Question 1

According to the Harrod-Domar growth model,suppose that the saving rate is 12 percent,the capital-output ratio is 2,and the depreciation rate d is 4 percent,what is the expected long-run growth rate of GDP?

Accepted Answer

A)   0 percent.
B)   1 percent.
C)   2 percent.
D)   3 percent.

Question 2

Using the Harrod-Domar growth model,suppose one economy has to maintain a growth rate of GDP of 10 percent per year in order to avoid a decline in the average standard of living.Assume in this economy,the saving rate s is fixed at 15%,the capital-output ratio v is 3 and the depreciation rate d is 5%,the gap of ________ in the growth rate of GDP can be provided by foreign aid.

Accepted Answer

A)   5 percent.
B)   10 percent.
C)   15 percent.
D)   Foreign aid has no help in this situation.

Question 3

The Neoclassical growth model assumes:

Accepted Answer

A)   diminishing marginal returns.
B)   population is constant.
C)   endogenous technological improvement.
D)   labor is in surplus.

Question 4

Capital fundamentalism refers to the belief that the most important proximate source of economic growth is the accumulation of ________.

Accepted Answer

A)   physical capital
B)   human capital
C)   labor.
D)   technology.

Question 5

In the Lewis model,after the structural change,the output from the subsistence sector will ________ and the output from the capitalist sector will ________.

Accepted Answer

A)   decrease; increase
B)   remain the same; increase
C)   increase; increase
D)   increase; decrease

Question 6

In the Lewis model,in the capitalist sector,worker are paid the value of marginal product of labor is

Accepted Answer

A)   zero.
B)   positive.
C)   negative.
D)   determined in the labor market.

Exam 4: Economic Growth Theory in Historical Perspective

In the Lewis model,in the capitalist sector,worker are paid the value of marginal product of labor is

Correct Answer
verified

Capital fundamentalism refers to the belief that the most important proximate source of economic growth is the accumulation of ________.

Correct Answer
verified

The Neoclassical growth model assumes:

Correct Answer
verified

Correct Answer
verified

In the Lewis model,after the structural change,the output from the subsistence sector will and the output from the capitalist sector will .

Correct Answer
verified

According to the Harrod-Domar growth model,suppose that the saving rate is 12 percent,the capital-output ratio is 2,and the depreciation rate d is 4 percent,what is the expected long-run growth rate of GDP?

Correct Answer
verified

Exam 4: Economic Growth Theory in Historical Perspective

In the Lewis model,in the capitalist sector,worker are paid the value of marginal product of labor is

Correct AnswerverifiedShow Answer

Capital fundamentalism refers to the belief that the most important proximate source of economic growth is the accumulation of ________.

Correct AnswerverifiedShow Answer

The Neoclassical growth model assumes:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In the Lewis model,after the structural change,the output from the subsistence sector will ________ and the output from the capitalist sector will ________.

Correct AnswerverifiedShow Answer

According to the Harrod-Domar growth model,suppose that the saving rate is 12 percent,the capital-output ratio is 2,and the depreciation rate d is 4 percent,what is the expected long-run growth rate of GDP?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

In the Lewis model,after the structural change,the output from the subsistence sector will and the output from the capitalist sector will .

Correct Answer
verified

Correct Answer
verified