Question 1

A higher saving rate leads to a:

Accepted Answer

The answer of A higher saving rate leads to a:
...

Question 2

In the Solow growth model, if investment exceeds depreciation, the capital stock will ______ and output will ______ until the steady state is attained.

Accepted Answer

The answer of In the Solow growth model, if investment...

Question 3

In the Solow growth model with no population growth and no technological progress, the higher the steady capital-per-worker ratio, the higher the steady-state:

Accepted Answer

In the Solow growth model with no population growth and no technological progress, the steady-state level of output per worker depends on the steady-state capital-per-worker ratio. Therefore, the higher the steady capital-per-worker ratio, the higher the steady-state level of output per worker.

Question 4

Exhibit: Steady-State Capital-Labor Ratio  In this graph, the capital-labor ratio that represents the steady-state capital-ratio is:

Accepted Answer

In the graph, the steady-state capital-labor ratio occurs where the investment line intersects the depreciation line. This intersection point occurs at k₂.

Question 5

In the Solow growth model, if investment is less than depreciation, the capital stock will ______ and output will ______ until the steady state is attained.

Accepted Answer

The answer of In the Solow growth model, if investment...

Question 6

The Solow model shows that a key determinant of the steady-state ratio of capital to labor is the:

Accepted Answer

The capital elasticity in the production function determines the steady-state ratio of capital to labor in the Solow model.

Question 7

The formula for steady-state consumption per worker (c*) as a function of output per worker and investment per worker is:

Accepted Answer

The correct formula for steady-state consumption per worker (c*) is c* = f(k*) - δk*, where f(k*) represents output per worker, and δk* represents investment per worker needed to maintain the capital stock (k*) steady. The symbols in the options seem to be formatting errors, but option A conceptually matches the correct formula by indicating that consumption per worker is the output per worker minus investment per worker.

Question 8

In the Solow growth model, the steady-state occurs when:

Accepted Answer

The answer of In the Solow growth model, the steady-state...

Question 9

In the Solow growth model, with a given production function, depreciation rate, no technological change, and no population growth, a higher saving rate produces a:

Accepted Answer

The answer of In the Solow growth model, with a...

Question 10

In the Solow growth model of Chapter 8, the economy ends up with a steady-state level of capital:

Accepted Answer

The answer of In the Solow growth model of Chapter...

Question 11

Starting from a steady-state situation, if the saving rate increases, the rate of growth of capital per worker will:

Accepted Answer

The answer of Starting from a steady-state situation, if the...

Question 12

If the national saving rate increases, the:

Accepted Answer

The answer of If the national saving rate increases, the:
...

Question 13

The Golden Rule level of capital accumulation is the steady state with the highest level of:

Accepted Answer

The answer of The Golden Rule level of capital accumulation...

Question 14

Exhibit: Capital-Labor Ratio and the Steady State In this graph, capital-labor ratio k₂ is not the steady-state capital-labor ratio because:

Accepted Answer

The answer of Exhibit: Capital-Labor Ratio and the Steady State...

Question 15

Examination of recent data for many countries shows that countries with high saving rates generally have high levels of output per person because:

Accepted Answer

The answer of Examination of recent data for many countries...

Question 16

If a war destroys a large portion of a country's capital stock but the saving rate is unchanged, the Solow model predicts that output will grow and that the new steady state will approach:

Accepted Answer

The answer of If a war destroys a large portion...

Question 17

Among the four countries-the United States, the United Kingdom, Germany, and Japan-the one that experienced the most rapid growth rate of output per person between 1948 and 1972 was:

Accepted Answer

The answer of Among the four countries-the United States, the...

Question 18

Assume two economies are identical in every way except that one has a higher saving rate. According to the Solow growth model, in the steady state the country with the higher saving rate will have ______ level of output per person and ______ rate of growth of output per worker as/than the country with the lower saving rate.

Accepted Answer

According to the Solow growth model, a higher saving rate leads to a higher level of capital accumulation, which in turn leads to a higher level of output per person. Additionally, in the steady state, the country with the higher saving rate will also have a higher rate of growth of output per worker due to the increased capital accumulation. Therefore, the answer is D, a higher level of output per person, and a higher rate of growth of output per worker.

Question 19

Exhibit: The Capital-Labor Ratio In this graph, starting from capital-labor ratio k₁, the capital-labor ratio will:

Accepted Answer

The answer of Exhibit: The Capital-Labor Ratio  In this...

Question 20

The formula for the steady-state ratio of capital to labor (k*), with no population growth or technological change, is s:

Accepted Answer

The answer of The formula for the steady-state ratio of...

Quiz 8: Economic Growth I: Capital Accumulation and Population Growth

A higher saving rate leads to a:

In the Solow growth model, if investment exceeds depreciation, the capital stock will and output will until the steady state is attained.

In the Solow growth model with no population growth and no technological progress, the higher the steady capital-per-worker ratio, the higher the steady-state:

Exhibit: Steady-State Capital-Labor Ratio In this graph, the capital-labor ratio that represents the steady-state capital-ratio is:

In the Solow growth model, if investment is less than depreciation, the capital stock will and output will until the steady state is attained.

The Solow model shows that a key determinant of the steady-state ratio of capital to labor is the:

The formula for steady-state consumption per worker (c*) as a function of output per worker and investment per worker is:

In the Solow growth model, the steady-state occurs when:

In the Solow growth model, with a given production function, depreciation rate, no technological change, and no population growth, a higher saving rate produces a:

In the Solow growth model of Chapter 8, the economy ends up with a steady-state level of capital:

Starting from a steady-state situation, if the saving rate increases, the rate of growth of capital per worker will:

If the national saving rate increases, the:

The Golden Rule level of capital accumulation is the steady state with the highest level of:

Exhibit: Capital-Labor Ratio and the Steady State In this graph, capital-labor ratio k₂ is not the steady-state capital-labor ratio because:

Examination of recent data for many countries shows that countries with high saving rates generally have high levels of output per person because:

If a war destroys a large portion of a country's capital stock but the saving rate is unchanged, the Solow model predicts that output will grow and that the new steady state will approach:

Among the four countries-the United States, the United Kingdom, Germany, and Japan-the one that experienced the most rapid growth rate of output per person between 1948 and 1972 was:

Exhibit: The Capital-Labor Ratio In this graph, starting from capital-labor ratio k₁, the capital-labor ratio will:

The formula for the steady-state ratio of capital to labor (k*) , with no population growth or technological change, is s:

Quiz 8: Economic Growth I: Capital Accumulation and Population Growth

A higher saving rate leads to a:

In the Solow growth model, if investment exceeds depreciation, the capital stock will ______ and output will ______ until the steady state is attained.

In the Solow growth model with no population growth and no technological progress, the higher the steady capital-per-worker ratio, the higher the steady-state:

Exhibit: Steady-State Capital-Labor Ratio In this graph, the capital-labor ratio that represents the steady-state capital-ratio is:

In the Solow growth model, if investment is less than depreciation, the capital stock will ______ and output will ______ until the steady state is attained.

The Solow model shows that a key determinant of the steady-state ratio of capital to labor is the:

The formula for steady-state consumption per worker (c*) as a function of output per worker and investment per worker is:

In the Solow growth model, the steady-state occurs when:

In the Solow growth model, with a given production function, depreciation rate, no technological change, and no population growth, a higher saving rate produces a:

In the Solow growth model of Chapter 8, the economy ends up with a steady-state level of capital:

Starting from a steady-state situation, if the saving rate increases, the rate of growth of capital per worker will:

If the national saving rate increases, the:

The Golden Rule level of capital accumulation is the steady state with the highest level of:

Exhibit: Capital-Labor Ratio and the Steady State In this graph, capital-labor ratio k2 is not the steady-state capital-labor ratio because:

Examination of recent data for many countries shows that countries with high saving rates generally have high levels of output per person because:

If a war destroys a large portion of a country's capital stock but the saving rate is unchanged, the Solow model predicts that output will grow and that the new steady state will approach:

Among the four countries-the United States, the United Kingdom, Germany, and Japan-the one that experienced the most rapid growth rate of output per person between 1948 and 1972 was:

Exhibit: The Capital-Labor Ratio In this graph, starting from capital-labor ratio k1, the capital-labor ratio will:

The formula for the steady-state ratio of capital to labor (k*) , with no population growth or technological change, is s:

In the Solow growth model, if investment exceeds depreciation, the capital stock will and output will until the steady state is attained.

In the Solow growth model, if investment is less than depreciation, the capital stock will and output will until the steady state is attained.

Exhibit: Capital-Labor Ratio and the Steady State In this graph, capital-labor ratio k₂ is not the steady-state capital-labor ratio because:

Exhibit: The Capital-Labor Ratio In this graph, starting from capital-labor ratio k₁, the capital-labor ratio will: