Question 1

Growth accounting,popularized by Robert Solow,attempts to attribute a change in aggregate output

Accepted Answer

Growth accounting separates changes in aggregate output between changes in total factor productivity (how efficiently inputs are being used) and changes in the supplies of factors of production (capital, labor, etc.).

Question 2

Malthus was too pessimistic because he did not foresee the effects of

Accepted Answer

Malthus did not anticipate the technological advancements and increases in capital stock that would significantly boost agricultural productivity and overall production, countering his predictions of inevitable resource scarcity.

Question 3

One plausible explanation of the U.S. productivity slowdown starting in 1973 is that it is an artifact of mismeasurement. This explanation would require that production of

Accepted Answer

The explanation posits that the mismeasurement is related to the underestimation of services production, suggesting that option C is the correct choice.

Question 4

The Solow residual attempts to measure the amount of output not explained by

Accepted Answer

The Solow residual is calculated as the difference between actual output and the amount of output that can be explained by labor and capital inputs. It is therefore intended to measure the contribution of technological progress or total factor productivity, which is not directly explained by labor and capital. Economic projections and the amount of a nation's human capital are not directly related to the Solow residual.

Question 5

Growth in the Solow residual was slowest in the

Accepted Answer

The 1970s was a decade of slow economic growth in many countries, including the United States. This was partly due to higher oil prices, inflation, and a decline in productivity growth, which is measured by the Solow residual. Therefore, the correct choice is C.

Question 6

In a Malthusian world,what events would improve permanently the standard of living,as measured by output per capita?

Accepted Answer

The answer of In a Malthusian world,what events would improve...

Question 7

All of the following increase total factor productivity except

Accepted Answer

While new inventions, management techniques, and favorable government regulations can all lead to increased efficiency and productivity, simply adding more capital (such as machinery or equipment) does not necessarily result in an increase in total factor productivity. Productivity relies on a combination of factors, including human capital and efficient use of existing resources, not just the amount of physical capital available.

Question 8

Growth in the Solow residual was fastest in the

Accepted Answer

The answer of Growth in the Solow residual was fastest...

Question 9

One plausible explanation of the U.S. productivity slowdown starting in 1973 is that it was a result of the increase in the relative price of energy. This explanation would require that,in light of higher energy costs,the

Accepted Answer

Higher energy costs would mean that the existing capital stock is less productive than previously thought, leading to an overestimation of its value.

Question 10

In a Malthusian world,what event would improve temporarily the standard of living,as measured by output per capita?

Accepted Answer

The answer of In a Malthusian world,what event would improve...

Question 11

In more modern times as opposed to the times of Malthus,higher standards of living appear to

Accepted Answer

In modern times, higher standards of living have been associated with decreased mortality rates due to better nutrition, sanitation, and healthcare. This decrease in mortality rates is often accompanied by a decrease in birth rates due to factors such as greater access to education and family planning, as well as a shift towards urbanization and fewer children being perceived as necessary for economic security. Therefore, the best choice is B, which states that higher standards of living decrease death rates and also decrease birth rates.

Question 12

For the production function,Y = zK0.36N0.64,if measured output is Y ,measured capital inputK is ,and measured labor input is N ,then the Solow residual would be equal to

Accepted Answer

The answer of For the production function,Y = zK0.36N0.64,if measured...

Question 13

In a Malthusian world,what would improve the standard of living temporarily?

Accepted Answer

The answer of In a Malthusian world,what would improve the...

Question 14

If an epidemic hits a Malthusian economy,the immediate consequence is

Accepted Answer

In a Malthusian economy, population growth is limited by resources. An epidemic reduces the population, which temporarily increases the per capita availability of resources, leading to an increase in the standard of living.

Question 15

In the Malthusian model,state-mandated population control policies are likely to

Accepted Answer

In the Malthusian model, population control policies reduce population growth, leading to a smaller equilibrium population size. This allows more resources per capita, increasing the equilibrium level of consumption per worker.

Question 16

Which of the following increases total factor productivity?

Accepted Answer

Investment in machinery can increase labor productivity, but it doesn't necessarily increase total factor productivity since it only affects one factor of production. A harsh winter and better access to credit may have indirect effects on productivity, but they don't directly increase total factor productivity. In contrast, new production procedures can improve the efficiency of all factors of production and lead to a higher total factor productivity.

Question 17

In the Malthusian model,improvements in health care lead to

Accepted Answer

In the Malthusian model, improvements in health care increase population growth, which eventually leads to lower per-capita production due to limited resources.

Question 18

In a Malthusian world,why is misery recurrent?

Accepted Answer

In a Malthusian world, where population growth outstrips resources, mortality rates depend on the standard of living. If the standard of living is low, then mortality rates will be high, leading to recurrent misery as the population size grows faster than the available resources.

Question 19

If an epidemic hits a Malthusian economy,the long-term consequence is

Accepted Answer

The answer of If an epidemic hits a Malthusian economy,the...

Question 20

In a Malthusian world,what would improve the standard of living permanently?

Accepted Answer

In a Malthusian world, the population is growing faster than the available resources, so the only way to improve the standard of living permanently is by controlling the population growth through birth control measures. A war may temporarily reduce the population, but it will also disrupt the economy and infrastructure. A new medical drug may improve health but can also lead to population growth and strain on resources. Democracy can lead to better governance and policies but does not directly address the issue of overpopulation.

Quiz 7: Economic Growth: Malthus and Solow