exam1-answers - University of Houston INTB 3353: Economics...

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1 University of Houston Fall 2008 INTB 3353: Economics of Globalization Professor Ruxandra Prodan Section 23202 Exam 1 1. In most countries, the Malthusian predictions have not been realized because a) aggregate demand is declining b) of governmental regulations unforeseen in Malthus’ time c) technology is improving d) population is declining e) the marginal product of labor is increasing 2. In the last 40 years, the most severe recession in US was between: a) 2000-2001 b) 1991-1992 c) 1973-1979 d) 1981-1982 3. Economic growth is a function of: a) technology and capital b) technology and government issued bonds c) capital and government spending d) none of the above 4. The amount of labor input used in the production process is best measured by: a) birth rate b) energy c) the wage d) total hours worked 5. The diminishing marginal product of capital implies: a) that wealthy economies will continue to grow richer while poor countries become poorer b) that an extra machine generates less extra output in a country with little capital than in a country with much capital c) that as nations become poorer, the marginal product of capital declines d) that additions to the capital stock produce more incremental output in poor countries than in rich countries e) a failure on the part of a nation’s investors to replace depreciated capital equipment
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2 6. Between1973-1992, labor input was the most important factor to explain growth in: a) Germany b) United States c) Japan d) United Kingdom 7. Steady-state growth refers to: a) a long run situation in which real GDP per worker is growing at a constant rate b) a short run situation where real GDP per worker is growing at a constant rate c) a long run situation in which the state government grows at a constant rate 8 . Exogenous technology progress: a) depends on the level of imports b) depends on the amount of government spending c) cannot occur in the Solow model d) are improvements in technology not explained in the model 9 According to the Solow growth model, rich countries: a) tend to grow faster than poor ones b) tend to grow slower than poor ones c) tend to grow about the same as poor ones d) none of the above 10 . The relationship described by Phillips Curve is that inflation equals a) Expected inflation plus some coefficient times the interest rate gap b) Negatively to the current rate of unemployment c) Expected inflation plus some coefficient times the output gap d) Expected interest rate plus some coefficient times the output gap 11. Colonialism affected African growth by a) establishing political institutions that persist to the present day b) fractionalizing the continent ethnically and linguistically
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exam1-answers - University of Houston INTB 3353: Economics...

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