ECO 6382 Homework 2.pdf - ECO 6382 Homework 2 1 Which of...

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ECO 6382 Homework 2 1. Which of the following is an example of a ratio scale? a. 1, 2, 3, 4, 5… b. 1, 3, 6, 9, 13… c. 1, 5, 25, 125, 625… d. All of the above 2. A country that, since 1980, has shown convergence to the United States is a. Brazil b. China c. Ethiopia d. Nicaragua 3.With an average annual growth rate of 5 percent per year, per capita income will increase by what factor over a century? a. 16 b. 32 c. 64 d. 126 4. How quickly GDP doubles will depend on: a. The initial value of GDP. b. The growth rate of GDP. c. The current value of GDP. d. All of the above. 5. Which of the following is a cost of economic growth? a. Job loss in certain sectors b. Increased income inequality c. Global warming d. All of the above 6. If Y = AK 1/3 L 2/3 and A grows at a rate of 1 percent per year, K grows at a rate of negative 3 percent per year and L grows at a rate of 3 percent per year, then the growth rate of Y is a. 0 percent. b. 1 percent. c. 2 percent. d. 3 percent.
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7. After graduating college, you start a job making $40,000. Your earnings grow at a constant growth rate of 3 percent per year. When you retire 40 years later, you are earning
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