Quiz 13
A decrease in the saving rate will cause A. temporary decrease in the rate of growth of Y per capita B. no permanent change in level of Y per capita C. temporary decrease in level of Y per capita D. permanently lower rate of growth of Y per capita
A
Assume constant returns to scale and than N & K both increase 2%. Given this we know that A. Y will increase by 2% B. Y will increase by <2% C. Y will increase by 4% D. Y will increase by b/w 2% & 4%
A
Assume decreasing returns to capital, labor, and constant returns to scale. Suppose both K and N decrease by 5%. Given this, we know that Y will A. decrease by 5% B. no change C. reduction in Y will be >5% but <10% D. decrease by less than 5%
A
The most often used measure of changing living standards is A. The growth rate of real GDP per capita B. the growth rate of nominal GDP per capita C. unemployment per capita D. growth rate of nominal GDP E. growth rate of real GDP
A
Decreasing returns to K implies that a 4% increase in K will cause A. Y to increase by exactly 4% B. Y to increase by <4% C. reduction in K/N D. no change in Y/N E. a reduction in Y/N
B
If output per capita grows by a constant 3% per year, then the standard of living would grow by about ___ over 4 years A. 17% B. 13% C. 14% D. 16% E. 15%
B
Which of the following countries had the highest level of output per capita in 1950? A. France B. US C. Japan D. UK
B
An employment decrease by 3% will cause A. K/N will decrease B. Y will decrease by 3% C. Y will decrease by <3% D. Y per capita will decrease by 3%
C
Assume decreasing returns to K, N, and constant returns to scale. Reduction in K will cause A. no change in Y B. increase in K/N ratio C. reduction in Y D. increase in output per capita E. none of the above
C
B/W 1950 & 2004, standards of living in the OECD countries A. did not change at all B. decreased, but at different rates C. were converging D. decreased at the same rate E. all increased at the same rate
C
In Y per capita grows by constant 5% per year, the standard of living would grow by about ___ over 3 years. A. 20% B. 18% C. 16% D. 17% E. 12%
C
Suppose individuals wish to obtain the most accurate comparisons of living standards b/w 2 coutnries. To do so, one would convert one countries output into dollars using A. an average of the last five years' exchange rates B. the current nominal E C. PPP methods D. prior year's real E E. current E
C
Suppose there are 2 countries that are identical except for that the saving rate in A is greater than that in B. We know that in the LR A. the growth rate of Y per capita will be higher in A than in B B. the growth rate of Y per capita will be greater in B than in A C. the growth rate of output per capita will be the same in both countries D. K/N will be the same in both countries
C
Which of the following countries had the lowest level of output per capita in 1950? A. France B. US C. Japan D. UK
C
Which of the following will occur as a result of a permanent reduction in saving rate? A. permanently slower growth rate of Y B. no permanent effect on level of Y per capita C. permanently lower level of Y per worker D. both A and B E. both B and C
C
Assume constant returns to scale and that N&K both increase by 3%. Given this info, we know that A. K/N will decrease B. Y will decrease 6% C. Y will decrease <3% D. Y will decrease by 3%
D
Constant returns to scale implies that if N&K both increase by 3% that A. K/N will increase by 3% B. Y/N will increase by <3% C. Y/N will increase by 3% D. Y will increase by 3%
D
Suppose 2 countries are identical except for that the saving rate is greater in country A than in Country B. Given this we know that in the LR A. Y per capita will be greater in B than in A B. economic growth will be higher in A C. more information is needed to answer this question D. Y per capita will be greater in A
D
Which of the following will cause a reduction in Y/N A. reduction in saving rate B. reduction in K/N C. reduction in capital stock K D. all of the above
D
Which of the following will cause an increase in Y/N
D
Assume the production function exhibits the same characteristics as those presented in the textbook. Based on these characteristics successive and equal increase in K/N will cause A. output per worker to increase by a larger amount B. output per worker will decline C. output per worker will not change D. output pur worker will increase by a constant amount E. output per worker will increase at a declining rate
E
Convergence has been occurring among the OECD countries because A. richer countries have had higher growth rates than poorer ones B. poorer countries have had positive growth rates, while the richer ones have had negative growth rates C. procedures for measuring output per capita have been changing D. richer countries give away more of their output than the poorer ones E. poorer countries have had higher growth rates than the rich ones
E
An increase in the saving rate will cause which of the following? A. permanently higher growth rate of Y per capita B. temporary increase in level of Y per capita C. no permanent change in the level of Y per capita D. temporary increase in rate of growth of Y per capita E. none of the above
WRONG
Assume the country experiences permanent increase in savings rate. Which of the following will occur? A. permanently faster growth rate of Y B. permanently higher level of Y per capita C. permanently higher level of K/N D. all of the above E. both B and C
WRONG
If output per capita grows by constant 6% per year, then the stand of living would grow about ___ over 3 years A. 20% B. 18% C. 19% D. 12% E. 17%
WRONG
In the OECD countries, there is a negative relationship b/w per capita in 1950 and A. population B. growth since 1950 C. distance from the equator D. output per capita in 1990s E. none of the above
WRONG
Increase in N by 3% will cause A. the K/N ratio to increase B. Y per capita will increase by 3% C. Y will increase by <3% D. Y will increase by 3% E. none of the above
WRONG
Suppose 2 countries are identical except for that the saving rate is greater in country A than in country B. Given this information, we know that in the LR A. K/N will be the same in both countries B. economic growth will be higher in A than in B C. K/N will be greater in A D. K/N will be greater in B
WRONG
Using current E, US standard of living is ranked A. lower than it would be under the PPP method B. higher than it would be under PPP method C. among the lowest in the world D. number one in the world E. none of the above
WRONG
Which of the following will cause reduction in Y/N in the LR? A. expansionary monetary policy B. K accumulation or tech progress C. increase in # of workers D. K accumulation E. none of the above
WRONG
