Exam 2 AK

Exam 2 AK - Department of Economics ECN 304 Florence Bouvet...

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Department of Economics ECN 304 Florence Bouvet Fall 2009 Midterm 2 –Answer Key Name (Please Print): Scores: Part I: ________/25 Part II: ________/25 Total: ________/50 Please Note: 1. Succinct responses are strongly encouraged. Any erroneous or too much irrelevant information will count against you. Therefore, you will not receive full credit if you provide a complete correct answer but also include erroneous or too much irrelevant information. No credit will be given to answers that do not address the question. 2. Show all your work. Make sure you show all equations used in each calculation. Answers without supporting calculations will receive very little credit. 3. For most questions, you are given a lot more space than you really need . When time is called, please stop work immediately.
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Part I: Multiple Choice Questions (25 points, 2.5 points each) 1) When comparing the advanced countries of the world, a. Countries with high per capita income in 1960 experienced high growth rates between 1960 and 1990 b. Every country experienced the same growth rate between 1960 and 1990 c. The evidence does not support the convergence behavior predicted by the Solow model d. The evidence supports the convergence behavior predicted by the Solow model 2) The Solow growth model assumes that the production function exhibits a. Decreasing returns to scale b. Increasing returns to scale c. Constant returns to scale d. Increasing marginal labor product 3) In the Solow model, the change in capital stock equals a. Investment b. Investment-depreciation c. Investment – inflation d. Investment-depreciation-inflation 4) In the Solow growth model with population growth, but no technological change, a higher level of steady-state output per worker can be obtained by all of the following EXCEPT:: a. increasing the saving rate. b.
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This note was uploaded on 03/08/2011 for the course ECON 304 taught by Professor Eyler during the Spring '07 term at Sonoma.

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Exam 2 AK - Department of Economics ECN 304 Florence Bouvet...

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