and Nominal Wage Rates

World Markets in Goods and Credit

Exchange Rates

Filters

Exam 3: Introduction to Economic Growth

In the production function Y = A • F(K,L), Y is:

Figure 3.1 -Figure 3.1 shows:

Depreciation of the capital stock occurs due to:

The Solow residual is:

Among the categories the growth rate is broken down into by growth accounting is:

World growth data reveals that from 1960 to 2011:

If a country has a population of 100 million and a labour force of 60 million, then its labour force participation rate is:

Depreciation of the capital stock occurs due to:

Growth accounting shows that economic growth depends on:

Show why real saving equals net investment.

Figure 3.1 -In Figure 3.1 the marginal product of capital is:

If A in the production function Y = A • F(K,L) rises, then:

What is the key equation of the Solow growth model and what does it say to us?

The growth accounting formula is:

World growth data reveals that from 1960 to 2011:

The change in the capital stock in an economy depends on:

The Solow growth model ignores:

The Solow residual:

The average product of capital is:

What is the growth account formula and what does it tell us?

Thinking About Macroeconomics

National-Income Accounting: Gross Domestic Product and the Price Level

Working With the Solow Growth Model

Conditional Convergence and Long-Run Economic Growth

Macroeconomics Without Microeconomic Foundations

Markets, Prices, Supply, and Demand

Consumption, Saving, and Investment

An Equilibrium Business-Cycle Model

Capital Utilization and Unemployment

The Demand for Money and the Price Level

Inflation, Money Growth, and Interest Rates

Government Expenditure

Taxes

Public Debt

Money and Business Cycles I: the Price-Misperceptions Model

Money and Business Cycles Ii: Sticky Prices and Nominal Wage Rates

World Markets in Goods and Credit

Exchange Rates

Filters