TB_04 - Chapter 4 Growth and Policy Difficulty Medium 1 Assume a production function with only two inputs capital and labor In this case the concept of

TB_04 - Chapter 4 Growth and Policy Difficulty Medium 1...

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Chapter 4: Growth and PolicyDifficulty: Medium1. Assume a production function with only two inputs, capital and labor. In this case, the concept of a diminishing marginal product of capital implies that A) as less capital is being used, more and more labor has to be employed to increase output B) as both labor and capital inputs are increased, output increases but at a decreasing rateC) as the amount of capital is increased and the amount of labor remains fixed, output increases but at a decreasing rate D) as the amount of capital increases and the amount of labor remains fixed, output cannot increaseE) labor inputs have a bigger impact on increasing output than capital inputsAns: CDifficulty: Easy2. Which of the following countries had the HIGHEST average annual growth rate of GDP per capita between 1988 and 2007?Difficulty: Easy3. Which of the following countries had the LOWEST average annual growth rate of GDP per capita between 1988 and 2007?Difficulty: Easy4. Which of the following countries annual growth rate of GDP per capita between 1988 and 2007 was closest to that of the United States? 4-1
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Difficulty: Easy5. Which of the following economists did NOT significantly contribute to the debate on exogenous versus endogenous growth?A) Robert Barro B) Gregory Mankiw C) Robert Lucas D) David RicardoE) Paul Romer Ans: DDifficulty: Medium6. A production function that assumes a diminishing marginal product of capital Difficulty: Medium7. The concept of diminishing marginal returns implies that Difficulty: Medium
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  • Spring '17
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  • Economics, Gdp, Capital accumulation

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