1. Aggregate economic output grows by 6% per year. Capital supply grows at 2% per year and labor supply grows at 4% per year. Capital and labor have equal factor shares. What is the growth rate of total factor productivity?

Enter your answer in the space below as a number without a percentage sign. For example, if your answer is "12%" enter "12".___________

2. Suppose banks become more liberal in their note issuance. This would likely cause ___.

Group of answer choices

deflationary pressures

no change in prices

inflationary pressures

3. Consider two candidates for indenture, with the following characteristics.

Abram: 20 year old man

Beth: 20 year old woman

Everything else equal, who would most likely have a relatively longer indenture term than the other?

Group of answer choices

We can't say

Abram

Beth

4. Which of the following would most likely increase total surplus in society? Select all that apply.

Group of answer choices

Lower taxes

TFP advance

Cheaper transportation

None of these!

More social transfer payments

Lower tariffs

5.

"The diagram below shows that high settler mortality caused low institutional quality in the 20th century (as proxied by the protection against risk of expropriation index)." 10 USA NZL CAN AUS SGP HKG ND GMB 8 MYS GAB MERTIS IDN MLT COL JAM ZAF TZA CMR GIN Average protection against expropriation risk, 1985-95 6 LKA DOME GHA ETSUAK RIEN SLE NGA HND NIC AGO NER COG BEA MDG SDN MLI HTI ZAR 8 Log of Settler Mortality FIGURE 3. FIRST-STAGE RELATIONSHIP BETWEEN SETTLER MORTALITY AND EXPROPRIATION RISK True O False