EC 302 Test #3 Practice Questions With
Correct Answers
A ||change ||in ||which ||of ||the ||following ||can ||change ||the ||long-run ||growth ||rate ||of ||the ||
economy ||in ||the ||Romer ||model? ||- ||CORRECT ||ANSWER✔✔-the ||fraction ||of ||the ||population ||
engaged ||in ||and ||the ||productiveness ||or ||research ||and ||development
The ||key ||assumption ||of ||the ||Romer ||model ||that ||allows ||an ||explanation ||of ||sustained ||growth
||in ||output ||per ||person ||is ||_______________. ||- ||CORRECT ||ANSWER✔✔-technology ||is ||
nonrivalrous
Output ||per ||person ||is ||170 ||in ||an ||economy ||in ||which ||15 ||percent ||of ||the ||population ||are ||
engaged ||in ||research ||and ||development, ||where ||their ||productivity ||is ||0.002, ||and ||the ||total ||
population ||size ||is ||100 ||million. ||If ||this ||economy ||is ||on ||a ||balanced ||growth ||path, ||then ||
output ||per ||person ||in ||the ||next ||period ||will ||be ||_________. ||- ||CORRECT ||ANSWER✔✔-177.3
In ||the ||Romer ||model, ||as ||more ||labor ||is ||devoted ||to ||research ||and ||development ||there ||is ||- ||
CORRECT ||ANSWER✔✔-an ||immediate ||decrease ||in ||output ||per ||capita ||and ||a ||permanent ||
increase ||in ||output ||per ||capita
The ||after-tax ||income ||is ||received ||by ||the ||household ||sector ||is ||known ||as ||______________.
||- ||CORRECT ||ANSWER✔✔-disposable ||income
An ||intertemporal ||budget ||constraint ||is ||downward ||sloping ||due ||to ||_______________. ||- ||
CORRECT ||ANSWER✔✔-the ||trade-off ||between ||current ||and ||future ||consumption
r: ||0.04
Y1: ||$10000
Y2: ||$40000
Correct Answers
A ||change ||in ||which ||of ||the ||following ||can ||change ||the ||long-run ||growth ||rate ||of ||the ||
economy ||in ||the ||Romer ||model? ||- ||CORRECT ||ANSWER✔✔-the ||fraction ||of ||the ||population ||
engaged ||in ||and ||the ||productiveness ||or ||research ||and ||development
The ||key ||assumption ||of ||the ||Romer ||model ||that ||allows ||an ||explanation ||of ||sustained ||growth
||in ||output ||per ||person ||is ||_______________. ||- ||CORRECT ||ANSWER✔✔-technology ||is ||
nonrivalrous
Output ||per ||person ||is ||170 ||in ||an ||economy ||in ||which ||15 ||percent ||of ||the ||population ||are ||
engaged ||in ||research ||and ||development, ||where ||their ||productivity ||is ||0.002, ||and ||the ||total ||
population ||size ||is ||100 ||million. ||If ||this ||economy ||is ||on ||a ||balanced ||growth ||path, ||then ||
output ||per ||person ||in ||the ||next ||period ||will ||be ||_________. ||- ||CORRECT ||ANSWER✔✔-177.3
In ||the ||Romer ||model, ||as ||more ||labor ||is ||devoted ||to ||research ||and ||development ||there ||is ||- ||
CORRECT ||ANSWER✔✔-an ||immediate ||decrease ||in ||output ||per ||capita ||and ||a ||permanent ||
increase ||in ||output ||per ||capita
The ||after-tax ||income ||is ||received ||by ||the ||household ||sector ||is ||known ||as ||______________.
||- ||CORRECT ||ANSWER✔✔-disposable ||income
An ||intertemporal ||budget ||constraint ||is ||downward ||sloping ||due ||to ||_______________. ||- ||
CORRECT ||ANSWER✔✔-the ||trade-off ||between ||current ||and ||future ||consumption
r: ||0.04
Y1: ||$10000
Y2: ||$40000
