Enter your answer to each of the questions in the blank to the left of the question. Be sure to use lowercase letters only!
|
1. Which of the following is the term we use to describe the expansion of a country's potential GDP?
a. economic growth
b. technological change
c. productivity growth
d. total factor productivity
| |
|
2. Economic growth can be shown as an _______ shift in the country's production possibilities frontier.
a. inward
b. outward
c. leftward
d. rightward
|
|
3. Which of the following is not a factor or "wheel" of economic growth?
a. natural resources
b. capital formation
c. technology
d. money
|
|
4. Which of the following is the term used to describe the ratio of output to a weighted average of inputs?
a. economic growth
b. technological change
c. productivity
d. none of the above
|
|
5. In the formula Q=AF(K,L,R), A refers to _______.
a. economic growth
b. technology
c. productivity growth
d. total factor productivity
|
|
6. Which of the following refers to changes in the processes of production or the introduction of new products or services?
a. economic growth
b. technological change
c. productivity growth
d. total factor productivity
|
|
7. The major difference between Smith's view of economic growth and Malthus' view of economic growth is that:
a. Smith and Malthus both assumed that land was unlimited, but Malthus thought that some land was not able to be used and therefore a larger population would starve.
b. Smith assumed that land was unlimited and Malthus assumed that land was limited. Therefore, the PPF in Smith's model shift outward proportionally along both axes where Malthus' PPF shifts out more on the axis representing the nonfood good.
c. Smith assumed that the population could not grow whereas Malthus assumed that the population would grow and would eventually starve itself to death.
d. none of the above.
|
|
8. The neoclassical model of economic growth:
a. was originally conceived of by Robert Solow.
b. assumes that there is a single homogenous good produced by capital and labor.
c. both a and b.
d. neither a nor b.
|
|
9. What do we call the situation where capital grows faster than the labor force?
a. economic growth
b. technological change
c. productivity growth
d. capital deepening
|
|
10. If the capital-labor ratio _______ in the neoclassical growth model, output per worker will _______.
a. increases; increase
b. increases; decrease
c. decreases; increase
d. decreases; stay the same.
|
|
11. In the neoclassical growth model, the economy will eventually reach a steady state where:
a. capital deepening will stop.
b. real wages stop growing.
c. real interest rates stop growing.
d. all of the above.
|
|
12. New growth theory focuses on:
a. finding out why Malthus was wrong.
b. explaining the kinds of technological change and how they affect economic growth.
c. changes in the capital-labor ratio and how those changes affect economic growth.
d. none of the above.
|
|
13. Which of the following is not a valid trend in economic growth?
a. Through time we have seen much capital deepening.
b. Real interest rates have been gradually rising throughout the 20th century.
c. Since the 1980's the national savings rate in the United States has been falling sharply.
d. Since 1900, there has been a strong upward trend in real average hourly wages in the United States.
|
|
14. Which of the following is the growth of output less the growth of the weighted sum of all inputs?
a. economic growth
b. technological change
c. productivity growth
d. total factor productivity
|
|
15. Productivity growth in the United States,
a. increased during the 1970s but fell dramatically in the 1990s.
b. has been falling since the 1970s.
c. fell in the 1970s, but has been making an upturn since the late 1990s.
d. none of the above.
|
