1)Consider the variables a, b, c. Let's say that the growth rates of these variables are given by g(a) = 0.1, g(b) = 0.2, and g(c) = 0.15. Then the growth rate of the variable d =(a²/b)*c^1/3 is approximately equal to ?

2) Which of the following production functions exhibits Constant Returns to Scale (CRS)? (Assume A > 0 is a constant)

a. Y=A - K^1/2L^1/2

b. Y=A*[KL/(K+L)]

c. Y=AK^1/2-L

d. Y=AK^1/10L^2/3

3)Which of the following is a cost of economic growth?

a. job loss in certain sectors

b. increased income inequality

c. global warming

d. All of these are correct.

4)Which of the following statements is False regarding the Solow model:

a. Solow model can explain long-run growth of output.

b. Poor countries can increase the level of output per-capita in steady state by saving more, i.e., increasing the savings rate s

c. An increase in the depreciation rate implies a decrease in the steady state level of capital.

d. Poor countries can reach the income of rich countries since they have less capital stock and that implies a higher growth rate of output compared to rich countries.