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Chapter 8
Name: __________________________
Date: _____________
1. The
efficiency of labor
is a term that does not reflect the:
A) high output that comes from labor cooperating with a large amount of capital.
B) health of the labor force.
C) education of the labor force.
D) skills of the labor force acquired through onthejob training.
2. The rate of laboraugmenting technological progress (
g
) is the growth rate of:
A) labor.
B) the efficiency of labor.
C) capital.
D) output.
3. In a steadystate economy with a saving rate s, population growth n, and labor
augmenting technological progress g, the formula for the steadystate ratio of capital per
effective worker (
k
*), in terms of output per effective worker (
f
(
k
*)), is (denoting the
depreciation rate by h ):
A)
sf
(
k
)/(h +
n
+
g
).
B)
s
/((
f
(
k
))(h +
n
+
g
)).
C)
f
(
k
)/((
s
)(h +
n
+
g
)).
D) (
s
–
f
(
k
))/(h +
n
+
g
).
4. In the Solow growth model with population growth and technological change, the
steadystate growth rate of income per person depends on:
A) the rate of population growth.
B) the saving rate.
C) the rate of technological progress.
D) the rate of population growth plus the rate of technological progress.
5. According to the Solow model, persistently rising living standards can only be
explained by:
A) population growth.
B) capital accumulation.
C) saving rates.
D) technological progress.
Page 1
6. With population growth at rate
n
and laboraugmenting technological progress at rate
g
,
the Golden Rule steady state requires that the marginal product of capital (
MPK
):
A) net of depreciation be equal to
n
+
g
.
B) net of depreciation be equal to the depreciation rate plus
n
+
g
.
C) plus
n
be equal to the depreciation rate plus
g
.
D) plus
g
be equal to the depreciation rate plus
n
.
7. In the Solow model with technological progress, the steadystate growth rate of output
per effective worker is:
A) 0.
B)
g
.
C)
n
.
D)
n
+
g
.
8. In the Solow model with technological progress, the steadystate growth rate of total
output is:
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B)
g
.
C)
n
.
D)
n
+
g
.
9. The balancedgrowth property of the Solow growth model with population growth and
technological progress predicts which of the following sets of variables will grow at the
same rate in the steady state?
A) output per effective worker, capital per effective worker, real wage
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This note was uploaded on 11/28/2010 for the course ECO 2023 taught by Professor Foran during the Fall '08 term at Miami Dade College, Miami.
 Fall '08
 FORAN
 Macroeconomics

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