Capital-widening refers to _______ the existing capital per worker to new extra workers, while capital-deepening refers to _______ capital per worker for all workers.

Question 2Select one:

a.Limiting; increasing

b.Extending; decreasing

c.Extending; increasing

d.Limiting; decreasing

What is innovation?

Question 3Select one:

a.The use of new technology in producing goods and services

b.The invention of new technology

c.The widening and deepening of capital stock

d.All of the answers are correct

The simple growth model identifies the steady-state rate of growth as the growth in _______ just enough to keep _______ constant.

Question 4Select one:

a.Savings; productivity per capita

b.Capital stock; capital per capita

c.Productivity; total output

d.Productivity; capital per capita

Research and development (R&D) are ____ undertakings by the firms. To provide incentives for such activities, the government may need to provide ____ when new technology is invented. However, the price of such new technology is likely to be ____ because of this government policy.

Question 5Select one:

a.Risky; patents; high

b.Riskless; subsidies; low

c.Riskless; patents; low

d.Risky; subsidies; high

Suppose the inputs of labour and capital each increase by 8%, and output also increases by 8%. The production function exhibits ____ returns to scale technology.

Question 6Select one:

a.Increasing

b.Decreasing

c.Constant

d.Zero

Suppose for the economy of Pluto, its average annual growth rates from 1995 to 2005 for potential GDP was 6.31% per year, labour force was 3% per year, and capital stock was 2.4% per year. Also assume that the share of labour income in national income is always 2/3. What is the contribution of the labour force to the potential GDP growth?

Question 7Select one:

a.1%

b.3%

c.2%

d.4%

Continue with question 7: What is the contribution of the capital stock to the potential GDP growth?

Question 8Select one:

a.0.8%

b.2.4%

c.3.5%

d.1.2%

If the production function is given by Y/N = (K/N)^2.5, then doubling K/N will:

Question 9Select one:

a.Increase Y/N by less than double

b.Increase Y/N by more than double

c.Double Y/N

d.Cannot be determined

In 1995-2000, _____ was the main driving force behind Canada's per-capita GDP growth rates, and this force is represented by a _____ the K/N curve graphically.

Question 10Select one:

a.The growth in the Canadian labour force; shift in

b.The growth in Canadian productivity or technology; shift in

c.The growth in Canadian productivity or technology; movement along

d.The growth in the Canadian capital stock; movement along

Which of the following statements is INCORRECT?

Question 11Select one:

a.Investments in human capital will increase labour productivity

b.Major new inventions lead to waves of new investment

c.In Canada, the government and private firms fund research and development projects

d.If people always save a positive fraction of their income, GDP per capita will always grow

The creation of new positions for Canadian Research Chairs in various Canadian universities is an example of a government policy to promote economic growth by:

Question 12Select one:

a.Increasing physical capital that has positive externalities

b.Increasing human capital

c.Improving the social and legal environment

d.All of the answers are correct

Endogenous growth theories emphasize the importance of all of the following as sources that drive growth, EXCEPT:

Question 13Select one:

a.Positive externalities

b.Diminishing returns

c.Human capital

d.Technology

Time left0:33:08

Question11

Not yet answered

Marked out of 1.00

Flag question

Question text

Which of the following statements is INCORRECT?

Question 11Select one:

a.Investments in human capital will increase labour productivity

b.Major new inventions lead to waves of new investment

c.In Canada, the government and private firms fund research and development projects

d.If people always save a positive fraction of their income, GDP per capita will always grow

Clear my choice

Question12

Not yet answered

Marked out of 1.00

Flag question

Question text

The creation of new positions for Canadian Research Chairs in various Canadian universities is an example of a government policy to promote economic growth by:

Question 12Select one:

a.Increasing physical capital that has positive externalities

b.Increasing human capital

c.Improving the social and legal environment

d.All of the answers are correct

Clear my choice

Question13

Not yet answered

Marked out of 1.00

Flag question

Question text

Endogenous growth theories emphasize the importance of all of the following as sources that drive growth, EXCEPT:

Question 13Select one:

a.Positive externalities

b.Diminishing returns

c.Human capital

d.Technology

Clear my choice

Question14

Question text

The zero-growth proposal advocates for:

Question 14Select one:

a.Zero growth of GDP, because higher GDP imposes additional environmental costs

b.Zero addition to capital stock and population

c.Zero pollution emission to maintain sustainable growth

d.All of the answers are correct

Clear my choice

Question15

Question text

If the production function is given by Y/N = (K/N)^0.8, then doubling K/N will

Question 15Select one:

a.Increase Y/N by less than double

b.Double Y/N

c.Increase Y/N by more than double

d.Cannot be determined

If capital stock increases at the same rate as labour, and all else is equal, then per capita output will _____ and total output will _____.

Question 16Select one:

a.Rise; stay constant

b.Rise; rise

c.Stay constant; stay constant

d.Stay constant; rise

Clear my choice

Question17

Not yet answered

Marked out of 1.00

Flag question

Question text

According to national income accounting, labour accounts for approximately ___ of total income and capital accounts for approximately ____ of total income.

Question 17Select one:

a.0.7; 0.3

b.0.5; 0.5

c.0.3; 0.7

d.0.9; 0.1

Clear my choice

Question18

Question text

Which of the following is an example of a good that has positive externalities in consumption, meaning that one user's value increases when there are many other users?

Question 18Select one:

a.World wide web

b.Clothing

c.Food

d.Steel

Clear my choice

Question19

In 2000-2005, _____ was the main driving force behind Canada's per-capita GDP growth rates, and this force is represented by a _____ the K/N curve graphically.

Question 19Select one:

a.The growth in Canadian productivity or technology; movement along

b.The growth in the Canadian capital stock; movement along

c.The growth in Canadian productivity or technology; shift in

d.The growth in the Canadian labour force; shift in

Clear my choice

Question20

Question text

In 1990-1995, _____ was the main driving force behind Canada's per-capita GDP growth rates, and this force is represented by a ______ the K/N curve graphically.

Question 20Select one:

a.The growth in the Canadian labour force; shift in

b.The growth in Canadian productivity or technology; movement along

c.The growth in the Canadian capital stock; movement along

d.The growth in Canadian productivity or technology; shift in