Question 1

Growth in real GDP per-capita in Canada is roughly consistent with which of the following predictions of the Solow model?

Accepted Answer

A) convergence to a steady state level of real GDP per-capita 
B) a steady increase in the savings rate 
C) a convergence with lower income countries 
D) a constant growth rate in the growth rate of the labour force 
E) exogenous TFP growth at a constant rate 
A) convergence to a steady state level of real GDP per-capita 
B) a steady increase in the savings rate 
C) a convergence with lower income countries 
D) a constant growth rate in the growth rate of the labour force 
E) exogenous TFP growth at a constant rate

Question 2

Recent evidence suggests that output per worker is

Accepted Answer

A) negatively related to the rate of investment and positively related to the rate of population growth. 
B) negatively related to both the rate of investment and to the rate of population growth. 
C) negatively related to the rate of investment and not related at all to the rate of population growth. 
D) positively related to the rate of investment and negatively related to the rate of population growth. 
E) positively related to both the rate of investment and to the rate of population growth. 
A) negatively related to the rate of investment and positively related to the rate of population growth. 
B) negatively related to both the rate of investment and to the rate of population growth. 
C) negatively related to the rate of investment and not related at all to the rate of population growth. 
D) positively related to the rate of investment and negatively related to the rate of population growth. 
E) positively related to both the rate of investment and to the rate of population growth.

Question 3

Rates of growth of real per capita income are most alike amongst

Accepted Answer

A) the United States and in Africa. 
B) the richest countries but not the poorest countries. 
C) the richest countries and the poorest countries. 
D) the poorest countries but not the richest countries. 
E) neither the richest nor the poorest countries. 
A) the United States and in Africa. 
B) the richest countries but not the poorest countries. 
C) the richest countries and the poorest countries. 
D) the poorest countries but not the richest countries. 
E) neither the richest nor the poorest countries.

Question 4

In the Solow growth model, the law of motion of capital takes into account

Accepted Answer

A) the depreciation of old capital. 
B) the residential nature of houses. 
C) the impact of consumption on population growth. 
D) the mobility of capital. 
E) the costs of shipping and installing capital. 
A) the depreciation of old capital. 
B) the residential nature of houses. 
C) the impact of consumption on population growth. 
D) the mobility of capital. 
E) the costs of shipping and installing capital.

Question 5

Countries in which a relatively small fraction of output is channeled into investment tend to have a

Accepted Answer

A) relatively high level of government spending. 
B) relatively low standard of living. 
C) relatively high level of capital stock. 
D) relatively high rate of consumption. 
E) relatively low rate of population growth. 
A) relatively high level of government spending. 
B) relatively low standard of living. 
C) relatively high level of capital stock. 
D) relatively high rate of consumption. 
E) relatively low rate of population growth.

Question 6

On average, from 1870-2017, real GDP per capita in Canada grew at about

Accepted Answer

A) -1.2%. 
B) 4.1%. 
C) 2.0%. 
D) 0.6%. 
E) 8.7%. 
A) -1.2%. 
B) 4.1%. 
C) 2.0%. 
D) 0.6%. 
E) 8.7%.

Question 7

The Malthusian model emphasizes a fixed supply of which of the following factors of production?

Accepted Answer

A) energy 
B) capital 
C) natural resources 
D) labour 
E) land 
A) energy 
B) capital 
C) natural resources 
D) labour 
E) land

Question 8

After 2011 in Canada

Accepted Answer

A) growth in the labour input was historically low. 
B) growth in real output ceased. 
C) growth in output was historically high. 
D) growth in productivity was historically high. 
E) growth in real GDP was higher than in the period 1991 2001. 
A) growth in the labour input was historically low. 
B) growth in real output ceased. 
C) growth in output was historically high. 
D) growth in productivity was historically high. 
E) growth in real GDP was higher than in the period 1991 2001.

Question 9

In the Malthusian model, the population growth rate is

Accepted Answer

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

Question 10

The Malthusian model performs poorly in explaining economic growth after the

Accepted Answer

A) American Revolution. 
B) French Revolution. 
C) Industrial Revolution. 
D) Bio-technology Revolution. 
E) Second World War. 
A) American Revolution. 
B) French Revolution. 
C) Industrial Revolution. 
D) Bio-technology Revolution. 
E) Second World War.

Question 11

In the Malthusian model, population growth depends on

Accepted Answer

A) level of nutrition. 
B) consumption per worker. 
C) total factor productivity. 
D) labour supply. 
E) income per worker. 
A) level of nutrition. 
B) consumption per worker. 
C) total factor productivity. 
D) labour supply. 
E) income per worker.

Question 12

The Solow model emphasizes the role of which of the following factors of production?

Accepted Answer

A) land 
B) education 
C) natural resources 
D) capital 
E) labour 
A) land 
B) education 
C) natural resources 
D) capital 
E) labour

Question 13

If the savings rate increases in the Solow growth model

Accepted Answer

A) the growth rate in output per capita increases in the long run. 
B) output per capita falls in the long run. 
C) the investment rate declines. 
D) output per capita increases in the long run. 
E) capital per worker grows at a higher rate in the long run. 
A) the growth rate in output per capita increases in the long run. 
B) output per capita falls in the long run. 
C) the investment rate declines. 
D) output per capita increases in the long run. 
E) capital per worker grows at a higher rate in the long run.

Question 14

The per worker production function relates output per worker

Accepted Answer

A) total factor productivity. 
B) to capital per worker. 
C) to the participation rate. 
D) in different countries. 
E) to production per worker. 
A) total factor productivity. 
B) to capital per worker. 
C) to the participation rate. 
D) in different countries. 
E) to production per worker.

Question 15

Malthus was too pessimistic because he did not foresee the effects of

Accepted Answer

A) ever increasing amounts of land for cultivation. 
B) improved nutrition and health care. 
C) improved family planning practices. 
D) increases in the capital stock and the effects of such increases on production. 
E) increase productivity of land. 
A) ever increasing amounts of land for cultivation. 
B) improved nutrition and health care. 
C) improved family planning practices. 
D) increases in the capital stock and the effects of such increases on production. 
E) increase productivity of land.

Question 16

A pessimistic long-run Malthusian result is

Accepted Answer

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

Question 17

For the production function, $Y = z K 0.36 N 0.64$, if measured output is $\hat { Y }$, measured capital input is $\hat { K }$, and measured labour input is $\hat { N }$, then the Solow residual would be equal to

Accepted Answer

A)  $\frac { \hat { K } ^ { 0.36 } \hat { N } ^ { 0.64 } } { \hat { Y } }$. 
B)  $\frac { \hat { K } ^ { 0.36 } } { \hat { N } ^ { 0.64 } } \times \hat { Y }$. 
C)  $\frac { \hat { Y } } { \hat { K } ^ { 0.36 } \hat { N } ^ { 0.64 } }$. 
D)  $\frac { \hat { N } 0.64 } { \hat { K } 0.36 } \times \hat { Y }$. 
E)  $\frac { \hat { K } 0.36 } { \hat { N } ^ { 0.64 } } \times z \hat { Y }$. 
A)  $\frac { \hat { K } ^ { 0.36 } \hat { N } ^ { 0.64 } } { \hat { Y } }$. 
B)  $\frac { \hat { K } ^ { 0.36 } } { \hat { N } ^ { 0.64 } } \times \hat { Y }$. 
C)  $\frac { \hat { Y } } { \hat { K } ^ { 0.36 } \hat { N } ^ { 0.64 } }$. 
D)  $\frac { \hat { N } 0.64 } { \hat { K } 0.36 } \times \hat { Y }$. 
E)  $\frac { \hat { K } 0.36 } { \hat { N } ^ { 0.64 } } \times z \hat { Y }$.

Question 18

If income in a country is equally distributed across the population, then

Accepted Answer

A) the Gini coefficient is equal to 0. 
B) the Gini coefficient is equal to 1. 
C) the Lorenz curve is L-shaped. 
D) the Gini coefficient is undefined. 
E) the Gini coefficient is equal to 1/2. 
A) the Gini coefficient is equal to 0. 
B) the Gini coefficient is equal to 1. 
C) the Lorenz curve is L-shaped. 
D) the Gini coefficient is undefined. 
E) the Gini coefficient is equal to 1/2.

Question 19

The per worker production function describes the relationship between

Accepted Answer

A) capital per worker and total factor productivity. 
B) government spending and total factor productivity. 
C) labour supply and land per worker. 
D) consumption per worker and income per worker. 
E) output per worker and land per worker. 
A) capital per worker and total factor productivity. 
B) government spending and total factor productivity. 
C) labour supply and land per worker. 
D) consumption per worker and income per worker. 
E) output per worker and land per worker.

Question 20

In the Malthusian model, when z increases, initially consumption

Accepted Answer

A) increases and remains above the original steady state level forever. 
B) increases and then falls to its steady state level. 
C) decreases and remains below the original steady state level forever. 
D) decreases and then increases to its steady state level. 
E) is unaffected by the change in z. 
A) increases and remains above the original steady state level forever. 
B) increases and then falls to its steady state level. 
C) decreases and remains below the original steady state level forever. 
D) decreases and then increases to its steady state level. 
E) is unaffected by the change in z.

Growth in real GDP per-capita in Canada is roughly consistent with which of the following predictions of the Solow model?

Recent evidence suggests that output per worker is

Rates of growth of real per capita income are most alike amongst

In the Solow growth model, the law of motion of capital takes into account

Countries in which a relatively small fraction of output is channeled into investment tend to have a

On average, from 1870-2017, real GDP per capita in Canada grew at about

The Malthusian model emphasizes a fixed supply of which of the following factors of production?

After 2011 in Canada

In the Malthusian model, the population growth rate is

The Malthusian model performs poorly in explaining economic growth after the

In the Malthusian model, population growth depends on

The Solow model emphasizes the role of which of the following factors of production?

If the savings rate increases in the Solow growth model

The per worker production function relates output per worker

Malthus was too pessimistic because he did not foresee the effects of

A pessimistic long-run Malthusian result is

For the production function, $Y = z K 0.36 N 0.64$ , if measured output is $\hat { Y }$ , measured capital input is $\hat { K }$ , and measured labour input is $\hat { N }$ , then the Solow residual would be equal to

If income in a country is equally distributed across the population, then

The per worker production function describes the relationship between

In the Malthusian model, when z increases, initially consumption

Introduction

Measurement

Business Cycle Measurement

Consumer and Firm Behavior: the Workleisure 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 Consumptionsavings Decision and Credit Markets

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

A Real Intertemporal Model With Investment

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

Growth in real GDP per-capita in Canada is roughly consistent with which of the following predictions of the Solow model?

Recent evidence suggests that output per worker is

Rates of growth of real per capita income are most alike amongst

In the Solow growth model, the law of motion of capital takes into account

Countries in which a relatively small fraction of output is channeled into investment tend to have a

On average, from 1870-2017, real GDP per capita in Canada grew at about

The Malthusian model emphasizes a fixed supply of which of the following factors of production?

After 2011 in Canada

In the Malthusian model, the population growth rate is

The Malthusian model performs poorly in explaining economic growth after the

In the Malthusian model, population growth depends on

The Solow model emphasizes the role of which of the following factors of production?

If the savings rate increases in the Solow growth model

The per worker production function relates output per worker

Malthus was too pessimistic because he did not foresee the effects of

A pessimistic long-run Malthusian result is

For the production function, Y=zK0.36N0.64Y = z K 0.36 N 0.64Y=zK0.36N0.64 , if measured output is Y^\hat { Y }Y^ , measured capital input is K^\hat { K }K^ , and measured labour input is N^\hat { N }N^ , then the Solow residual would be equal to

If income in a country is equally distributed across the population, then

The per worker production function describes the relationship between

In the Malthusian model, when z increases, initially consumption

Introduction

Measurement

Business Cycle Measurement

Consumer and Firm Behavior: the Workleisure 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 Consumptionsavings Decision and Credit Markets

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

A Real Intertemporal Model With Investment

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

For the production function, $Y = z K 0.36 N 0.64$ , if measured output is $\hat { Y }$ , measured capital input is $\hat { K }$ , and measured labour input is $\hat { N }$ , then the Solow residual would be equal to