Question 1

What are the positive and negative effects of patents on the creation of new ideas?

Accepted Answer

Patents grant exclusive rights to all pr

Question 2

Cutting-edge growth is growth due to:

Accepted Answer

A)  capital accumulation. 
B)  new ideas. 
C)  new human capital. 
D)  improving the organization of existing resources. 
A)  capital accumulation. 
B)  new ideas. 
C)  new human capital. 
D)  improving the organization of existing resources.

Question 3

In the context of the Solow model (with no growth in labor,education,or technology),explain how an increase in the investment rate will affect an economy's steady state output level and its growth rate.

Accepted Answer

An increase in the investment rate will

Question 4

Increases in productivity cause the:

Accepted Answer

A)  depreciation function to shift downward. 
B)  production function to shift downward. 
C)  production function to shift upward. 
D)  investment curve to shift downward. 
A)  depreciation function to shift downward. 
B)  production function to shift downward. 
C)  production function to shift upward. 
D)  investment curve to shift downward.

Question 5

Conditional convergence refers to the condition that among countries with similar steady states:

Accepted Answer

A)  a country with a higher output level tends to grow more rapidly. 
B)  a country with a higher output level tends to grow more slowly. 
C)  all countries grow at the same rate regardless of their initial output levels. 
D)  whether one country's output converges to that of another country depends on their geographical proximity. 
A)  a country with a higher output level tends to grow more rapidly. 
B)  a country with a higher output level tends to grow more slowly. 
C)  all countries grow at the same rate regardless of their initial output levels. 
D)  whether one country's output converges to that of another country depends on their geographical proximity.

Question 6

According to the Solow model,countries with higher savings rates have higher levels of:

Accepted Answer

A)  investment. 
B)  output. 
C)  both investment and output. 
D)  neither investment nor output. 
A)  investment. 
B)  output. 
C)  both investment and output. 
D)  neither investment nor output.

Question 7

A production function can be used to express the relationship between _____ and GDP.

Accepted Answer

A)  GDP per capita 
B)  productivity 
C)  the factors of production 
D)  an economy's growth rate 
A)  GDP per capita 
B)  productivity 
C)  the factors of production 
D)  an economy's growth rate

Question 8

In the Solow production function,an increase in the term "A" refers to an increase in:

Accepted Answer

A)  productivity. 
B)  the capital stock. 
C)  the rate of depreciation. 
D)  investment. 
A)  productivity. 
B)  the capital stock. 
C)  the rate of depreciation. 
D)  investment.

Question 9

Which statement is consistent with the predictions of the simple Solow model with no technological advancement?

Accepted Answer

A)  In the long run,economic growth is zero. 
B)  In the long run,a higher capital stock raises economic growth. 
C)  In the long run,rich countries grow faster than poor countries. 
D)  In the long run,a higher saving rate reduces economic growth. 
A)  In the long run,economic growth is zero. 
B)  In the long run,a higher capital stock raises economic growth. 
C)  In the long run,rich countries grow faster than poor countries. 
D)  In the long run,a higher saving rate reduces economic growth.

Question 10

The key to escaping the "iron logic" of diminishing returns in the Solow model is:

Accepted Answer

A)  investment in physical capital. 
B)  education and training to build human capital. 
C)  new ideas. 
D)  foreign investment. 
A)  investment in physical capital. 
B)  education and training to build human capital. 
C)  new ideas. 
D)  foreign investment.

Question 11

-(Figure: The Solow Model)If the production function shifts from Y1 to Y2 in the accompanying graph of the Solow model,then:

Accepted Answer

A)  no growth will occur. 
B)  growth will occur from capital accumulation only. 
C)  growth will occur from better ideas only. 
D)  growth from both capital accumulation and better ideas will occur. 
A)  no growth will occur. 
B)  growth will occur from capital accumulation only. 
C)  growth will occur from better ideas only. 
D)  growth from both capital accumulation and better ideas will occur.

Question 12

If a country is currently to the left of its steady-state capital stock in the Solow model,growth in output will follow as a result of capital accumulation.

Accepted Answer

A) True 
 B)False

Question 13

Catching-up growth occurs primarily through capital accumulation and the adoption of simple ideas that already exist.

Accepted Answer

A) True 
 B)False

Question 14

If the investment rate (F1F1F1S1F1F1F10)decreases in the Solow model,other things held constant,then capital growth:

Accepted Answer

A)  decreases. 
B)  remains constant. 
C)  increases. 
D)  changes indeterminately. 
A)  decreases. 
B)  remains constant. 
C)  increases. 
D)  changes indeterminately.

Question 15

-(Figure: The Solow Model)If the production function shifts from Y1 to Y2 in the accompanying graph of the Solow model,then:

Accepted Answer

A)  the steady state will remain at K1. 
B)  a new steady state will occur at K2. 
C)  the steady state will move to K2 and then return to K1 in the long run. 
D)  a new steady state will occur somewhere between K1 and K2. 
A)  the steady state will remain at K1. 
B)  a new steady state will occur at K2. 
C)  the steady state will move to K2 and then return to K1 in the long run. 
D)  a new steady state will occur somewhere between K1 and K2.

What are the positive and negative effects of patents on the creation of new ideas?

Cutting-edge growth is growth due to:

In the context of the Solow model (with no growth in labor,education,or technology),explain how an increase in the investment rate will affect an economy's steady state output level and its growth rate.

Increases in productivity cause the:

Conditional convergence refers to the condition that among countries with similar steady states:

According to the Solow model,countries with higher savings rates have higher levels of:

A production function can be used to express the relationship between _____ and GDP.

In the Solow production function,an increase in the term "A" refers to an increase in:

Which statement is consistent with the predictions of the simple Solow model with no technological advancement?

The key to escaping the "iron logic" of diminishing returns in the Solow model is:

-(Figure: The Solow Model)If the production function shifts from Y₁ to Y₂ in the accompanying graph of the Solow model,then:

If a country is currently to the left of its steady-state capital stock in the Solow model,growth in output will follow as a result of capital accumulation.

Catching-up growth occurs primarily through capital accumulation and the adoption of simple ideas that already exist.

If the investment rate ()decreases in the Solow model,other things held constant,then capital growth:

-(Figure: The Solow Model)If the production function shifts from Y₁ to Y₂ in the accompanying graph of the Solow model,then:

The Big Ideas

The Power of Trade

Supply and Demand

Equilibrium- How Supply and Demand

Price Ceilings and Floors

GDP and the Measurement of Progress

The Wealth of Nations and Economic Growth

Saving,investment,and the Financial System

Stock Markets and Personal Finance

Unemployment and Labor Force Participation

Inflation and the Quantity Theory of Money

Business Fluctuations

Transmission and Amplification Mechanisms

The Federal Reserve System

Monetary Policy

The Federal Budget- Taxes and Spending

Fiscal Policy

International Trade

International Finance

Political Economy and Public Choice

Filters

Exam 8: Growth,capital Accumulation

What are the positive and negative effects of patents on the creation of new ideas?

Cutting-edge growth is growth due to:

In the context of the Solow model (with no growth in labor,education,or technology),explain how an increase in the investment rate will affect an economy's steady state output level and its growth rate.

Increases in productivity cause the:

Conditional convergence refers to the condition that among countries with similar steady states:

According to the Solow model,countries with higher savings rates have higher levels of:

A production function can be used to express the relationship between _____ and GDP.

In the Solow production function,an increase in the term "A" refers to an increase in:

Which statement is consistent with the predictions of the simple Solow model with no technological advancement?

The key to escaping the "iron logic" of diminishing returns in the Solow model is:

-(Figure: The Solow Model)If the production function shifts from Y1 to Y2 in the accompanying graph of the Solow model,then:

If a country is currently to the left of its steady-state capital stock in the Solow model,growth in output will follow as a result of capital accumulation.

Catching-up growth occurs primarily through capital accumulation and the adoption of simple ideas that already exist.

If the investment rate ()decreases in the Solow model,other things held constant,then capital growth:

-(Figure: The Solow Model)If the production function shifts from Y1 to Y2 in the accompanying graph of the Solow model,then:

The Big Ideas

The Power of Trade

Supply and Demand

Equilibrium- How Supply and Demand

Price Ceilings and Floors

GDP and the Measurement of Progress

The Wealth of Nations and Economic Growth

Saving,investment,and the Financial System

Stock Markets and Personal Finance

Unemployment and Labor Force Participation

Inflation and the Quantity Theory of Money

Business Fluctuations

Transmission and Amplification Mechanisms

The Federal Reserve System

Monetary Policy

The Federal Budget- Taxes and Spending

Fiscal Policy

International Trade

International Finance

Political Economy and Public Choice

Filters

-(Figure: The Solow Model)If the production function shifts from Y₁ to Y₂ in the accompanying graph of the Solow model,then:

-(Figure: The Solow Model)If the production function shifts from Y₁ to Y₂ in the accompanying graph of the Solow model,then: