practice midterm

practice midterm - to double. 3. As the Solow model...

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Econ 114 Javier Birchenall Practice questions Name: ____________________________ Perm #: ______ Consider the statement of each question and determine whether it is “true”, “false” or “uncertain”. No credit will be given without justi f cation, try to answer all questions since partial credit will be granted. Carefully labeled graphs may help your explanation. If the statement is false, you may want to correct it. Good luck! 1. Large and positive growth in income per-capita has been the norm in human history and current income di f erences simply re F ect past di f erences. 2. Doubling the growth rate of income per-capita reduces in more than half the time it takes for income
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Unformatted text preview: to double. 3. As the Solow model predicts, devoting a larger share of income to investment in the US would help restore the rapid productivity growth characteristic of the 1950s and 1960s. 4. Assume that the production in the economy is carried out with a production function given by Y = K L . Then, the economy will experience increasing returns if and only if + > 1 . 5. During the demographic transition, population growth increased because fertility declined faster than mortality. 1...
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This note was uploaded on 01/25/2011 for the course ECON 114 taught by Professor Cindybenelli during the Fall '08 term at UCSB.

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