answers past exam 2 - Name: _ANSWERS_ SID : _ Discussion...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Spring 2007 (Solow Growth Model) Econ 100B 1 of 8 Name: _______ ANSWERS ___________ SID : ____________________________ Discussion Section: ________________ Economic 100B Macroeconomic Analysis Professor Steven Wood Spring 2007 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 3:30 p.m. on February 15, 2007. ______________________ 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. The second shift of any line(s) and new equilibrium points MUST be drawn in blue e. The third shift of any line(s) and new equilibrium points MUST be drawn in green. Do NOT open this test until instructed to do so. Good Luck!
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Spring 2007 (Solow Growth Model) Econ 100B 2 of 8 This page intentionally left blank.
Background image of page 2
Spring 2007 (Solow Growth Model) Econ 100B 3 of 8 A. Multiple Choice Questions . Mark the letter corresponding to the best answer in the corresponding space at the bottom of the page. (3 points each; total of 30 points.) 1. Robert Fogel, a Nobel Laureate, has argued that better health or a higher level of nutrition of workers is important in generating higher standards of living. In the Solow model, we would represent such a change as: a. A one time rise in N because this effectively leads to more workers. b. A rise in labor force growth, n-dot. c. A rise in technology, A. d. Slower rates of decreasing returns to capital accumulation because workers are healthier. e. Higher depreciation rates, δ , because there are now more people working. 2. According to the Solow model, all of these statements about the steady state standard of living are true EXCEPT: a. It depends on how poor the country was (relative to other countries) in the past, say a hundred years ago. b. It is higher if the level of “human capital” or job skills of the economy is higher. c. It is independent of the population of the economy. d. Without technological progress, it does not change. e. Its rate of growth is independent of the savings rate. 3. In microeconomic theory, the average wage rate depends positively on the level of capital per worker. Given this fact, what will happen to the wage rate in an economy, according to the Solow model, if technology, A, increases?
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/20/2008 for the course ECON 100B taught by Professor Wood during the Spring '08 term at University of California, Berkeley.

Page1 / 8

answers past exam 2 - Name: _ANSWERS_ SID : _ Discussion...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online