Econ 3020: Chapter 7

In more modern times as opposed to the times of Malthus, higher standards of living appear to Question options: decrease death rates and increase birth rates. decrease death rates and also decrease birth rates. decrease death rates and have no effect on birth rates. have had effects on neither death rates nor birth rates.

decrease death rates and also decrease birth rates.

Which of the following increases total factor productivity? Question options: investment in machinery a harsh winter better access to credit new production procedures

new production procedures

The Malthusian model performs poorly in explaining economic growth after the Question options: French Revolution. American Revolution. Industrial Revolution. Bio-technology Revolution.

Industrial Revolution.

A steady state is Question options: a temporary equilibrium. a Pareto Optimum. a long-run equilibrium. an economy with ongoing fluctuations.

a long-run equilibrium.

In a Malthusian world, what would improve the standard of living permanently? Question options: a war a new medical drug birth control democracy

birth control

The Solow model emphasizes the role of which of the following factors of production? Question options: land labor capital natural resources

capital

In the Malthusian model, an improvement in the technology of growing food is likely to Question options: increase the equilibrium size of the population and increase the equilibrium level of consumption per worker. increase the equilibrium size of the population and decrease the equilibrium level of consumption per worker. increase the equilibrium size of the population and have no effect on the equilibrium level of consumption per worker. have no effect on the equilibrium size of the population and increase the equilibrium level of consumption per worker.

increase the equilibrium size of the population and have no effect on the equilibrium level of consumption per worker.

Recent evidence suggests that output per worker is Question options: positively related to both the rate of investment and to the rate of population growth. positively related to the rate of investment and negatively related to the rate of population growth. negatively related to the rate of investment and positively related to the rate of population growth. negatively related to both the rate of investment and to the rate of population growth.

positively related to the rate of investment and negatively related to the rate of population growth.

Since 1900, real GDP per capita in the United States has increased by Question options: 0.5% per year. 1% per year. 2% per year. 4% per year.

2% per year.

In the Malthusian model, improvements in health care lead to Question options: higher population and higher per-capita production. higher population and lower per-capita production. lower population and higher per-capita production. lower population and lower per-capita production.

higher population and lower per-capita production.

We can express the per-worker production function as a function of only per-worker capital thanks to Question options: the decreasing marginal return of capital. the decreasing marginal return of labor. the constant returns to scale. the impatience of households.

the constant returns to scale.

Which of the following, if implemented in the Solow growth model, would not lead to a steady state? Question options: A higher population growth rate. Decreasing returns to scale in production. A savings rate that decreases as income increases. A constant marginal product of capital.

A constant marginal product of capital.

The Golden Rule of capital accumulation maximizes the steady-state level of Question options: output per worker. capital per worker. consumption per worker. investment per worker.

consumption per worker.

In the steady state of Solow's exogenous growth model, an increase in the savings rate Question options: increases output per worker and increases capital per worker. increases output per worker and decreases capital per worker. decreases output per worker and increases capital per worker. decreases output per worker and decreases capital per worker.

increases output per worker and increases capital per worker.

In the steady state of Solow's exogenous growth model, an increase in total factor productivity Question options: increases output per worker and increases capital per worker. increases output per worker and decreases capital per worker. decreases output per worker and increases capital per worker. decreases output per worker and decreases capital per worker.

increases output per worker and increases capital per worker.

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 Question options: szf(k*)=(n+d)k* szk* = (n + d)f(k*) nf(k*)=sk*/(s+d) f(k*)=sk*/(n+d)

szf(k*)=(n+d)k*

In the Malthusian model, population growth is endogenous because Question options: the birth rate is endogenous. the death rate is endogenous. the birth and death rates are endogenous. neither is endogenous.

the birth and death rates are endogenous.

In Solow's exogenous growth model, the principal obstacle to continuous growth in output per capita is due to Question options: the declining marginal product of labor. the declining marginal product of capital. limits in the ability of government policymakers. too little savings.

the declining marginal product of capital.

The Solow residual attempts to measure the amount of output not explained by Question options: technological progress. the direct contribution of labor and capital. economic projections. the amount of a nation's human capital.

the direct contribution of labor and capital.