chap06 - Macroeconomics, 3e (Williamson) Chapter 6 Economic...

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Macroeconomics, 3e (Williamson) Chapter 6 Economic Growth: Malthus and Solow 1) If changes in economic policy could cause the growth rate of real GDP to increase by 1% per year for 100 years, then GDP would be ________ % higher after 100 years than it would have been otherwise. A) 1.3 B) 2.0 C) 2.7 D) 3.8 Answer: C Question Status: Previous Edition 2) In an exogenous growth model, growth is caused by A) capital accumulation. B) government policies. C) human capital accumulation. D) forces that are not explained by the model itself. Answer: D Question Status: Previous Edition 3) The idea that an improvement in technology causes an increase in population but causes no increase in the average standard of living is attributed to A) Adam Smith. B) Thomas Malthus. C) Robert Solow. D) Milton Friedman. Answer: B Question Status: Previous Edition 4) The Malthusian model performs poorly in explaining economic growth after the A) French Revolution. B) American Revolution. C) Industrial Revolution. D) Bio technology Revolution. Answer: C Question Status: Previous Edition 5) The Solow model emphasizes the role of which of the following factors of production? A) land B) labor C) capital D) natural resources Answer: C Question Status: Previous Edition
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6) Before the Industrial Revolution, standards of living differed A) greatly over time and across countries. B) little over time, but differed greatly across countries. C) greatly over time, but differed little across countries. D) little over time and across countries. Answer: D Question Status: Previous Edition 7) Recent evidence suggests that output per worker is A) positively related to both the rate of investment and to the rate of population growth. B) positively related to the rate of investment and negatively related to the rate of population growth. C) negatively related to the rate of investment and positively related to the rate of population growth. D) negatively related to both the rate of investment and to the rate of population growth. Answer: B Question Status: Previous Edition 8) There is evidence that income per worker is converging in A) the richest countries and the poorest countries. B) the richest countries, but not the poorest countries. C) the poorest countries, but not the richest countries. D) neither the richest nor the poorest countries. Answer: B Question Status: Previous Edition 9) Conditional convergence means that A) the distance between poor and rich countries increases. B) the distance between poor and rich countries stays the same. C) the distance between poor and rich countries decreases. D) there is no systematic pattern in how poor and rich countries grow. Answer:
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chap06 - Macroeconomics, 3e (Williamson) Chapter 6 Economic...

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