EcChapter 8 - 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

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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 on-the-job training. 2. The rate of labor-augmenting technological progress ( g ) is the growth rate of: A) labor. B) the efficiency of labor. C) capital. D) output. 3. In a steady-state economy with a saving rate s, population growth n, and labor- augmenting technological progress g, the formula for the steady-state 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 steady-state 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 labor-augmenting 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 steady-state 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 steady-state growth rate of total output is:
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A) 0. B) g . C) n . D) n + g . 9. The balanced-growth 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.

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EcChapter 8 - 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

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