Which of the following countries annual growth rate of GDP per capita between 1988 and 2010 was closest to that of the United States?
A. China
B. Egypt
C. Indonesia
D. Tanzania
E. Thailand
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Which of the following economists did NOT significantly contribute to the debate on exogenous versus endogenous growth?
A. Robert Barro
B. Gregory Mankiw
C. Robert Lucas
David Ricardo
E. Paul Romer
A production function that assumes a diminishing marginal product of capital
A. generates a straight savings line
B. ensures that the savings line is always above the investment requirement line
C. ensures that the savings line and the investment requirement line cross
D. is essential to the endogenous growth model
E. violates important microeconomic principles
The concept of diminishing marginal returns implies that
A. output cannot decrease as long as labor is substituted for capital
B. output decreases if either labor or capital is decreased
C. output increases but at a decreasing rate as the amount of labor is increased and the amount of capital remains fixed
D. if the capital stock is kept constant, output cannot increase even if more labor is available
E. output increases but only if the amounts of both labor and capital increase
The assumption of constant returns to capital alone implies that larger firms should be more efficient than smaller firms. The reason this doesn't necessarily imply a tendency toward monopolization is that
A. most industries are perfectly competitive in nature
B. firms have more inputs than just capital
C. constant returns to capital alone still implies decreasing returns to all factors of production taken together
D. if one firms increases its use of capital, other firms can also capture some of the production benefits of the new capital through spillover effects
E. none of the above
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