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Problemset
Title
Introductory
Text
Chapter 3 Quiz
Question 1
Differences in the amount of capital per worker explain a large difference
in ________ among countries.
Hint:
Type:
Multiple Choice
Question 2
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incorrect
answers:
Answer
Graded As
GDP
Correct
Population
Incorrect
Work force
Incorrect
Technology
Incorrect
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Which of the following is NOT a characteristic of physical capital?
Hint:
Type:
Feedback for
Multiple Choice
all
incorrect
answers:
Answer
Graded As
It is rival.
Incorrect
It wears out over time.
Incorrect
It is not produced.
Correct
It is productive.
Incorrect
Question 3
Which of the following are rival in their use?
I. Sunlight
II. Fashion
Type:
Multiple Choice III. Gas station
Hint:
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answers:
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Answer
Graded As
I only
Incorrect
I and II only
Incorrect
III only
Correct
II and III only
Incorrect
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Question 4
Which of the following most likely exhibits diminishing marginal product?
I. A shoe factory currently uses 4 machines to produce 20 units of output.
When one more machine is added, output increases to 25.
Type:
Multiple Choice II. A student studies for 10 hours and receives a 90 on his exam. For the
next exam, he studies for 12 hours and receives a 92.
III. A restaurant employs one chef who can produce 10 meals per hour.
After a second chef is hired they specialize tasks and output increases to 25
meals per hour.
Hint:
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Question 5
Type:
Multiple Choice
Answer
Graded As
I and III only
Incorrect
II only
Correct
II and III only
Incorrect
III only
Incorrect
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What is labor's share of income estimated to be when the only other input
to production is physical capital?
Hint:
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answers:
Answer
Graded As
1/3
Incorrect
1/2
Incorrect
2/3
Correct
0
Incorrect
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Question 6
What governs the accumulation of capital?
I. Investment
II. Productivity
Type:
Multiple Choice III. Depreciation
Hint:
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answers:
Answer
Graded As
I only
Incorrect
II and III only
Incorrect
I and III only
Correct
I, II and III
Incorrect
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Question 7
Suppose that a constant 20% of output is invested and capital stock
depreciates at a constant rate of 0.8% and population is constant. If the
economy exhibits a Cobb-Douglas production function, with a= 1/3 and
Type:
Multiple Choice A=1, and the current level of capital per worker is 125, what will happen to
capital stock?
Hint:
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answers:
Answer
Graded
As
Capital stock will increase.
Incorrect
Capital stock will decrease.
Incorrect
Capital stock will be at its steady state level.
Correct
It cannot be determined from the given
information.
Incorrect
Question 8
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Suppose that a country is in a steady state when numerous tornados hit and
destroy much of their capital, but nothing else is affected. What should we
expect to happen?
Type:
Multiple Choice Hint:
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answers:
Answer
Graded
As
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The country's output will jump above its steadystate and then capital stock will slowly fall.
Incorrect
The country's output will fall below its steady-state Correct
and then capital stock, and hence output, will
slowly rise.
Question 9
Type:
Multiple Choice
Question 10
The country's steady-state level of output will fall,
but the country's capital stock will fall to reach it.
Incorrect
The country's steady-state level of output will rise,
but the country's capital stock will rise to reach it.
Incorrect
Suppose we are using a model to predict the grades that each member of a
class will receive. Which of the following variables are endogenous?
Hint:
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Answer
Graded As
Years of previous schooling.
Incorrect
The birthplace of the student.
Incorrect
The average grade received on the exam.
Correct
None of the above.
Incorrect
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Which of the following number of steady states is NOT possible?
Hint:
Type:
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Multiple Choice
all
incorrect
answers:
Answer
Graded As
0
Incorrect
2
Incorrect
Infinite steady states.
Incorrect
None, all of the above are possible.
Correct
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