Discussion+Section+Problems%2C+Lecture+_7_1_

Discussion+Section+Problems%2C+Lecture+_7_1_ - Econ 100B...

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1/2 Econ 100B Macroeconomic Analysis Professor Steven Wood Discussion Section Problems from Lecture #7 A. Multiple Choice Questions . Circle the letter corresponding to the best answer. 1. The per-worker production function in the Solow model assumes: a. Constant returns to scale and increasing marginal productivity of capital. b. Constant returns to scale and diminishing marginal productivity of capital. c. Increasing returns to scale and diminishing marginal productivity of capital. d. Decreasing returns to scale ad diminishing marginal productivity of capital. 2. In a steady state: a. Both consumption-per-worker and the capital-to-labor ratio are constant. b. Consumption-per-worker is constant but the capital-to-labor ratio can change. c. Capital and labor are inversely related to one another by definition. d. Consumption-per-worker can change but the capital-to-labor ratio is constant. 3.
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This note was uploaded on 10/18/2011 for the course ECON 100B taught by Professor Wood during the Fall '08 term at University of California, Berkeley.

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Discussion+Section+Problems%2C+Lecture+_7_1_ - Econ 100B...

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