Question 1

Which of the following is not a measure of human capital?

Accepted Answer

A)   fluency in a foreign language
B)   literacy
C)   willingness to take risks
D)   years of formal education
E)   on-the-job trainingF) B) and D)
G) B) and C)

Question 2

In the long run,by increasing total factor productivity,technological progress

Accepted Answer

A)   reduces both the capital utilization rate and the level of employment
B)   creates unemployment
C)   prevents the economy from going into a steady state
D)   raises the steady-state capital stock
E)   reduces the capital-labor ratioF) A) and B)
G) None of the above

Question 3

If all other factors,including human capital,were the same,then compared with Europe,the rate of return on investment in emerging market economies should be

Accepted Answer

A)   higher, signaling a greater need for new plants and equipment
B)   lower, due to a tradition of central planning
C)   less variable, reflecting less idiosyncratic risk
D)   approximately the same, reflecting competitive pressure
E)   indeterminate, because the emerging markets are not in equilibriumF) A) and E)
G) A) and C) A

Question 4

Which of the following does not promote convergence between nations?

Accepted Answer

A)   equal access to technology
B)   the existence of multinational enterprises
C)   foreign direct investment
D)   openness to foreign trade
E)   international patent protectionF) A) and B)
G) A) and E) E

Question 5

The next questions refer to the following.
Suppose the economy has TFP = 10, there are 400 hours worked, and 60 unit of capital and 210 units of land the Cobb-Douglas production function is:
Output = TFP x Hours0.3 x Capital0.3 x Land0.2.
-For this hypothetical economy,the share of output paid to land is

Accepted Answer

A)   70%
B)   20%
C)   50%
D)   10%
E)   90%F) B) and C)
G) A) and E)

Question 6

The next questions refer to the following.
Suppose the economy has TFP = 10, there are 400 hours worked, and 60 unit of capital and 210 units of land the Cobb-Douglas production function is:
Output = TFP x Hours0.3 x Capital0.3 x Land0.2.
-In this economy,approximately how fast would the capital stock need to grow to produce growth of 1% per annum?

Accepted Answer

A)   1% per annum
B)   2.5% per annum
C)   3.3% per annum
D)   4.8% per annum
E)   5.2% per annumF) C) and E)
G) A) and E)

Question 7

Rent seeking behavior can affect economic growth because

Accepted Answer

A)   it stimulates innovation
B)   it allows arbitrageurs to capture profits that would otherwise go unrealized
C)   it reduces the level of risk in the economy
D)   it provides an efficient use of land
E)   it shift labor away from entrepreneurial activityF) B) and C)
G) B) and D)

Question 8

The next questions refer to the following.
Suppose the economy has TFP = 10, there are 400 hours worked, and 60 unit of capital and 210 units of land the Cobb-Douglas production function is:
Output = TFP x Hours0.3 x Capital0.3 x Land0.2.
-Output is currently about

Accepted Answer

A)   36,000
B)   600
C)   12,000
D)   1,800
E)   6,000F) C) and D)
G) None of the above

Question 9

The historically slow development of the Chinese economy may be attributable to

Accepted Answer

A)   geographical constraints
B)   it large markets
C)   rent-seeking
D)   the size of the labor force
E)   lack of usable natural resourcesF) B) and D)
G) All of the above

Question 10

Generally speaking year of schooling are

Accepted Answer

A)   Rising over time and higher in developed countries than developing
B)   Rising over time and higher in developing countries than developed
C)   Falling over time and higher in developed countries than developing
D)   Falling over time and higher in developing countries than developed
E)   Unchanged over time and higher in developed countries than developedF) All of the above
G) B) and E)

Question 11

If human capital were the same in all countries

Accepted Answer

A)   rates of return on investment would be the same in developed and less-developed countries
B)   industrial nations would invest in less-developed countries
C)   less developed countries would invest in the industrial nations
D)   industrial nations would continue to grow more rapidly than less-developed countries
E)   there would be no incentive for international tradeF) A) and D)
G) All of the above

Question 12

An increase in TFP

Accepted Answer

A)   steepens the aggregate supply curve
B)   shifts the aggregate supply curve upward
C)   shifts the production function upward
D)   increases the rate of depreciation
E)   cannot occur once a steady state has been achievedF) A) and B)
G) B) and E)

Question 13

In which respect is human capital unlike physical capital?

Accepted Answer

A)   human capital does not depreciate
B)   the stock of human capital cannot be increased
C)   human capital cannot be measured
D)   human capital does not affect output
E)   none of the aboveF) B) and C)
G) B) and E) E

Question 14

A sudden technological advance will generally result in

Accepted Answer

A)   higher output and lower investment
B)   higher output and higher investment
C)   higher output but no impact on investment
D)   no impact on output or investment
E)   lower outputF) A) and E)
G) C) and D)

Question 15

Economic historians argue that an important trigger for the Industrial Revolution was

Accepted Answer

A)   the focus on individual property rights emphasized in the Renaissance
B)   the strong emphasis on religious observance in the Middle Ages
C)   the large-scale discovery of silver in the Americas and the increase in European money supply that it created
D)   the creation of the first Central Bank
E)   the restoration of the monarchy in the UKF) None of the above
G) A) and B)

Question 16

Rent-seeking differs from entrepreneurship in that rent-seeking

Accepted Answer

A)   is conducted for profit; entrepreneurship is not
B)   involves risk taking; entrepreneurship does not
C)   is a zero-sum game; entrepreneurship is not
D)   involves innovations; entrepreneurship does not
E)   is illegal; entrepreneurship is notF) B) and D)
G) A) and E)

Question 17

Cultural and social forces,such as religious prohibitions on certain activities or ethical norms regarding effort

Accepted Answer

A)   have no effect on economic output, and so are deliberately excluded from growth accounting
B)   are not captured in the production functions used for growth accounting
C)   are assumed to influence total factor productivity
D)   are measured as part of labor input
E)   are treated as 'social capital' in the production functionF) A) and B)
G) All of the above

Question 18

Increases in human capital

Accepted Answer

A)   reduce the marginal product of labor
B)   increase the marginal product of physical capital
C)   are the by-product of technological innovations
D)   shift the economy's production function downward
E)   are calculated as the difference between birth rates and death ratesF) D) and E)
G) All of the above

Question 19

Developed economies need to engage in research and development more than do developing economies because developed economies

Accepted Answer

A)   have greater capital depreciation rates
B)   have largely exhausted the gains from capital accumulation
C)   are inherently less innovative than developing economies
D)   need to exploit rent-seeking opportunities in order to continue growing
E)   have smaller workforcesF) B) and C)
G) A) and B)

Question 20

Social capital includes

Accepted Answer

A)   rent seeking
B)   corruption
C)   public infrastructure
D)   the internet
E)   civic mindednessF) B) and E)
G) B) and D)

Exam 5: Total Factor Productivity, human Capital, and Technology

Which of the following is not a measure of human capital?

Correct Answer
verified

In the long run,by increasing total factor productivity,technological progress

Correct Answer
verified

If all other factors,including human capital,were the same,then compared with Europe,the rate of return on investment in emerging market economies should be

Correct Answer
verified
A

Which of the following does not promote convergence between nations?

Correct Answer
verified
E

Correct Answer
verified

Correct Answer
verified

Rent seeking behavior can affect economic growth because

Correct Answer
verified

The next questions refer to the following. Suppose the economy has TFP = 10, there are 400 hours worked, and 60 unit of capital and 210 units of land the Cobb-Douglas production function is: Output = TFP x Hours^0.3 x Capital^0.3 x Land^0.2. -Output is currently about

Correct Answer
verified

The historically slow development of the Chinese economy may be attributable to

Correct Answer
verified

Generally speaking year of schooling are

Correct Answer
verified

If human capital were the same in all countries

Correct Answer
verified

An increase in TFP

Correct Answer
verified

In which respect is human capital unlike physical capital?

Correct Answer
verified
E

A sudden technological advance will generally result in

Correct Answer
verified

Economic historians argue that an important trigger for the Industrial Revolution was

Correct Answer
verified

Rent-seeking differs from entrepreneurship in that rent-seeking

Correct Answer
verified

Cultural and social forces,such as religious prohibitions on certain activities or ethical norms regarding effort

Correct Answer
verified

Increases in human capital

Correct Answer
verified

Developed economies need to engage in research and development more than do developing economies because developed economies

Correct Answer
verified

Social capital includes

Correct Answer
verified

Exam 5: Total Factor Productivity, human Capital, and Technology

Which of the following is not a measure of human capital?

Correct AnswerverifiedShow Answer

In the long run,by increasing total factor productivity,technological progress

Correct AnswerverifiedShow Answer

If all other factors,including human capital,were the same,then compared with Europe,the rate of return on investment in emerging market economies should be

Correct AnswerverifiedA

Which of the following does not promote convergence between nations?

Correct AnswerverifiedE

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Rent seeking behavior can affect economic growth because

Correct AnswerverifiedShow Answer

The next questions refer to the following. Suppose the economy has TFP = 10, there are 400 hours worked, and 60 unit of capital and 210 units of land the Cobb-Douglas production function is: Output = TFP x Hours0.3 x Capital0.3 x Land0.2. -Output is currently about

Correct AnswerverifiedShow Answer

The historically slow development of the Chinese economy may be attributable to

Correct AnswerverifiedShow Answer

Generally speaking year of schooling are

Correct AnswerverifiedShow Answer

If human capital were the same in all countries

Correct AnswerverifiedShow Answer

An increase in TFP

Correct AnswerverifiedShow Answer

In which respect is human capital unlike physical capital?

Correct AnswerverifiedE

A sudden technological advance will generally result in

Correct AnswerverifiedShow Answer

Economic historians argue that an important trigger for the Industrial Revolution was

Correct AnswerverifiedShow Answer

Rent-seeking differs from entrepreneurship in that rent-seeking

Correct AnswerverifiedShow Answer

Cultural and social forces,such as religious prohibitions on certain activities or ethical norms regarding effort

Correct AnswerverifiedShow Answer

Increases in human capital

Correct AnswerverifiedShow Answer

Developed economies need to engage in research and development more than do developing economies because developed economies

Correct AnswerverifiedShow Answer

Social capital includes

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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A

Correct Answer
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E

Correct Answer
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Correct Answer
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Correct Answer
verified

The next questions refer to the following. Suppose the economy has TFP = 10, there are 400 hours worked, and 60 unit of capital and 210 units of land the Cobb-Douglas production function is: Output = TFP x Hours^0.3 x Capital^0.3 x Land^0.2. -Output is currently about

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified
E

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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