Test
Development Economics IIB by Alex Gorashov
Preguntas del test (25)
1The Solow model emphasizes the role of which of the following factors of production?
- Aland
- Blabour
- Ccapital
- Dnatural resources
2In an exogenous growth model, growth is caused by
- Acapital accumulation
- Bgovernment policies
- Chuman capital accumulation
- Dforces that are not explained by the model itself
3Suppose that two countries share identical levels of total factor productivity, identical labor force growth rates and identical savings rates. According to the Solow model
- Athe country with the greater initial level of output per worker will grow more rapidly
than the country with the smaller initial level of output per worker. - Bthe country with the smaller initial level of output per worker will grow more rapidly
than the country with the greater initial level of output per worker. - Cboth countries will have the same growth rates of output per worker, even if they start
out with different levels of output per worker - Dif both countries start out with different levels of income per worker, both countries
may have different growth rates of output per worker, but we cannot be certain which
country will have the higher growth rate of output per worker.
- Athe country with the greater initial level of output per worker will grow more rapidly
4In the endogenous growth model, an increase in a worker’s level of human capital
- Aincreases the amount of additional human capital she can produce, but does not
increase the amount of output she can produce. - Bincreases the amount of additional output she can produce, but does not increase the
amount of human capital she can produce. - Cincreases both the amount of additional human capital she can produce and the amount of output she can produce.
- Dincreases neither the amount of additional human capital she can produce nor the
amount of output she can produce.
- Aincreases the amount of additional human capital she can produce, but does not
5According to Alesina and Dollar (2000) donor countries tend to allocate more aid to:
- Arecipient countries with a low level of Human Development Index
- Brecipient countries that used to be former colonies of the donor and that are not necessarily poor
- Crecipient countries with a high level of population
- Dnone of the previous answers
6Burnside and Dollar (2000) state that foreign aid can be effective if allocated where good policies are in place. How do they empirically measure the good policies?
- Acontrolling for the level of democracy inside the recipient country
- Busing a variable that accounts for the type of fiscal policy implemented by the recipient government
- Cusing a composite index that accounts for the fiscal, monetary and foreign policy
- Dcontrolling for the level of corruption inside the recipient country
7According to the Harrod-Domar model, an increase in growth rates depends on:
- AIncrease in capital-output ratio
- BDecrease in capital-output ratio
- CIncrease in marginal propensity to consume
- DNone of the above
8Without adjusting for "purchasing power parity", Real GDP tends to understate income in developing economies by
- AIgnoring government deficit spending
- BOmitting non-market transactions
- CUnderestimating saving
- DAll of the above
9The Solow Growth Model predicts that
- AThe rich will get richer and the poor will get poorer
- BRich nations will grow faster than poor nations
- CPoor nations will grow faster than rich nations
- DThe rich will get poorer and the poor will get richer
10If the central prediction of the Solow Growth Model is valid,
- AEconomic freedom as measured by the Heritage Foundation Index will decrease
- BPopulation growth rates in rich countries will increase
- CPer capita Real GDP differences among nations will increase
- DPer capita Real GDP differences among nations will diminish
11The new growth theory attempts to explain
- Athe rate of capital accumulation within a country
- Bthe rate of population growth within a country
- Cwhy there are diminishing returns to capital
- Dthe factors that determine the size of the Solow residual
12Lack of investment in strong education and health care systems:
- ACauses a deterioration in human capital and an increase in physical capital
- BCauses a deterioration in human capital and a decline in labor productivity
- CIncreases human capital and a cause a decline in labor productivity
- DCauses a decline in physical capital and a decline in labour productivity
13According to Burnside and Dollar (2000):
- AForeign aid has a positive impact on growth if associated with sound policies but with diminishing returns
- BForeign aid does not have a positive impact on growth but with increasing returns
- CForeign aid has always a positive impact on growth but with diminishing returns
- DForeign aid has a positive impact on growth if associated with sound policies but with increasing returns
14Per Capita GDP is a good proxy for the growth of a country because:
- Ais negatively correlated with Life expectancy
- Bis positively correlated with Infant Mortality
- Cis negatively correlated with Adult Literacy
- Dnone of the above
15According to Galor and Zeira (1993):
- AIndividuals who inherit less than f work as unskilled but their descendants in future generations will work as skilled workers
- BIndividuals who inherit more than f invest in human capital and all their descendants will remain in the skilled labour sector in future generations
- CIndividuals who inherit less than g may invest in human capital but after some generations their descendants become skilled workers
- DIndividuals who inherit less than f work as unskilled and so are their descendants in future generations
16If a war destroys a large portion of a country's capital stock but the saving rate is unchanged, the Solow model predicts output will grow and that the new steady state will approach:
- Athe same output level as before
- Ba higher output level than before
- Cthe Golden Rule output level
- Da lower output level than before
17What conclusion can be reached from the following data on income shares?
Percentage of Income Received by
Lowest 40% Highest 20%
Bangladesh 17.3 45.3
Indonesia 14.4 49.4- ABangladesh has adopted a strategy of redistribution with growth
- Babsolute poverty is more widespread in Bangladesh
- Cthe size distribution of income is more unequal in Indonesia
- Dgrowth in Bangladesh is calculated using poverty weights rather than income weights
18In the Harrod-Domar equation g = s/v, v is defined as
- Athe change in the country’s capital stock
- Bthe ratio of the country’s capital stock to its output
- Cthe value of the country’s capital stock
- Dnone of the above
19According to the Harrod-Domar model, an increase in growth rates depends on
- AIncrease in marginal propensity to consume
- BIncrease in capital-output ratio
- CDecrease in capital-output ratio
- DNone of the above
20In the Solow growth model, if investment exceeds depreciation, the capital stock will
______ and output will ______ until the steady state is attained.- Aincrease; decrease
- Bdecrease; increase
- Cdecrease; decrease
- Dincrease; increase
21Burnside and Dollar (2000) state that foreign aid can be effective if allocated where good policies are in place. How do they empirically measure the good policies?
- Ausing a composite index that accounts for the fiscal, monetary and foreign policy
- Bcontrolling for the level of democracy inside the recipient country
- Cusing a variable that accounts for the type of fiscal policy implemented by the recipient government
- Dcontrolling for the level of corruption inside the recipient country
22With perfect income equality the Gini coefficient in a country would be :
- A1
- Binfinity
- C0
- D0.5
23The concept of Purchasing Power Parity:
- Ais based upon the cost of hamburgers around the world
- Bis based upon the nominal exchange rate
- Cis based upon the market exchange rate
- Dis based upon the cost of the same market basket of goods in different countries
24Compared to the developed countries, the LDCs have
- Ahigher birth rates and lower death rates
- Blower birth rates and lower death rates
- Chigher birth rates and higher death rates
- Dlower birth rates and higher death rates
25One study found that the Gini coefficient for Egypt .403 . was virtually the same as that for Australia .404. From this information one can conclude that Egypt and Australia:
- Ahad virtually the same number of households in absolute poverty
- Bhad virtually the same percentage of households in absolute poverty
- Chad virtually the same Human Development Index level
- Dnone of the above
Información
- Descripción
- Test sobre Development Economics IIB by Alex Gorashov, creado por Alex Gorashov el 24/02/2015.
- Autor
- Alex Gorashov
- Idioma
- English
- Visitas
- 75
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