1.)
In the Solow model with constant technological knowledge (A), when
the economy reaches a steady state:
A) catching-up growth occurs.
B) cutting-edge growth occurs.
C) growth stops.
D) both catching-up and cutting-edge growth occur.
2.) Capital is output that is:
A) invested in the stock market.
B) used to produce other goods.
C) invested in the bond market.
D.) consumed.
3.) Better ideas or technological knowledge causes:
A) the production function to shift upward.
B) the investment function to shift upward.
C) both shift upward.
D) neither shift upward.
4.) A good is not rivalrous if:
A) two people cannot consume it at the same time.
B) two or more people can consume it at the same time.
C) it is not substitutable.
D) it is not a private good.
5.) A binding interest rate ceiling will lead to a(n):
A) higher return on saving.
B) increase in saving.
C) shortage of saving.
D) crowding out of saving.
6.) The cause of frictional unemployment include:
A) the business cycle.
B) the scarcity of information.
C) changes of economic structure.
D) labor unions.
7.) The labor force participation rate responds to:
A) incentives to work
B) real GDP growth.
C) job opportunities.
D) business cycles.