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Chap003

# Chap003 - Chapter 03 Growth and Accumulation Chapter 03...

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Chapter 03 - Growth and Accumulation Chapter 03 Growth and Accumulation Multiple Choice Questions 1. Growth accounting explains a. How economic decisions control the accumulation of capital b. How the current savings rate affects the stock of capital in the future C . What part of growth in total output is due to growth in different factors of production? d. All of the above e. Only A and B Difficulty: Medium 2. The relationship between the output produced in an economy, the input of factors of production, and the state of technological knowledge is called the a. The aggregate supply function B . Aggregate production function c. Aggregate investment function d. Marginal product of labor e. Marginal product of capital Difficulty: Easy 3. Given the production function Y = AF(K,N) and assuming constant returns to scale, the contribution of capital to output growth can be estimated by a. Adding the growth rate of capital to the term A B . Multiplying the growth rate of capital by capital's share in production c. Subtracting the growth rate of labor from the rate of technological advancement d. Multiplying the capital-labor ratio by the level of output e. Multiplying total factor productivity with capital's share in production Difficulty: Medium 3-1

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Chapter 03 - Growth and Accumulation 4. For the U.S. economy, we can assume that a. Output grows at the same rate as both capital and labor b. Capital is a larger source of growth than labor C . Labor is a larger source of growth than capital d. Capital and labor both contribute equally to output growth e. Both A and D Difficulty: Easy 5. Which of the following is NOT a source of long-term output growth? A . Growth in consumption expenditures b. Growth in labor inputs c. Growth in capital inputs d. Improved technological efficiency e. Growth in the stock of knowledge Difficulty: Easy 6. Which of the following is NOT a source of increased factor productivity? a. Advances in knowledge B . Growth in the labor force c. More efficient resource allocation d. Improved methods of production e. Technological progress Difficulty: Medium 7. Which of the following economists contributed greatly to neoclassical growth theory in the 1950s and 1960s? a. Robert Barro b. Robert Lucas c. Gregory Mankiw d. Paul Romer E . Robert Solow Difficulty: Easy 3-2
Chapter 03 - Growth and Accumulation 8. Changes in total factor productivity are also called a. Changes in labor productivity b. Changes in the marginal product of capital c. Changes in input costs d. The Cobb-Douglas residual E . The Solow residual Difficulty: Easy 9. Which of the following is NOT a source of increased factor productivity? a. An increase in average years of schooling b. An increase in on-the-job training c. Increased investment in health D . An increase in the size of the capital stock e. An increase in the rate of innovation Difficulty: Easy 10. According to Solow's estimate, out of the average annual economic growth rate of 2.9% for the U.S. from 1909 to 1949, how much was attributable to the accumulation of capital?

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Chap003 - Chapter 03 Growth and Accumulation Chapter 03...

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