1、17Exercise for MacroeconomicsChapter 3TRUE/FALSE1. The standard of living of people in a country is their per capita income.2. Diminishing returns to labor implies that eventually the marginal product of labor will become negative.3. The marginal product of capital is how much output changes when ca
2、pital increases by one unit.4. Saving is income that is not consumed.5. Real saving equals gross investment.MULTIPLE CHOICE1. World growth data shows that from 1960 to 2000:a. the US and other OECD countries grew at moderate rates.c. some countries particularly East Asian countries grew rapidly.b. s
3、ub-Saharan African countries grew at low rates or declined.d. all of the above.2. World growth data reveals that from 1960 to 2000:a. the US and other OECD countries grew at moderate rates.c. some countries particularly East Asian countries grew a low rates or declined.b. sub-Saharan African countri
4、es grew rapidly.d. all of the above. 3. World growth data reveals that from 1960 to 2000:a. the US and other OECD countries stagnated.c. some countries particularly East Asian countries grew at low or negative rates.b. sub-Saharan African countries grew at low or negative rates.d. all of the above.
5、4. World growth data reveals that from 1960 to 2000:a. all countries grew at similar rates. c. some countries particularly East Asian countries grew rapidly.b. sub-Saharan African countries grew moderately.d. the US and other OECD countries stagnated.5. The US and other OECD countries had high level
6、s of GDP per person in 2000 despite growing at a moderate rate from 1960 to 2000 because:18a. of exploitation of foreign countries. c. they stole the wealth of less developed countries. b. their economies had grown at a moderate rate for a century or more. d. all of the above.6. If A in the producti
7、on function Y = A F(K,L) rises, then:a. output rises for any level of K and L. c. the marginal product of capital rises. b. the marginal product of labor rises. d. all of the above.7. A in the production function Y = A F(K,L) is:a. the marginal product of labor. c. the marginal product of capital. b
8、. the capital to labor ratio (K/L). d. the level of technology.8. The marginal product of labor is:a. how much output rises for when labor increases one unit.c. labor divided by capital (L/K)b. capital divided by labor (K/L). d. the level of technology.9. The marginal product of capital is:a. . c. t
9、he slope of the production when technology and labor are held constant. b. the change in output for a unit change in capital. d. all of the above. 10. Diminishing marginal product of capital (MPK) means:a. output rises as capital rises. c. output rises as the MPK rises.b. the MPK eventually falls as
10、 capital rises. d. the marginal product of capital eventually becomes negative as capital rises.11. In the production function Y = A F(K,L), L is:a. leisure. c. the marginal product of labor.b. labor. d. the marginal product of leisure.12. In the production function Y = A F(K,L), Y is:a. good Y. c.
11、the marginal product of good Y.b. production. d. constant returns to scale.13. Among the assumptions made about the production function Y = A (K,L) is:a. diminishing marginal product of labor. c. diminishing marginal product of capital.b. constant returns to scale. d. all of the above.14. For the pr
12、oduction function Y = A F(K,L) constant returns to scale means:a. if capital and labor double output doubles. c. the marginal products of capital and labor are constant.b. capital and labor increase at a constant rate.d. technology is constant.1915. If the production function Y = A (K,L) is divided
13、by L, thena. (Y/L) = Af(K/L). c. y = Af(k).b. output per capita equals technology times a function of the capital labor ratio.d. all of the above.16. Among the categories the growth rate is broken down into by growth accounting is:a. the growth rate of technology. c. the capital labor ratio.b. the m
14、arginal product of capital. d. all of the above.17. Growth accounting shows that GDP growth depends on: a. growth of the capital stock. c. government purchases.b. holding environmental pollution in check. d. having a reasonable distribution of income. 18. Growth accounting shows that economic growth
15、 depends on:a. government tax receipts. c. lowering environmental pollution.b. the growth of the labor force. d. all of the above. 19. Growth accounting shows that economic growth depends on:a. controlling environmental pollution. c. increases in technology.b. international cooperation. d. all of th
16、e above. 20. Growth accounting shows that economic growth depends on:a. increases in technology. c. growth in the capital stock.b. the growth of the labor force. d. all of the above. 21. The growth accounting formula is:a. c.b. d. Y= A F(K,L)22. The labor force participation rate is:a. the labor for
17、ce divided into population. c. the labor force times population.b. the labor force divide by population. d. the labor population minus the labor force. 23. If a country has a population of 100 million and a labor force of 60 million, then its labor force participation rate is:a. 0.6. c. 40 million.b
18、. 1.67 d. 60 million.24. If a country has a population of 300 million and a labor force of 200 million, then its labor force participation rate is:a. 0.67 c. 100 million.b. 1.5 d. 200 million.25. The change in the capital stock in an economy depends on:20a. the economys saving. c. the economys inves
19、tment. b. the change in bond prices. d. all of the above. 26. In a closed economy with no government sector, the change in the capital stock is:a. net investment less depreciation. c. gross investment. b. gross investment less depreciation. d. nominal saving. 27. In a closed economy with no governme
20、nt sector, the change in the capital stock is equal to:a. net investment less depreciation. c. gross investment. b. nominal saving. d. real saving. 28. Depreciation of the capital stock occurs due to:a. machines deteriorating. c. bonds falling in value.b. real estate rising in value. d. all of the a
21、bove. 29. Depreciation of the capital stock occurs due to:a. inflation. c. bonds falling in value.b. buildings needing repair. d. all of the above. 30. Depreciation of the capital stock occurs due to:a. deflation. c. bonds falling in value.b. vehicles requiring new parts. d. all of the above. 31. De
22、preciation of the capital stock occurs due to:a. machines deteriorating. c. buildings needing repair.b. vehicles needing parts. d. all of the above. 32. If there are 120 machines in an economy and the depreciation rate is 5% per year, then:a. depreciation is 5 machines a year. c. depreciation is 115
23、 machines per year.b. depreciation is 6 machines a year. d. depreciation is 114 machines per year. 33. If there are 120 machines in an economy and the depreciation rate is 10% per year, then next year there are:a. 10 of the original machines left. c. 108 of the original machines left. b. 12 of the o
24、riginal machines left. d. 110 of the original machines left. 34. The average product of capital is:a. c. .b. Y/K. d. .Figure 3.121A = F(K,L)CapitalOutput35. In Figure 3.1 the average product of capital is:a. rising. c. falling. b. constant. d. unknown.36. In Figure 3.1 the marginal product of capita
25、l is:a. rising. c. constant. b. declining. d. unknown.37. Figure 3.1 shows:a. a production function with labor and technology constant. c. a production function with capital and technology constant. b. a production function with capital and labor constant.d. a production function with capital, labor
26、 and technology constant. 38. In the steady state of the Solow growth model:a. c.b. d. 39. In the Solow growth model the economy reaches the optimal k*:a. immediately. c. randomly.b. over a period of time. d. cyclically. 40. The Solow growth model assumes unemployment is:a. zero. c. rising.b. fallin
27、g. d. constant.41. The Solow growth model ignores:a. the international sector. c. changes in labor force participation.b. the role of government. d. all of the above.42. The Solow growth model shows that the growth rate of real GDP per worker depends on:a. the saving rate, s c. the depreciation rate
28、, .b. the growth rate of the labor force, n. d. all of the above. 2243. The Solow growth model shows that the growth rate of real GDP per worker depends on:a. the saving rate, s c. the rate of inflation.b. government spending, G. d. all of the above. 44. The Solow growth model shows that the growth
29、rate of real GDP per worker depends on:a. the rate of growth of the money supply. c. rate of growth of government debt. b. the growth rate of the labor force, n. d. all of the above. 45. The Solow growth model shows that the growth rate of real GDP per worker depends on:a. the rate of growth of the
30、money supply. c. the depreciation rate, .b. level of output in the economy. d. all of the above. 46. In the Solow growth model the optimal capital to labor ratio, K/L, is where: a. s + n = s(k/y). c. n + s = s(y/k).b. s + n = s(y/k). d. s + s = n(y/k).47. In the Solow growth model the steady state i
31、s when the economy has:a. full employment. c. zero inflation.b. the optimal capital labor ratio, k*. d. all of the above.48. During the transition to the steady state in the Solow growth model:a. the output per worker rises. c. the rate of growth of capital rises. b. labor force participation rises.
32、 d. all of the above.49. During the transition to the steady state in the Solow growth model:a. the output per worker falls. c. the rate of growth of capital falls. b. labor force participation rises. d. all of the above.50. During the transition to the steady state in the Solow growth model:a. the
33、output per worker rises. c. the rate of growth of capital falls. b. the capital to labor ratio rises. d. all of the above.51. The Solow residual is:a. that part of output growth not attributed to labor force growth. c. that part of output growth not attributed to capital stock growth and labor force
34、 growth. b. that part of output growth not attributed to capital stock growth. d. the growth in output. 52. The Solow residual is that part of output growth attributed to:a. the growth rate of the labor force. c. the growth rate of the capital stock.b. the growth rate of output. d. the grow rate of
35、technology.53. The Solow residual:a. is not directly observable. c. is attributed to capital stock growth. b. attributed to labor force growth. d. is attributed to labor force growth and 23capital stock growth. SHORT ANSWER1. What is a production function?2. What do constant returns to scale imply?3
36、. What is the growth account formula and what does it tell us?4. Show why real saving equals net investment.5. What is the key equation of the Solow growth model and what does it say to us?Exercise for MacroeconomicsChapter 4TRUE/FALSE1. An increase in the depreciation rate affects the steady-state
37、capital per worker the same way as an increase in the population growth rate.2. If the saving rate increases, then the optimum level of capital per worker falls.3. An increase in technology causes the real GDP per worker to increase during the transition to the steady-state.4. An increase in technol
38、ogy cause the growth in real output per worker to be higher in the long run or steady-state.5. The Solow model of growth says that poorer economies should over time converge towards richer ones in terms of real output put worker.MULTIPLE CHOICE241. In the revised version of the Solow growth model th
39、e optimal level of capital stock per worker depends on:a. the saving rating. c. population growth rate. b. the depreciation rate. d. all of the above. 2. In the revised version of the Solow growth model the optimal level of the capital stock per worker depends on:a. monetary growth. c. the saving ra
40、te.b. government spending. d. all of the above. 3. In the revised version of the Solow growth model the optimal level of the capital stock per worker depends on:a. monetary growth. c. appreciation in the stock market. b. the depreciation rate. d. all of the above. 4. In the revised version of the So
41、low growth model the optimal level of the capital stock per worker depends on:a. the population growth rate. c. inflation. b. government spending. d. all of the above. 5. In the Solow growth model as a growing economy transitions to the steady state:a. the average product of capital falls. c. the av
42、erage product of labor falls. b. output per worker is constant. d. the growth rate of capital is equal to zero.6. In the Solow growth model in the steady state the growth rate of capital per worker, k*, is:a. rising. c. fluctuating.b. falling. d. zero.7. In the Solow growth model, if technology, A,
43、improves, then in the steady state:a. output per worker grows faster. c. capital per worker grows faster. b. output per worker grows at the same rate, zero. d. all of the above. 8. In the Solow growth model, if the population growth rate, n, increases, then in the steady state:a. output per worker g
44、rows slower. c. capital per worker grows at the same rate, zero.b. capital per worker grows slower. d. all of the above. 9. In the Solow growth model, if the depreciation rate, , increases, then in the steady state:a. output per worker grows at the same rate, zero. c. capital per worker grows faster
45、. b. output per worker grows faster. d. all of the above. 10. In the Solow growth model, if labor input, L(0), increases, then in the steady state:a. output per worker grows faster. c. capital per worker grows faster. b. capital per worker grows at the same rate, zero. d. all of the above. 2511. In
46、the Solow growth model in the steady state the growth rate of output per worker, y*, is:a. rising. c. constant at zero.b. falling. d. fluctuating.12. If the saving rate increases in the Solow growth model, then during the transition to the steady state: a. the growth rate of capital per worker will
47、increase.c. the growth rate of capital per worker is constant.b. the growth rate of capital per worker will decrease.d. the growth rate of capital per worker is zero.13. If the saving rate increases in the Solow growth model, then in the steady state the growth rate of capital per worker is: a. cons
48、tant. c. zero.b. unchanged. d. all of the above. 14. If the saving rate increases in the Solow growth model, then in the steady state the growth rate of capital per worker is: a. higher. c. lower.b. unchanged. d. rising.15. If the saving rate increases in the Solow growth model, then in the steady s
49、tate:a. capital per worker and the growth of capital will be higher. c. capital per worker will be higher but the growth rate of capital will be lower. b. capital per worker will be higher but the growth rate of capital will remain the same at zero. d. capital per worker will be lower but the growth rate of capital will be higher.16. In the Solow growth model during the transition an increase in technology:a. lowers the growth rate of capital per worker. c. raises the growth rate of capital per worker.b. does not change the growth rate of capital per worker. d.
