9. Which of the following is NOT a source of increased factor productivity?A) an increase in average years of schoolingB) an increase in on-the-job trainingC) increased investment in healthD) an increase in the size of the capital stock E) an increase in the rate of innovationAns: DDifficulty: Easy10. 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? Difficulty: Easy11. The Cobb-Douglas aggregate production function provides a fairly good approximation of the U.S. economy if we assume that 29

Difficulty: Medium12.If we assume a Cobb-Douglas production function, where the share of capital is 0.25 and the share of labor is 0.75, then the marginal product of labor is equal to Difficulty: Medium13. If we assume a Cobb-Douglas production function where the share of capital is equal to 0.2 and the share of labor is equal to 0.8, then the marginal product of capital is equal toA) 5N/KB) 5Y/K C) Y/4KD) Y/5KE) Y/KAns: DDifficulty: Medium14. In the neoclassical growth model, an increase in the savings rateDifficulty: Easy15. From 1973 to 1992, by how much more did GDP grow in Japan than in the United States? 30

Difficulty: Easy16. Which of the following countries had the lowest ratio of investment to GDP in 1992?Difficulty: Difficult17. Assume a Cobb-Douglas production function where the share of capital and labor is each 1/2.If the growth in total factor productivity is zero and labor and capital each grow by 2%, thenA) output growth is 4% and the marginal product of capital is Y/K B) output growth is 2% and the marginal product of capital is Y/(2K)C) output growth is 2% and the marginal product of labor is (2Y)/N D) output growth is 1% and the marginal product of labor is Y/(2N)E) output growth is 1% and the marginal product of capital is (2Y)/K Ans: BDifficulty: Difficult

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- Winter '14
- Economics, Capital accumulation