Question 1

In the Malthusian model,when z increases,initially consumption

Accepted Answer

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

Question 2

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

Accepted Answer

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

Question 3

In the Malthusian model,the steady state effects of an increase in z are to

Accepted Answer

A)   decrease the quantity of land per worker, increase the population, and leave consumption per worker unchanged.
B)   increase the quantity of land per worker, increase the population, and leave consumption per worker unchanged.
C)   decrease the quantity of land per worker, increase the population, and increase consumption per worker
D)   decrease the quantity of land per worker, decrease the population, and leave consumption per worker unchanged
E)   shift the production function upwards, but leave the steady state unchanged.F) C) and D)
G) A) and E)

Question 4

One plausible explanation of the Canadian productivity slowdown starting in 1973 is that it was the result of the time needed to adapt to new technology.This explanation would require that

Accepted Answer

A)   workers withdraw from the labor force to learn about the new technology.
B)   a large number of new entrants be attracted to the labor force.
C)   managers be reluctant to adopt changes.
D)   workers time at their jobs be diverted from production to learning the technology.
E)   little time was spent to learn the new technology.F) B) and E)
G) B) and D)

Question 5

The Solow growth model predicts that a country's standard of living can continue to increase in the long run only if

Accepted Answer

A)   there is sustained increases in the capital stock.
B)   there is sustained increases in the population.
C)   there is sustained increases in the labour force.
D)   there is sustained increases in government spending.
E)   there is sustained increases in total factor productivity.F) A) and B)
G) A) and C)

Question 6

The Malthusian model performs poorly in explaining economic growth after the

Accepted Answer

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

Question 7

In Solow's model of economic growth,suppose that s represents the savings rate,z represents total factor productivity,k represents the level of capital per worker,and f(k) represents the per worker production function.Also suppose that n represents the population growth rate and d represents the depreciation rate of capital.The equilibrium level of capital per worker,k*,will satisfy the equation:

Accepted Answer

A)   
B)   
C)   
D)   
E)   F) A) and B)
G) B) and E)

Question 8

Which of the following is not different between the Solow and Malthusian models?

Accepted Answer

A)   The production function has decreasing marginal returns.
B)   Households save.
C)   Population growth is exogenous.
D)   There is capital accumulation.
E)   Advances in technology can sustain economic growth.F) None of the above
G) C) and D)

Question 9

When capital is accumulated at the rate that maximizes consumption per worker in the steady state,the marginal product of capital is equal to the

Accepted Answer

A)   savings rate plus the population growth rate.
B)   population growth rate plus the depreciation rate.
C)   depreciation rate plus the savings rate.
D)   savings rate divided by the marginal product of labour.
E)   consumption per worker plus the population growth rate.F) A) and B)
G) B) and E)

Question 10

The Golden Rule Quantity of capital per worker maximizes the steady-state level of

Accepted Answer

A)   output per worker.
B)   capital per worker.
C)   consumption per worker.
D)   investment per worker.
E)   savings per worker.F) None of the above
G) A) and B)

Question 11

In an exogenous growth model,growth is caused by

Accepted Answer

A)   capital accumulation.
B)   government policies.
C)   human capital accumulation.
D)   forces that are not explained by the model itself.
E)   total factor productivity.F) A) and B)
G) All of the above

Question 12

Recent evidence suggests that output per worker is

Accepted Answer

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

Question 13

Human capital is

Accepted Answer

A)   the level of capital per-capita.
B)   a measure of the effects of capital on labour productivity.
C)   a measure of the stock of skills and education a person possesses.
D)   the most important factor explaining differences in incomes across countries.
E)   not a factor that can explain differences in incomes across countries.F) A) and E)
G) B) and C)

Question 14

The high growth rate in aggregate output in Canada during 1991-2001 was due to

Accepted Answer

A)   an increase in the capital stock.
B)   an increase in the labour force.
C)   an increase in total factor productivity growth.
D)   the higher prices of energy.
E)   strong growth in the service sector.F) B) and C)
G) A) and E)

Question 15

On average,from 1960-2000,real GDP in Canada grew around

Accepted Answer

A)   2.3%.
B)   0.6%.
C)   8.7%.
D)   4.1%.
E)   -1.2%.F) A) and C)
G) D) and E)

Question 16

Total factor productivity can be influenced by

Accepted Answer

A)   new inventions.
B)   less capital.
C)   more labour.
D)   increases in the price of inputs.
E)   consumption per worker.F) B) and C)
G) A) and E)

Question 17

Recent evidence suggests that the level of output per worker is

Accepted Answer

A)   positively correlated with the growth rate in output per worker.
B)   negatively correlated with the rate of population growth.
C)   positively correlated with the rate of population growth.
D)   negatively correlated with growth rate in output per worker.
E)   not correlated with the growth rate in output per worker.F) A) and D)
G) B) and E)

Question 18

A pessimistic long run Malthusian result is

Accepted Answer

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

Question 19

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

Accepted Answer

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

Question 20

The Solow model suggests that,to improve a country's standard of living in the long run,

Accepted Answer

A)   people have to be more educated.
B)   more natural resources must be found.
C)   production technology must become more efficient.
D)   standards of living must increase.
E)   total factor productivity must decline.F) B) and E)
G) None of the above C

Exam 7: Economic Growth: Malthus and Solow

In the Malthusian model,when z increases,initially consumption

Correct Answer
verified
C

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

Correct Answer
verified

In the Malthusian model,the steady state effects of an increase in z are to

Correct Answer
verified

One plausible explanation of the Canadian productivity slowdown starting in 1973 is that it was the result of the time needed to adapt to new technology.This explanation would require that

Correct Answer
verified

The Solow growth model predicts that a country's standard of living can continue to increase in the long run only if

Correct Answer
verified

The Malthusian model performs poorly in explaining economic growth after the

Correct Answer
verified
C

Correct Answer
verified

Which of the following is not different between the Solow and Malthusian models?

Correct Answer
verified

When capital is accumulated at the rate that maximizes consumption per worker in the steady state,the marginal product of capital is equal to the

Correct Answer
verified

The Golden Rule Quantity of capital per worker maximizes the steady-state level of

Correct Answer
verified

In an exogenous growth model,growth is caused by

Correct Answer
verified

Recent evidence suggests that output per worker is

Correct Answer
verified

Human capital is

Correct Answer
verified

The high growth rate in aggregate output in Canada during 1991-2001 was due to

Correct Answer
verified

On average,from 1960-2000,real GDP in Canada grew around

Correct Answer
verified

Total factor productivity can be influenced by

Correct Answer
verified

Recent evidence suggests that the level of output per worker is

Correct Answer
verified

A pessimistic long run Malthusian result is

Correct Answer
verified

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

Correct Answer
verified

The Solow model suggests that,to improve a country's standard of living in the long run,

Correct Answer
verified
C

Exam 7: Economic Growth: Malthus and Solow

In the Malthusian model,when z increases,initially consumption

Correct AnswerverifiedC

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

Correct AnswerverifiedShow Answer

In the Malthusian model,the steady state effects of an increase in z are to

Correct AnswerverifiedShow Answer

One plausible explanation of the Canadian productivity slowdown starting in 1973 is that it was the result of the time needed to adapt to new technology.This explanation would require that

Correct AnswerverifiedShow Answer

The Solow growth model predicts that a country's standard of living can continue to increase in the long run only if

Correct AnswerverifiedShow Answer

The Malthusian model performs poorly in explaining economic growth after the

Correct AnswerverifiedC

Correct AnswerverifiedShow Answer

Which of the following is not different between the Solow and Malthusian models?

Correct AnswerverifiedShow Answer

When capital is accumulated at the rate that maximizes consumption per worker in the steady state,the marginal product of capital is equal to the

Correct AnswerverifiedShow Answer

The Golden Rule Quantity of capital per worker maximizes the steady-state level of

Correct AnswerverifiedShow Answer

In an exogenous growth model,growth is caused by

Correct AnswerverifiedShow Answer

Recent evidence suggests that output per worker is

Correct AnswerverifiedShow Answer

Human capital is

Correct AnswerverifiedShow Answer

The high growth rate in aggregate output in Canada during 1991-2001 was due to

Correct AnswerverifiedShow Answer

On average,from 1960-2000,real GDP in Canada grew around

Correct AnswerverifiedShow Answer

Total factor productivity can be influenced by

Correct AnswerverifiedShow Answer

Recent evidence suggests that the level of output per worker is

Correct AnswerverifiedShow Answer

A pessimistic long run Malthusian result is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The Solow model suggests that,to improve a country's standard of living in the long run,

Correct AnswerverifiedC

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C

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C

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C