Ch11_TB_5e - 97 CHAPTER 11. SAVING, CAPITAL ACCUMULATION,...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 11. SAVING, CAPITAL ACCUMULATION, AND OUTPUT MULTIPLE CHOICE QUESTIONS M 1. An increase in the saving rate will affect which of the following variables in the long run? a. output per worker. b. capital per worker. c. the level of investment. d. all of the above. M 2. A reduction in the saving rate will NOT affect which of the following variables in the long run? a. output per worker. b. the growth rate of output per worker. c. the amount of capital in the economy. d. capital per worker. e. none of the above M 3. Which of the following will cause an increase in output per worker in the long run? a. an increase in the saving rate. b. a reduction in the depreciation rate. c. an increase in the stock of human capital. d. all of the above. E 4. Which of the following statements is always true? a. Investment equals depreciation. b. Investment equals the capital stock minus depreciation. c. The capital stock is equal to investment minus depreciation. d. Any change in the capital stock is equal to investment minus depreciation. e. The increase in investment is equal to the capital stock minus depreciation. E 5. Which of the following is NOT a flow variable? a. investment. b. saving. c. the money supply. d. output. e. all of the above. M 6. The capital-labor ratio will tend to decrease over time when a. investment per worker equals saving per worker. b. investment per worker is less than saving per worker. c. investment per worker exceeds depreciation per worker. d. saving per worker equals depreciation per worker. e. output per worker exceeds capital per worker. M 7. In the absence of technological progress, which of the following remains constant in the steady state equilibrium? a. Investment per worker. b. Output per worker. c. Saving per worker. d. all of the above. e. only a and b. M 8. Suppose, due to the effects of a military conflict that has ended, that a country experiences a large reduction in its capital stock. Assume no other effects of this event on the economy. Which of the following will tend to occur as the economy adjusts to this situation? 97
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
a. a relatively low growth rate for some time. b. a relative high growth rate for some time. c. zero growth for some time, followed by a gradually increasing growth rate. d. positive growth, followed by negative growth, and then zero growth. e. none of the above. M 9. For this question assume that technological progress does not occur. The rate of saving in Canada has generally been greater than the saving rate in the U.S. Given this information, we know that in the long run: a. Canada’s growth rate will be greater than the U.S. growth rate. b. investment per worker in Canada will be no different than U.S. investment per worker. c. capital per worker in Canada will be no different than U.S. capital per worker.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 10

Ch11_TB_5e - 97 CHAPTER 11. SAVING, CAPITAL ACCUMULATION,...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online