Question 1

According to the endogenous growth model with human capital,what can we say about countries with more efficient schools?

Accepted Answer

A)  They are richer. 
B)  They are richer and grow faster. 
C)  They are richer and grow more slowly. 
D)  They grow faster. 
A)  They are richer. 
B)  They are richer and grow faster. 
C)  They are richer and grow more slowly. 
D)  They grow faster.

Question 2

According to Solow's exogenous growth theory,what happens to a country at steady state that suffered extensive capital destruction due to a war or climate event?

Accepted Answer

A)  It will stay poor forever. 
B)  It will grow back to be richer than before. 
C)  It will get back to its original status. 
D)  Anything can happen. 
A)  It will stay poor forever. 
B)  It will grow back to be richer than before. 
C)  It will get back to its original status. 
D)  Anything can happen.

Question 3

Barriers to Riches,by S. Parente and E. Prescott,emphasizes the importance of

Accepted Answer

A)  barriers to technological adoption. 
B)  barriers to the development of natural resources. 
C)  public education. 
D)  endogenous growth. 
A)  barriers to technological adoption. 
B)  barriers to the development of natural resources. 
C)  public education. 
D)  endogenous growth.

Question 4

Which statement is correct?

Accepted Answer

A)  To attain a permanently higher rate of growth in GDP per capita, a nation has to sacrifice something in the present. 
B)  A higher growth rate in GDP per capita is always preferable. 
C)  It is easy for poor countries to become rich. 
D)  If the human capital accumulation technology is more efficient, then the growth rate of per capita output falls. 
A)  To attain a permanently higher rate of growth in GDP per capita, a nation has to sacrifice something in the present. 
B)  A higher growth rate in GDP per capita is always preferable. 
C)  It is easy for poor countries to become rich. 
D)  If the human capital accumulation technology is more efficient, then the growth rate of per capita output falls.

Question 5

In the Solow growth model,countries with identical total factor productivities,identical labor force growth rates,and identical savings rates

Accepted Answer

A)  always have identical levels of capital per worker and output per worker. 
B)  in equilibrium, have identical levels of capital per worker and output per worker. 
C)  in equilibrium, have identical levels of capital per worker but not necessarily identical levels of output per worker. 
D)  in equilibrium, have identical levels of output per worker but not necessarily identical levels of capital per worker. 
A)  always have identical levels of capital per worker and output per worker. 
B)  in equilibrium, have identical levels of capital per worker and output per worker. 
C)  in equilibrium, have identical levels of capital per worker but not necessarily identical levels of output per worker. 
D)  in equilibrium, have identical levels of output per worker but not necessarily identical levels of capital per worker.

Question 6

If there are human capital externalities,then

Accepted Answer

A)  human capital should be taxed. 
B)  convergence in per capita incomes occurs. 
C)  differences in human capital across countries can persist. 
D)  pollution is a problem. 
A)  human capital should be taxed. 
B)  convergence in per capita incomes occurs. 
C)  differences in human capital across countries can persist. 
D)  pollution is a problem.

Question 7

Paul Romer argues that a key feature of knowledge is

Accepted Answer

A)  divisibility. 
B)  private ownership. 
C)  nonrivalry. 
D)  durability. 
A)  divisibility. 
B)  private ownership. 
C)  nonrivalry. 
D)  durability.

Question 8

In the endogenous growth model with human capital,spending more time on education

Accepted Answer

A)  decreases the growth rate and increases output in the short term. 
B)  decreases the growth rate and decreases output in the short term. 
C)  increases the growth rate and increases output in the short term. 
D)  increases the growth rate and decreases output in the short term. 
A)  decreases the growth rate and increases output in the short term. 
B)  decreases the growth rate and decreases output in the short term. 
C)  increases the growth rate and increases output in the short term. 
D)  increases the growth rate and decreases output in the short term.

Question 9

The importance of barriers to the adoption of technologies is supported by research by

Accepted Answer

A)  P. Romer. 
B)  R. Lucas. 
C)  S. Parente and E. Prescott. 
D)  G. Glomm and B. Ravikumar. 
A)  P. Romer. 
B)  R. Lucas. 
C)  S. Parente and E. Prescott. 
D)  G. Glomm and B. Ravikumar.

Question 10

In the endogenous growth model,workers divide their time between market work and

Accepted Answer

A)  accumulating physical capital. 
B)  accumulating human capital. 
C)  trying to invent new production processes. 
D)  work at home. 
A)  accumulating physical capital. 
B)  accumulating human capital. 
C)  trying to invent new production processes. 
D)  work at home.

Question 11

In the endogenous growth model presented in the text,an increase in the efficiency of human capital accumulation

Accepted Answer

A)  increases the growth rate of human capital and increases the growth rate of output. 
B)  increases the growth rate of human capital and decreases the growth rate of output. 
C)  decreases the growth rate of human capital and increases the growth rate of output. 
D)  decreases the growth rate of human capital and decreases the growth rate of output. 
A)  increases the growth rate of human capital and increases the growth rate of output. 
B)  increases the growth rate of human capital and decreases the growth rate of output. 
C)  decreases the growth rate of human capital and increases the growth rate of output. 
D)  decreases the growth rate of human capital and decreases the growth rate of output.

Question 12

Endogenous growth theory is about

Accepted Answer

A)  welfare of indigenous people. 
B)  explaining growth. 
C)  studying education. 
D)  studying fertility choices. 
A)  welfare of indigenous people. 
B)  explaining growth. 
C)  studying education. 
D)  studying fertility choices.

Question 13

Suppose a country is much richer than the others in the Solow growth model. What happens in the long run?

Accepted Answer

A)  The other countries catch up to the rich one. 
B)  The rich country grows the fastest. 
C)  The rich country becomes poorer than the others. 
D)  Nothing. 
A)  The other countries catch up to the rich one. 
B)  The rich country grows the fastest. 
C)  The rich country becomes poorer than the others. 
D)  Nothing.

Question 14

Which of the following is a way to obtain endogenous growth:

Accepted Answer

A)  inflation. 
B)  human capital accumulation. 
C)  physical capital accumulation. 
D)  population growth. 
A)  inflation. 
B)  human capital accumulation. 
C)  physical capital accumulation. 
D)  population growth.

Question 15

Human capital is

Accepted Answer

A)  knowledge found in books. 
B)  knowledge found in people. 
C)  wealth. 
D)  machines owned by people. 
A)  knowledge found in books. 
B)  knowledge found in people. 
C)  wealth. 
D)  machines owned by people.

Question 16

Suppose a poor economy inches towards the steady state in Solow's exogenous growth model. What happens?

Accepted Answer

A)  Consumption per capita decreases. 
B)  Saving per capita decreases. 
C)  The depreciation rate increases. 
D)  The growth rate of output decreases. 
A)  Consumption per capita decreases. 
B)  Saving per capita decreases. 
C)  The depreciation rate increases. 
D)  The growth rate of output decreases.

Question 17

What characteristic do human and physical capital share?

Accepted Answer

A)  Both are controlled by the government. 
B)  Current costs are incurred for future benefits. 
C)  Their growth depends crucially on the growth of total factor productivity. 
D)  The use of both exhibits rivalry. 
A)  Both are controlled by the government. 
B)  Current costs are incurred for future benefits. 
C)  Their growth depends crucially on the growth of total factor productivity. 
D)  The use of both exhibits rivalry.

Question 18

In the endogenous growth model presented in the text,

Accepted Answer

A)  consumption grows faster than human capital. 
B)  human capital grows faster than consumption. 
C)  both consumption and human capital grow at the same rate. 
D)  neither consumption nor human capital grows in the steady state. 
A)  consumption grows faster than human capital. 
B)  human capital grows faster than consumption. 
C)  both consumption and human capital grow at the same rate. 
D)  neither consumption nor human capital grows in the steady state.

Question 19

Human capital is knowledge in

Accepted Answer

A)  books. 
B)  people. 
C)  firms. 
D)  government. 
A)  books. 
B)  people. 
C)  firms. 
D)  government.

Question 20

What characteristic do both human and physical capital share?

Accepted Answer

A)  Both are controlled by the government. 
B)  Current costs are incurred for future benefits. 
C)  The use of both exhibits rivalry. 
D)  They can easily be transferred to new ownership. 
A)  Both are controlled by the government. 
B)  Current costs are incurred for future benefits. 
C)  The use of both exhibits rivalry. 
D)  They can easily be transferred to new ownership.

According to the endogenous growth model with human capital,what can we say about countries with more efficient schools?

According to Solow's exogenous growth theory,what happens to a country at steady state that suffered extensive capital destruction due to a war or climate event?

Barriers to Riches,by S. Parente and E. Prescott,emphasizes the importance of

Which statement is correct?

In the Solow growth model,countries with identical total factor productivities,identical labor force growth rates,and identical savings rates

If there are human capital externalities,then

Paul Romer argues that a key feature of knowledge is

In the endogenous growth model with human capital,spending more time on education

The importance of barriers to the adoption of technologies is supported by research by

In the endogenous growth model,workers divide their time between market work and

In the endogenous growth model presented in the text,an increase in the efficiency of human capital accumulation

Endogenous growth theory is about

Suppose a country is much richer than the others in the Solow growth model. What happens in the long run?

Which of the following is a way to obtain endogenous growth:

Human capital is

Suppose a poor economy inches towards the steady state in Solow's exogenous growth model. What happens?

What characteristic do human and physical capital share?

In the endogenous growth model presented in the text,

Human capital is knowledge in

What characteristic do both human and physical capital share?

Introduction

Measurement

Business Cycle Measurement

Consumer and Firm Behavior: The Work-Leisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Economic Growth: Malthus and Solow

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

Money, Banking, Prices, and Monetary Policy

Business Cycle Models with Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking

Inflation, the Phillips Curve, and Central Bank Commitment

Filters

Exam 8: Income Disparity Among Countries and Endogenous Growth

According to the endogenous growth model with human capital,what can we say about countries with more efficient schools?

According to Solow's exogenous growth theory,what happens to a country at steady state that suffered extensive capital destruction due to a war or climate event?

Barriers to Riches,by S. Parente and E. Prescott,emphasizes the importance of

Which statement is correct?

In the Solow growth model,countries with identical total factor productivities,identical labor force growth rates,and identical savings rates

If there are human capital externalities,then

Paul Romer argues that a key feature of knowledge is

In the endogenous growth model with human capital,spending more time on education

The importance of barriers to the adoption of technologies is supported by research by

In the endogenous growth model,workers divide their time between market work and

In the endogenous growth model presented in the text,an increase in the efficiency of human capital accumulation

Endogenous growth theory is about

Suppose a country is much richer than the others in the Solow growth model. What happens in the long run?

Which of the following is a way to obtain endogenous growth:

Human capital is

Suppose a poor economy inches towards the steady state in Solow's exogenous growth model. What happens?

What characteristic do human and physical capital share?

In the endogenous growth model presented in the text,

Human capital is knowledge in

What characteristic do both human and physical capital share?

Introduction

Measurement

Business Cycle Measurement

Consumer and Firm Behavior: The Work-Leisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Economic Growth: Malthus and Solow

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

Money, Banking, Prices, and Monetary Policy

Business Cycle Models with Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking

Inflation, the Phillips Curve, and Central Bank Commitment

Filters