answers past exam 1

answers past exam 1 - Class ID Number: _ Name: _ANSWERS_...

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Class ID Number: ________________ Name: __________ ANSWERS __________ (Last name, first name) SID: ______________________________ Discussion Section: ______________________________ Fall 2006 (Solow Growth Model) Econ 100B 1 of 8 Economic 100B Macroeconomic Analysis Professor Steven Wood Fall 2006 Exam #1 ANSWERS Please sign the following oath: The answers on this test are entirely my own work. I neither gave nor received any aid while taking this test. I will not discuss the questions on this test until after 5:00 p.m. on September 28, 2006. ______________________ Signature Any test turned in without a signature indicating that you have taken this oath will be assigned a grade of zero. Graph Instructions When drawing diagrams, the following rules apply: a. Completely , clearly and accurately label all axis, lines, curves, and equilibrium points. b. The original diagram and equilibrium points MUST be drawn in black or pencil. c. The first shift of any line(s) and the new equilibrium points MUST be drawn in red. d. Any subsequent shifts in curves and new equilibrium points MUST be drawn in another color, first blue and then green. Do NOT open this test until instructed to do so. Good Luck!
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Class ID Number: ________________ Name: __________ ANSWERS __________ (Last name, first name) SID: ______________________________ Discussion Section: ______________________________ Fall 2006 (Solow Growth Model) Econ 100B 2 of 8 This page intentionally left blank.
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Class ID Number: ________________ Name: __________ ANSWERS __________ (Last name, first name) SID: ______________________________ Discussion Section: ______________________________ Fall 2006 (Solow Growth Model) Econ 100B 3 of 8 A. Multiple Choice Questions . Mark the letter corresponding to the best answer on your Scantron. (3 points each; total of 30 points.) 1. According to the Harrod-Domar model, a rise in the saving rate would increase the rate of economic growth permanently. This: a. Is consistent with the Solow Growth Model. b. Could be due to the absence of diminishing returns to capital accumulation . c. Could be due to the savings leading to more investment. d. Suggests budget deficits have fewer adverse effects than in the Solow Growth Model. e. Could be due to capital inflows from abroad. 2. In Ghana the standard of living deteriorated between 1960 and 1990. This could have been due to: a. A rise in productivity, A. b. A fall in labor force growth. c. A rise in the budget surplus. d. A rise in labor force growth. e. A one-time surge in immigration in 1960. 3. According to Joseph Stiglitz, a Nobel Laureate in Economics, patents discourage innovation since they give firms monopoly power, and so discourage competition and further innovation. This view: a. Contradicts the implications of New Growth Theory. b.
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This note was uploaded on 04/20/2008 for the course ECON 100B taught by Professor Wood during the Spring '08 term at Berkeley.

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answers past exam 1 - Class ID Number: _ Name: _ANSWERS_...

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