Question 1

A characteristic of a scientific theory is that it is:

Accepted Answer

A)  confirmed by circumstantial evidence. 
B)  falsifiable. 
C)  accepted without further challenges so that scientists can move on to further knowledge. 
D)  All the above. 
E)  None of the above. 
A)  confirmed by circumstantial evidence. 
B)  falsifiable. 
C)  accepted without further challenges so that scientists can move on to further knowledge. 
D)  All the above. 
E)  None of the above.

Question 2

In the Solow model, the transition from one steady state to another is referred to as?

Accepted Answer

A)  long-run growth. 
B)  medium-run growth. 
C)  short-run growth. 
D)  none of the above. 
A)  long-run growth. 
B)  medium-run growth. 
C)  short-run growth. 
D)  none of the above.

Question 3

In the Solow model with a positive rate of population growth n and technological progress z, the steady state level of real output per effective worker y grows at the rate:

Accepted Answer

A)  n. 
B)  zero. 
C)  z. 
D)  n + z. 
A)  n. 
B)  zero. 
C)  z. 
D)  n + z.

Question 4

Labor-augmenting technological progress, denoted as E in the textbook, enters the production function as follows:

Accepted Answer

A)  Y = E[F(K, L)]. 
B)  Y = F[K, (L·
E) ]. 
C)  Y = F[(K·
E) ,L]. 
D)  Y = F(K,L)/E. 
A)  Y = E[F(K, L)]. 
B)  Y = F[K, (L·
E) ]. 
C)  Y = F[(K·
E) ,L]. 
D)  Y = F(K,L)/E.

Question 5

According to Paul Krugman, the rapid growth rates of the Asian Tigers are

Accepted Answer

A)  a true miracle. 
B)  the result of a transition to a higher steady state equilibrium brought about by sharp increases in saving and their effective labor forces. 
C)  the result of a transition to a higher steady state equilibrium brought about by an increases in consumption and a decrease in saving. 
D)  the result of rapid technological progress, based largely on copying ideas from developed countries. 
A)  a true miracle. 
B)  the result of a transition to a higher steady state equilibrium brought about by sharp increases in saving and their effective labor forces. 
C)  the result of a transition to a higher steady state equilibrium brought about by an increases in consumption and a decrease in saving. 
D)  the result of rapid technological progress, based largely on copying ideas from developed countries.

Question 6

The holistic approach to seeking knowledge recognizes that:

Accepted Answer

A)  the scientific method is not useful. 
B)  the component parts of the whole cannot be understood in isolation. 
C)  understanding the component parts is all that is necessary for understanding the whole. 
D)  reality is spiritual, not scientific. 
A)  the scientific method is not useful. 
B)  the component parts of the whole cannot be understood in isolation. 
C)  understanding the component parts is all that is necessary for understanding the whole. 
D)  reality is spiritual, not scientific.

Question 7

In the Solow model, the transition from one steady state to another is referred to as:

Accepted Answer

A)  long-run growth. 
B)  medium-run growth. 
C)  short-run growth. 
D)  permanent growth. 
A)  long-run growth. 
B)  medium-run growth. 
C)  short-run growth. 
D)  permanent growth.

Question 8

If the equation Y = F(K,L) represents a constant returns to scale production function, then for any positive constant c the following must also hold:

Accepted Answer

A)  Y = F(cK,cL). 
B)  cY = cF(K,L). 
C)  cY = F(K,cL). 
D)  cY = F(cK,cL). 
A)  Y = F(cK,cL). 
B)  cY = cF(K,L). 
C)  cY = F(K,cL). 
D)  cY = F(cK,cL).

Question 9

Early 19th century economists like Thomas Malthus and John Stuart Mill claimed that:

Accepted Answer

A)  any increase in real per capita income will ultimately be canceled out by population growth and diminishing returns. 
B)  economic growth can last forever because there are no limits to human creativity. 
C)  economic growth would eventually cease because people get lazy and work less. 
D)  people tend to multiply like rabbits and they will, therefore, never progress. 
A)  any increase in real per capita income will ultimately be canceled out by population growth and diminishing returns. 
B)  economic growth can last forever because there are no limits to human creativity. 
C)  economic growth would eventually cease because people get lazy and work less. 
D)  people tend to multiply like rabbits and they will, therefore, never progress.

Question 10

The Harrod-Domar model predicts that if the saving rate is 10% and the capital output ratio is a constant equal to 2, then the economy will grow at a rate of:

Accepted Answer

A)  2% 
B)  5% 
C)  10% 
D)  20% 
E)  None of the above. 
A)  2% 
B)  5% 
C)  10% 
D)  20% 
E)  None of the above.

Question 11

The scientific method consists of a series of well defined steps that must be followed. Included among these steps is (are):

Accepted Answer

A)  Observe some world phenomenon or fact. 
B)  state a hypothesis (an untested idea) that clearly and logically explains the facts you observe. 
C)  Record everything you do and observe. 
D)  All the above. 
E)  None of the above. 
A)  Observe some world phenomenon or fact. 
B)  state a hypothesis (an untested idea) that clearly and logically explains the facts you observe. 
C)  Record everything you do and observe. 
D)  All the above. 
E)  None of the above.

Question 12

The scientist Richard Dawkins refers to the process of breaking down a complex phenomenon into components in order to provide a consistent explanation of phenomena that operate on many levels as:

Accepted Answer

A)  hierarchical reductionism. 
B)  ecological separation. 
C)  holistic perception. 
D)  scientific inconsistency. 
A)  hierarchical reductionism. 
B)  ecological separation. 
C)  holistic perception. 
D)  scientific inconsistency.

Question 13

Under the assumptions that (1) labor-augmenting technological progress is equal to z and (2) the labor force grows at the rate of n, the Solow model predicts that in the steady state:

Accepted Answer

A)  output grows at the rate of n + z. 
B)  per worker output grows at the rate of z. 
C)  output per effective worker is constant. 
D)  All of the above. 
E)  None of the above. 
A)  output grows at the rate of n + z. 
B)  per worker output grows at the rate of z. 
C)  output per effective worker is constant. 
D)  All of the above. 
E)  None of the above.

Question 14

The Harrod-Domar growth model has lost favor among economists because, fundamentally:

Accepted Answer

A)  it is a short-run model and growth is a long-run process. 
B)  it is a short-run model and growth is a short-run process. 
C)  it is a long-run model and growth is a long-run process. 
D)  it is a long-run model and growth is a short-run process. 
A)  it is a short-run model and growth is a long-run process. 
B)  it is a short-run model and growth is a short-run process. 
C)  it is a long-run model and growth is a long-run process. 
D)  it is a long-run model and growth is a short-run process.

Question 15

The four growth models discussed in this chapter are:

Accepted Answer

A)  the Smithian model, the classical model, the Marxist model, and the Keynesian model. 
B)  the Harrod model, the Domar model, the Scumpeter model, and the Keynesian model. 
C)  the Smithian model, the classical model, the Solow model, and the Harrod-Domar model. 
D)  the Lucas model, the Smithian model, the Keynesian model, and the Romer model. 
A)  the Smithian model, the classical model, the Marxist model, and the Keynesian model. 
B)  the Harrod model, the Domar model, the Scumpeter model, and the Keynesian model. 
C)  the Smithian model, the classical model, the Solow model, and the Harrod-Domar model. 
D)  the Lucas model, the Smithian model, the Keynesian model, and the Romer model.

Question 16

The fact that we still do not know everything that scientists have investigated implies that:

Accepted Answer

A)  the scientific method is not infallible. 
B)  science can only provide us with a partial picture of reality. 
C)  science must be supplemented by other methods of investigation. 
D)  we need to pursue much more scientific research. 
A)  the scientific method is not infallible. 
B)  science can only provide us with a partial picture of reality. 
C)  science must be supplemented by other methods of investigation. 
D)  we need to pursue much more scientific research.

Question 17

Harrod and Domar developed their model of economic growth:

Accepted Answer

A)  in the 18th century. 
B)  in the early 20th century, before Keynes invented macroeconomics. 
C)  in the 19th century as a reaction to the dismal model of diminishing returns. 
D)  around the time of World War II. 
E)  while working at the World Bank in the early 1990s. 
A)  in the 18th century. 
B)  in the early 20th century, before Keynes invented macroeconomics. 
C)  in the 19th century as a reaction to the dismal model of diminishing returns. 
D)  around the time of World War II. 
E)  while working at the World Bank in the early 1990s.

Question 18

An economic model can be presented using:

Accepted Answer

A)  words. 
B)  graphs. 
C)  mathematics. 
D)  Any of the above. 
E)  None of the above. 
A)  words. 
B)  graphs. 
C)  mathematics. 
D)  Any of the above. 
E)  None of the above.

Question 19

In the Solow model with a positive rate of population growth n and technological progress z, the steady state level of total real output Y grows at the rate:

Accepted Answer

A)  n. 
B)  zero. 
C)  z. 
D)  n + z. 
A)  n. 
B)  zero. 
C)  z. 
D)  n + z.

Question 20

The Sung dynasty of China is known for:

Accepted Answer

A)  the integration of its vast national territory into a prosperous economy. 
B)  its economic decline. 
C)  the building of a system of windmills and dikes to increase its national territory. 
D)  its defeat by the communists in 1948. 
A)  the integration of its vast national territory into a prosperous economy. 
B)  its economic decline. 
C)  the building of a system of windmills and dikes to increase its national territory. 
D)  its defeat by the communists in 1948.

A characteristic of a scientific theory is that it is:

In the Solow model, the transition from one steady state to another is referred to as?

In the Solow model with a positive rate of population growth n and technological progress z, the steady state level of real output per effective worker y grows at the rate:

Labor-augmenting technological progress, denoted as E in the textbook, enters the production function as follows:

According to Paul Krugman, the rapid growth rates of the Asian Tigers are

The holistic approach to seeking knowledge recognizes that:

In the Solow model, the transition from one steady state to another is referred to as:

If the equation Y = F(K,L) represents a constant returns to scale production function, then for any positive constant c the following must also hold:

Early 19^th century economists like Thomas Malthus and John Stuart Mill claimed that:

The Harrod-Domar model predicts that if the saving rate is 10% and the capital output ratio is a constant equal to 2, then the economy will grow at a rate of:

The scientific method consists of a series of well defined steps that must be followed. Included among these steps is (are):

The scientist Richard Dawkins refers to the process of breaking down a complex phenomenon into components in order to provide a consistent explanation of phenomena that operate on many levels as:

Under the assumptions that (1) labor-augmenting technological progress is equal to z and (2) the labor force grows at the rate of n, the Solow model predicts that in the steady state:

The Harrod-Domar growth model has lost favor among economists because, fundamentally:

The four growth models discussed in this chapter are:

The fact that we still do not know everything that scientists have investigated implies that:

Harrod and Domar developed their model of economic growth:

An economic model can be presented using:

In the Solow model with a positive rate of population growth n and technological progress z, the steady state level of total real output Y grows at the rate:

The Sung dynasty of China is known for:

The Welfare Gains From Trade

Trade and Growth: the Empirical Evidence

Overcoming Diminishing Returns: Technology As an Externality

Technological Progress As Creative Destruction

International Trade and Technological Progress

Multi-Sector Models and International Trade

International Trade and Technology Transfers

Restating the Case for Free Trade

Filters

Exam 3: International Trade and Factor Accumulation

A characteristic of a scientific theory is that it is:

In the Solow model, the transition from one steady state to another is referred to as?

In the Solow model with a positive rate of population growth n and technological progress z, the steady state level of real output per effective worker y grows at the rate:

Labor-augmenting technological progress, denoted as E in the textbook, enters the production function as follows:

According to Paul Krugman, the rapid growth rates of the Asian Tigers are

The holistic approach to seeking knowledge recognizes that:

In the Solow model, the transition from one steady state to another is referred to as:

If the equation Y = F(K,L) represents a constant returns to scale production function, then for any positive constant c the following must also hold:

Early 19th century economists like Thomas Malthus and John Stuart Mill claimed that:

The Harrod-Domar model predicts that if the saving rate is 10% and the capital output ratio is a constant equal to 2, then the economy will grow at a rate of:

The scientific method consists of a series of well defined steps that must be followed. Included among these steps is (are):

The scientist Richard Dawkins refers to the process of breaking down a complex phenomenon into components in order to provide a consistent explanation of phenomena that operate on many levels as:

Under the assumptions that (1) labor-augmenting technological progress is equal to z and (2) the labor force grows at the rate of n, the Solow model predicts that in the steady state:

The Harrod-Domar growth model has lost favor among economists because, fundamentally:

The four growth models discussed in this chapter are:

The fact that we still do not know everything that scientists have investigated implies that:

Harrod and Domar developed their model of economic growth:

An economic model can be presented using:

In the Solow model with a positive rate of population growth n and technological progress z, the steady state level of total real output Y grows at the rate:

The Sung dynasty of China is known for:

The Welfare Gains From Trade

Trade and Growth: the Empirical Evidence

Overcoming Diminishing Returns: Technology As an Externality

Technological Progress As Creative Destruction

International Trade and Technological Progress

Multi-Sector Models and International Trade

International Trade and Technology Transfers

Restating the Case for Free Trade

Filters

Early 19^th century economists like Thomas Malthus and John Stuart Mill claimed that: