he ____________________ describes how any amount of capital and labour can be combined to

generate output
Select one:
a. Capital-Output Ratio
b. Output Elasticity
c. Production Function
d. Returns to Scale
________ effects occur when there is an increase in the ability of factors inputs in a production
process increase
Select one:
a. Structural effects
b. Growth effects
c. Technology effects
d. Change effects
The proposal to increase the standard of living of the people according to Malthus is
Select one:
a. population control
b. mobility of labour
c. increase in international trade
d. capital accumulation
A balanced growth path is said to occur when endogenous variables in a growth model grows at
__________ rate
Select one:
a. increasing
b. decreasing
c. constant
d. zero
The Romer growth model explains long-run growth in an economy for each of the following
reasons except
Select one:
a. the nonrivalry of objects in the production process.
b. increasing returns to ideas and objects together.
c. the absence of diminishing returns to the existing stock of ideas.
d. the reliance of per capita output on the stock of ideas.
The ____________________ describes how any amount of capital and labour can be combined
to generate output
Select one:
 a. Capital-Output Ratio
b. Output Elasticity
c. Production Function
d. Returns to Scale
______________ effects occur when there is an increase in the ability of factors inputs in a
production process increase
Select one:
a. Structural effects
b. Growth effects
c. Technology effects
d. Change effects
Increasing returns to scale implies that
Select one:
a. the addition of output elasticity of capital and labour is equal to one
b. the addition of output elasticity of capital and labour is less than one
c. the addition of output elasticity of capital and labour is greater than one
d. the addition of output elasticity of capital and labour is unknown
The key insight in the Solow model is that:
Select one:
a. savings have no impact on economic growth.
b. capital accumulation contributes to economic growth
c. saving rates are determined in a particular manner.
d. capital depreciation enhances economic growth.
The increase in output per worker is known as
Select one:
a. wages and salary
b. labour efficiency
c. productivity growth
d. total factor productivity
The constant returns to scale implies that
Select one:
a. increasing the amount of factor inputs will increase the amount of output by lesser
proportion
b. increasing the amount of factor inputs will increase the amount of output by greater
proportion
 c. increasing the amount of factor inputs will do nothing to the amount of output irrespective
proportion of increase
d. increasing the amount of factor inputs will increase the amount of output by same
proportio
Difference between Real and Nominal GDP is
Select one:
a. Change in price level from base year to current year
b. None of the above.
c. That real GDP is always smaller than Nominal GDP
d. Measured by excluding some of the sectors
Which of the following best embodies the principle of nonrivalry?
Select one:
a. the formulas in a spreadsheet
b. the concept of scarcity
c. a cell phone
d. increasing returns to scale
The fundamental rationale for setting up and analysing the production model is
Select one:
a. the determination of per capita output and the total output
b. the determination of total output rather than the per capita output
c. the determination of per capita output rather than total output
d. the determination of the amount of raw materials and finished products that can be
produced
Some of the means of generating incentives for the innovator in order to encourage invention of
new ideas include all but one of the following
Select one:
a. patents
b. trade secrets
c. copyrights
d. bursary
One of the following is not among the three principal elements that the Romer model
incorporates
Select one:
a. increasing returns to scale
b. perfect competition
c. objects
 d. ideas
The four factors for Total Factor Productivity differences among countries are
Select one:
a. land, labour, capital, entrepreneur
b. recession, depression, recovery, boom
c. human capital, technology, institution differences, resource misallocation
d. rent, wage, rate, profit
The Inada condition states that
Select one:
a. the marginal product of an input approaches zero as the value of the input approaches
infinity
b. the marginal product of an input approaches infinity as the value of the input approaches
infinity
c. the marginal product of an input approaches infinity as the average product approaches
infinity
d. the marginal product of an input approaches zero as the value of the input approaches zero
The production function exhibits each of the following properties except
Select one:
a. constant returns to scale in capital and labour.
b. increasing returns to scale in all inputs.
c. constant returns to scale in ideas
d. diminishing marginal products of capital and labor.
_______________ is the technique for explaining the factors that determine growth.
Select one:
a. National Income Accounting
b. Growth Accounting
c. Factors of Production
d. Optimization
The Inada condition states that
Select one:
a. the marginal product of an input approaches zero as the value of the input approaches
infinity
b. the marginal product of an input approaches infinity as the value of the input approaches
infinity
c. the marginal product of an input approaches infinity as the average product approaches
infinity
 d. the marginal product of an input approaches zero as the value of the input approaches zero
The production function exhibits each of the following properties except
Select one:
a. constant returns to scale in capital and labour.
b. increasing returns to scale in all inputs.
c. constant returns to scale in ideas
d. diminishing marginal products of capital and labor.
______________ is the technique for explaining the factors that determine growth.
Select one:
a. National Income Accounting
b. Growth Accounting
c. Factors of Production
d. Optimization
The proposal to increase the standard of living of the people according to Malthus is
Select one:
a. population control
b. mobility of labour
c. increase in international trade
d. capital accumulati
The Romer growth model contains each of the following elements except
Select one:
a. beginning stock of ideas.
b. the presence of nonrivalry that leads to sustained growth over time.
c. the presence of increasing returns to scale in labour.
d. the creation of an object as an output.
Which of the following statements is not relevant to the problems with pure competition when
growth models include a knowledge base and the generation of new ideas?
Select one:
a. Firms require economic profits to undertake research and development.
b. Fixed costs are the legacy of original research
c. Perfect competition requires price to equal marginal costs.
d. The nonrivalry characteristic of new ideas generates increasing returns.
Which of the following has not been or is not used by governments to provide firms additional
incentives to pursue original research and development?
Select one:
a. patents
 b. copyrights
c. government subsidies
d. trade secrets
A balanced growth path is said to occur when endogenous variables in a growth model grows at
__________ rate
Select one:
a. zero
b. increasing
c. constant
d. decreasing
Which of the following does not exhibit the characteristic of nonrivalry?
Select one:
a. a flu vaccination
b. the quadratic formula
c. a cake recipe
d. news about last year's Super Bowl winner
Which of the following does not exhibit the characteristic of nonrivalry?
Select one:
a. a flu vaccination
b. the quadratic formula
c. a cake recipe
d. news about last year's Super Bowl winner
The equation Lyt + Lat = N± in the Romer model
Select one:
a. defines the allocation of labour.
b. acts as a resource constraint.
c. has no purpose, as it is a redundant equation.
d. is one of five equations and is important because it contains two unknowns
Which of the following best embodies the principle of nonrivalry?
Select one:
a. a cell phone
b. the concept of scarcity
c. the formulas in a spreadsheet
d. increasing returns to scale
What is the correct thought process for the idea diagram?
Select one:
a. Ideas → Nonrivalry → Increasing returns → Problems with pure competition
b. Nonrivalry →Ideas → Increasing returns → Problems with pure competition
c. Problems with pure competition → Increasing returns → Nonrivalry → Ideas
d. Problems with pure competition → Ideas → Nonrivalry → Increasing returns
The proposal to increase the standard of living of the people according to Malthus is
Select one:
a. capital accumulation
b. population control
c. increase in international trade
d. mobility of labour
Increasing returns to scale occurs when doubling all factor inputs generates more than double of
the output
Select one:
a. True
b. False
he key insight in the Solow model is that:
Select one:
a. saving rates are determined in a particular manner.
b. savings have no impact on economic growth.
c. capital depreciation enhances economic growth.
d. capital accumulation contributes to economic growth
Some of the means of generating incentives for the innovator in order to encourage invention of
new ideas include all but one of the following
Select one:
a. bursary
b. copyrights
c. patents
d. trade secrets
Objects generally are rivalrous due to the following except
Select one:
a. because most inputs can be used only once.
b. because one person's use does not inhibits another person's use.
c. because they can be used only in one place at a time.
d. because of the principle of scarcity.
A balanced growth path is said to occur when endogenous variables in a growth model grows at
__________ rate
Select one:
a. zero
b. increasing
c. constant
d. decreasing
Which of the following has not been or is not used by governments to provide firms additional
incentives to pursue original research and development?
Select one:
a. patents
b. copyrights
c. government subsidies
d. trade secrets
One of the following is not among the three principal elements that the Romer model
incorporates
Select one:
a. objects
b. perfect competition
c. increasing returns to scale
d. ideas
The aggregate production function for the Solow growth model assumes ____(i)____ returns to
scale and ___(ii)___marginal productivity of labour and capital.
Select one:
a. (i) increasing; (ii) diminishing
b. (i) constant; (ii) increasing
c. (i) decreasing; (ii) constant
d. (i) constant; (ii) diminishing
The problems with perfect competition arises as a results of the requirements of perfect
information and marginal cost pricing.
Select one:
a. True
b. False
According to the Solow model, persistently rising living standards can only be explained by:
Select one:
a. saving rates.
b. capital accumulation.
 c. population growth.
d. technological progress.
The fundamental rationale for setting up and analysing the production model is
Select one:
a. the determination of total output rather than the per capita output
b. the determination of per capita output and the total output
c. the determination of the amount of raw materials and finished products that can be
produced
d. the determination of per capita output rather than total output
The four factors for Total Factor Productivity differences among countries are
Select one:
a. rent, wage, rate, profit
b. human capital, technology, institution differences, resource misallocation
c. land, labour, capital, entrepreneur
d. recession, depression, recovery, boom
The Inada condition states that
Select one:
a. the marginal product of an input approaches infinity as the value of the input approaches
infinity
b. the marginal product of an input approaches infinity as the average product approaches
infinity
c. the marginal product of an input approaches zero as the value of the input approaches
infinity
d. the marginal product of an input approaches zero as the value of the input approaches zero
The Romer growth model explains long-run growth in an economy for each of the following
reasons except
Select one:
a. the reliance of per capita output on the stock of ideas.
b. increasing returns to ideas and objects together.
c. the absence of diminishing returns to the existing stock of ideas.
d. the nonrivalry of objects in the production process.
GDP is market value of all the final goods
Select one:
a. Produced by domestic factors of production
b. Produced domestically
c. Produced by all factors of production
 d. All of the above
Which of the following are not examples of "ideas" as discussed in the economics context?
Select one:
a. turning crude oil into plastic
b. turning sand into computer chips
c. turning the roots of potato plants into snack food
d. just-in-time inventory
The increase in output per worker is known as
Select one:
a. productivity growth
b. total factor productivity
c. wages and salary
d. labour efficiency
_______________ is the technique for explaining the factors that determine growth.
Select one:
a. Optimization
b. National Income Accounting
c. Factors of Production
d. Growth Accounting
______________ effects occur when there is an increase in the ability of factors inputs in a
production process increase
Select one:
a. Technology effects
b. Structural effects
c. Growth effects
d. Change effects
The aggregate production function for the Solow growth model assumes ____(i)____ returns to
scale and ___(ii)___marginal productivity of labour and capital.
Select one:
a. (i) constant; (ii) increasing
b. (i) decreasing; (ii) constant
c. (i) increasing; (ii) diminishing
d. (i) constant; (ii) diminishing
Which of the following would not be considered an object in Romer's new growth theory?
Select one:
a. an hour of labour
 b. an antibiotic
c. the theory of relativity
d. molecule of oxygen
The proposal to increase the standard of living of the people according to Malthus is
Select one:
a. population control
b. mobility of labour
c. capital accumulation
d. increase in international trade
The two distinct phases of growth are
Select one:
a. recession and depression
b. stagnation and sustained growth
c. underdeveloped and developed
d. agrarian and industri
The two distinct phases of growth are
Select one:
a. recession and depression
b. stagnation and sustained growth
c. underdeveloped and developed
d. agrarian and industrial
The fundamental rationale for setting up and analysing the production model is
Select one:
a. the determination of total output rather than the per capita output
b. the determination of the amount of raw materials and finished products that can be
produced
c. the determination of per capita output rather than total output
d. the determination of per capita output and the total output