Question

plese answer all 7 multipple choice questions

1.	Which of the following must occur to sustain economic growth in the long run?
		A) technological progress
		B) capital accumulation
		C) a higher saving rate
		D) all of the above
2.	Constant returns to scale implies that if N and K both increase by 3% that
		A) Output (Y) will increase by 3%.
		B) Y/N will increase by 3%.
		C) Y/N will increase by less than 3%.
		D) the capital-labor ratio will increase by 3%.
3.	A reduction in the saving rate will not affect which of the following variables in the long run?
		A) output per worker
		B) the growth rate of output per worker
		C) the amount of capital in the economy
		D) capital per worker
4.	Which of the following statements is always true?
			A) Investment equals depreciation.
			B) Investment equals the capital stock minus depreciation.
			C) The capital stock is equal to investment minus depreciation.
			D) Any change in the capital stock is equal to investment minus depreciation.
5.	The capital-labor ratio will tend to decrease over time when
			A) investment per worker equals saving per worker.
			B) investment per worker is less than saving per worker.
			C) investment per worker exceeds depreciation per worker.
			D) saving per worker equals depreciation per worker.
6.	If the saving rate is 1 (i.e., s = 1), we know that
		A) K/N will be at its highest level.
		B) Y/N will be at its highest level.
		C) C/N = 0.
		D) all of the above
7.	Which of the following will cause an increase in output per effective worker?
		A) an increase in population growth
		B) an increase in the rate of depreciation
		C) a reduction in the saving rate
		D)  an increase in the saving rate

Answer 1