Question 1

According to growth accounting estimates,during the 1929-1982 period,increases in capital and labor account for about ______ of total growth.

Accepted Answer

A)  0 percent.
B)  25 percent.
C)  50 percent.
D)  90 percent.
E)  none of the above. D

Question 2

According to Edward Denison,what were the main sources of U.S.growth between 1929 and 1982? Which were the most important?

Accepted Answer

According to Edward Denison,the main sou...

Question 3

In the neoclassical growth model,convergence is conditional upon two countries having

Accepted Answer

A)  the same savings rates.
B)  the same depreciation rates.
C)  the same technology growth rates.
D)  the same population growth rates.
E)  all of the above.

Question 4

Data on convergence suggests:

Accepted Answer

A)  poor countries are converging with the median country.
B)  rich countries are converging with other rich countries.
C)  only countries with the same populations are convergine.
D)  none of the above.

Question 5

According to Edward Denison's estimates,the largest proportion of economic growth during the 1929-82 period was

Accepted Answer

A)  growth in the labor input.
B)  growth in output per unit of input.
C)  growth in the capital input.
D)  economies of scale.
E)  education.

Question 6

In the neoclassical growth model without technological progress,in the steady-state the level of capital increases at

Accepted Answer

A)  the growth of technology plus the growth of population.
B)  the growth of technology plus the growth of population plus depreciation.
C)  the growth of technology.
D)  the growth of population.

Question 7

According to the neoclassical growth model,if a country makes a policy change to increase its savings rate,in the new steady state:

Accepted Answer

A)  output per worker will grow faster than before.
B)  output per worker will grow at the rate of technology growth.
C)  capital per worker will be permanently higher.
D)  all of the above. D

Question 8

International data suggests that countries with different steady states will

Accepted Answer

A)  converge to the same growth rates of output.
B)  converge to the same per-capita output levels.
C)  not converge.
D)  converge to the same steady state in the long-run.

Question 9

Consider two countries that are exactly the same except that one country A has a higher savings rate than country B.Which country will grow faster in the long-run? Which country will be richer in the long-run? Use a graph of the aggregate production function to illustrate your answer.

Accepted Answer

Country A will be richer in th...

Question 10

Explain the term "constant returns to scale." Define the term "diminishing marginal returns".Can a production function exhibit both of these properties?

Accepted Answer

Constant returns to scale means that if ...

Question 11

According to Edward Denison,during the 1929 and 1982 period,capital formation

Accepted Answer

A)  was responsible for 25 percent of U.S.economic growth.
B)  amounted to 19 percent of U.S.economic growth.
C)  was considered the smallest source of U.S.economic growth.
D)  was the most important source of U.S.economic growth.

Question 12

Steady-state growth refers to

Accepted Answer

A)  intermediate-run periods.
B)  long-run equilibrium growth.
C)  output determination in the short run.
D)  None of the above

Question 13

In the neoclassical model,explain the difference between a transition period and a steady state.What are the primary sources of growth in the transition period,and how does it differ from the steady state?

Accepted Answer

The transition period is the time in whi...

Question 14

Economies of scale refer to

Accepted Answer

A)  costs rising as the scale of production increases.
B)  costs falling as the scale of production increases.
C)  output rising as the level of inputs rises.
D)  the marginal product of labor diminishes as the quantity of labor increases.

Question 15

Would you get the same answer in a model of endogenous growth? Would you expect convergence to occur? Explain.

Accepted Answer

In a model of endogenous growth,changes in exogenous factors such as depreciation can affect growth in both the short-run and the long-run because there is no steady state.Thus,country A would permanently grow slower than country B because of a higher rate of depreciation and there is no convergence between the two countries.

Question 16

Which of the following statements is (are) correct? According to United States data,

Accepted Answer

A)  growth in the labor force has steadily increased since 1960.
B)  capital formation has slowly increased since the 1960s.
C)  the rate of growth in output and labor productivity has remained relatively steady.
D)  the rate of growth in output and labor productivity sped up since 1960.
E)  none of the above.

Question 17

A constant returns to scale production function means that if all inputs are halved then output will

Accepted Answer

A)  double.
B)  increase,but not double.
C)  fall by half.
D)  fall,but not by half.
E)  none of the above.

Question 18

In the neoclassical growth model,break-even investment must cover

Accepted Answer

A)  the depreciation in capital.
B)  the rate of technology growth.
C)  depreciation and capital for new workers (population growth) .
D)  capital for new workers (population growth) and technology growth.
E)  none of the above.

Question 19

According to Edward Denison,during the 1929-1982 period,real output grew at an annual rate of

Accepted Answer

A)  1.4 percent.
B)  0.6 percent.
C)  2.9 percent.
D)  just below 1 percent.
E)  exactly one-half percent.

Question 20

The fact that long-run growth in the U.S.has been relatively stable is consistent with the ______ model.

Accepted Answer

A)  endogenous growth.
B)  supply-side.
C)  Keynesian.
D)  neoclassical growth.
E)  none of the above.

Exam 20: Long-Run Economic Growth: Origins of the Wealth of Nations

According to growth accounting estimates,during the 1929-1982 period,increases in capital and labor account for about ______ of total growth.

Correct Answer
verified
D

According to Edward Denison,what were the main sources of U.S.growth between 1929 and 1982? Which were the most important?

Correct Answer
verified
According to Edward Denison,the main sou...
View Answer

In the neoclassical growth model,convergence is conditional upon two countries having

Correct Answer
verified

Data on convergence suggests:

Correct Answer
verified

According to Edward Denison's estimates,the largest proportion of economic growth during the 1929-82 period was

Correct Answer
verified

In the neoclassical growth model without technological progress,in the steady-state the level of capital increases at

Correct Answer
verified

According to the neoclassical growth model,if a country makes a policy change to increase its savings rate,in the new steady state:

Correct Answer
verified
D

International data suggests that countries with different steady states will

Correct Answer
verified

Consider two countries that are exactly the same except that one country A has a higher savings rate than country B.Which country will grow faster in the long-run? Which country will be richer in the long-run? Use a graph of the aggregate production function to illustrate your answer.

Correct Answer
verified
Country A will be richer in th...
View Answer

Explain the term "constant returns to scale." Define the term "diminishing marginal returns".Can a production function exhibit both of these properties?

Correct Answer
verified
Constant returns to scale means that if ...
View Answer

According to Edward Denison,during the 1929 and 1982 period,capital formation

Correct Answer
verified

Steady-state growth refers to

Correct Answer
verified

In the neoclassical model,explain the difference between a transition period and a steady state.What are the primary sources of growth in the transition period,and how does it differ from the steady state?

Correct Answer
verified
The transition period is the time in whi...
View Answer

Economies of scale refer to

Correct Answer
verified

Would you get the same answer in a model of endogenous growth? Would you expect convergence to occur? Explain.

Which of the following statements is (are) correct? According to United States data,

Correct Answer
verified

A constant returns to scale production function means that if all inputs are halved then output will

Correct Answer
verified

In the neoclassical growth model,break-even investment must cover

Correct Answer
verified

According to Edward Denison,during the 1929-1982 period,real output grew at an annual rate of

Correct Answer
verified

The fact that long-run growth in the U.S.has been relatively stable is consistent with the ______ model.

Correct Answer
verified

Exam 20: Long-Run Economic Growth: Origins of the Wealth of Nations

According to growth accounting estimates,during the 1929-1982 period,increases in capital and labor account for about ______ of total growth.

Correct AnswerverifiedD

According to Edward Denison,what were the main sources of U.S.growth between 1929 and 1982? Which were the most important?

Correct AnswerverifiedAccording to Edward Denison,the main sou...View AnswerShow Answer

In the neoclassical growth model,convergence is conditional upon two countries having

Correct AnswerverifiedShow Answer

Data on convergence suggests:

Correct AnswerverifiedShow Answer

According to Edward Denison's estimates,the largest proportion of economic growth during the 1929-82 period was

Correct AnswerverifiedShow Answer

In the neoclassical growth model without technological progress,in the steady-state the level of capital increases at

Correct AnswerverifiedShow Answer

According to the neoclassical growth model,if a country makes a policy change to increase its savings rate,in the new steady state:

Correct AnswerverifiedD

International data suggests that countries with different steady states will

Correct AnswerverifiedShow Answer

Consider two countries that are exactly the same except that one country A has a higher savings rate than country B.Which country will grow faster in the long-run? Which country will be richer in the long-run? Use a graph of the aggregate production function to illustrate your answer.

Correct AnswerverifiedCountry A will be richer in th...View AnswerShow Answer

Explain the term "constant returns to scale." Define the term "diminishing marginal returns".Can a production function exhibit both of these properties?

Correct AnswerverifiedConstant returns to scale means that if ...View AnswerShow Answer

According to Edward Denison,during the 1929 and 1982 period,capital formation

Correct AnswerverifiedShow Answer

Steady-state growth refers to

Correct AnswerverifiedShow Answer

In the neoclassical model,explain the difference between a transition period and a steady state.What are the primary sources of growth in the transition period,and how does it differ from the steady state?

Correct AnswerverifiedThe transition period is the time in whi...View AnswerShow Answer

Economies of scale refer to

Correct AnswerverifiedShow Answer

Would you get the same answer in a model of endogenous growth? Would you expect convergence to occur? Explain.

Which of the following statements is (are) correct? According to United States data,

Correct AnswerverifiedShow Answer

A constant returns to scale production function means that if all inputs are halved then output will

Correct AnswerverifiedShow Answer

In the neoclassical growth model,break-even investment must cover

Correct AnswerverifiedShow Answer

According to Edward Denison,during the 1929-1982 period,real output grew at an annual rate of

Correct AnswerverifiedShow Answer

The fact that long-run growth in the U.S.has been relatively stable is consistent with the ______ model.

Correct AnswerverifiedShow Answer

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D

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According to Edward Denison,the main sou...
View Answer

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D

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Country A will be richer in th...
View Answer

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Constant returns to scale means that if ...
View Answer

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The transition period is the time in whi...
View Answer

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