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# tb11sansans - Chapter 11 The Big Questions of Economic...

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Chapter 11 The Big Questions of Economic Growth 1) The so-called "Four Tigers" do not include A) Japan. B) Hong Kong. C) Taiwan. D) Singapore. 2) For the past 30 years, labor's share of national income _____ while labor productivity _______. A) fell dramatically, increased B) remained roughly constant, dropped. C) remained roughly constant, increased. D) increased modestly, dropped. 3) The formula for the growth rate of multifactor productivity is A) a = y + bk +(1-b)n B) y = a + bk + bn C) a = y-bk-(1-b)n D) y = a-b/k(1-b)n 4) In the formula used to measure the growth rate of multifactor productivity, the contribution of labor is represented by A) bn B) bk - bn C) y - bk D) (1-b)n 5) In the formula for calculating the growth rate of multifactor productivity, the growth rate of labor productivity is represented by A) y-n B) b(k-n) C) bk/n D) b-n 25

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6) What is the growth rate of multifactor productivity if b = .20, k = 3, n = 1, and y = 4? A) 1.0 B) 0.4 C) 2.4 D) 2.8 7) If the growth rate of multifactor productivity is 2.5, and b = .25, k = 4, n = 2, and y = 5, then the growth rate of labor productivity is A) 3.0 B) 8.0 C) 2.0 D) 2.5 8) If the growth rate of multifactor productivity is 1.775, b = 0.15, n = 1, and y = 3, then the growth rate of capital is A) 1.225 B) 1.45 C) 4.0 D) 2.5 9) If W is the nominal wage rate, N is the quantity of labor, P is the price level, and Y is real income, then labor's share in national income is A) WN - PY B) WP/YN C) WN/PY D) PY-WN 10) If labor's share of national income is to remain constant, then _____________________. A) the real wage must grow faster than labor productivity B) the real wage must grow at the same rate as labor productivity C) labor productivity must grow faster than the real wage D) the combined growth rates of labor productivity and the real wage must equal the growth rate of national income 26
11) Labor's share of national income is equal to ______. A) 1 - b B) WN/PY C) (W/P)/(Y/N) D) All of the above. 12) If w is the growth rate of the nominal wage rate, p is the inflation rate as measured by the price deflator for total GDP, y is the growth rate for total domestic product, and n is the growth rate of labor, then the growth of real wage is ______. A) wp/n B) y - p C) w - p D) wn/p 13) Which of the following are not examples of "convergence"? A) Japan and Europe B) Individual states within the United States C) regions within western Europe D) major nations in Latin America and Western Europe 14) A decrease in labor productivity and the real wage could be caused by A) a decrease in demand for labor or an increase in the supply of labor. B) a decrease in the demand for labor or a decrease in the supply of labor. C)

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tb11sansans - Chapter 11 The Big Questions of Economic...

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