ECON3301- Intermediate Macroeconomics

1. The economic growth rate usually
a. is higher when the GDP per Capita is lower
b. is lower when the GDP per Capita is higher
c. has no relationship with the GDP per Capita
d. Both a and b
2. The production is best defined as
a. the supply of labour and capital
b. the act of assembling existing outputs in new products
c. the process of transforming inputs into output
d. All of the above
3. Production is best defined as
a. the supply of labour and capital
b. the act of assembling imports into exports
c. the process of transforming inputs into output
d. All of the above
4. In the Solow Growth Model, the Steady State growth rate is higher when
a. The depreciation rate is lower
b. The productivity is higher
c. The saving rate is lower
d. None of the above

5. In the Solow Growth Model, at the Steady State, we have
a. A zero unemployment rate
b. A zero inflation rate
c. A zero economic growth rate
d. A zero investment rate
6. In the Solow Growth Model, at the Steady State, we have
a. A zero unemployment rate
b. A zero inflation rate
c. A zero saving rate
d. None of the above
7. With an increase in the Capital input
a. The Steady State output per worker increases
b. The Steady State capital per worker increases
c. The Steady State saving rate increases
d. The Steady State values remain the same

ECON3301- Intermediate Macroeconomics

8. With an increase in the Labour input
a. The Steady State output per worker increases
b. The Steady State capital per worker increases
c. The Steady State saving rate increases
d. The Steady State values remain the same
9. To compare economic development across the globe, we can use
a. the GNP
b. the GDP
c. the GNI per capita
d. None of the above

10. To compare economic development across the globe, we can use
a. the GNI
b. the GDP
c. the GDP per capita
d. All of the above
11. Developing countries usually
a. are less agricultural than the rest of the world
b. have strong manufacturing sectors
c. have low levels of income inequality
d. None of the above

12. Developing countries usually
a. have a high level of capital per worker
b. have a saving rate higher than developed countries
c. have a high Human Development Index
d. None of the above
13. According to the Solow Growth Model, the Steady State growth rate is higher when
a. The depreciation rate is lower
b. The productivity is lower
c. The saving rate is lower
d. None of the above
14. According to the Solow Growth Model, the Steady State output per worker is higher when
a. The depreciation rate is lower
b. The productivity is higher
c. The saving rate is higher
d. All of the above

ECON3301- Intermediate Macroeconomics

15. At the Steady State, we have
a. A zero GDP per capita
b. A zero Head Count Ratio
c. A zero economic growth rate
d. All of the above
16. The economic growth usually declines
a. As output increases
b. As inputs decrease
c. As exports increase
d. As imports increase
17. The GDP per capita inadequately captures
a. Income inequality
b. Infant mortality
c. Literacy rate
d. All of the above
18. The HDI
a. arguably adds little information above the GDP per capita
b. can be used to estimate the GDP
c. is developed by the World Economic Forum
d. All of the above

19. The HDI is comprised of
a. exports – imports + taxes
b. incomes + exports – imports – taxes
c. GDP +GNI + Life Expectancy
d. None of the above
20. The HDI is comprised of
a. exports, imports, taxes
b. incomes, exports, imports, taxes
c. GNI per capita, education, and life expectancy
d. None of the above