Development Economics IIB by Alex Gorashov

land

labour

capital

natural resources

capital accumulation

government policies

human capital accumulation

forces that are not explained by the model itself

the country with the greater initial level of output per worker will grow more rapidly than the country with the smaller initial level of output per worker.

the country with the smaller initial level of output per worker will grow more rapidly than the country with the greater initial level of output per worker.

both countries will have the same growth rates of output per worker, even if they start out with different levels of output per worker

if both countries start out with different levels of income per worker, both countries may have different growth rates of output per worker, but we cannot be certain which country will have the higher growth rate of output per worker.

increases the amount of additional human capital she can produce, but does not increase the amount of output she can produce.

increases the amount of additional output she can produce, but does not increase the amount of human capital she can produce.

increases both the amount of additional human capital she can produce and the amount of output she can produce.

increases neither the amount of additional human capital she can produce nor the amount of output she can produce.

recipient countries with a low level of Human Development Index

recipient countries that used to be former colonies of the donor and that are not necessarily poor

recipient countries with a high level of population

none of the previous answers

controlling for the level of democracy inside the recipient country

using a variable that accounts for the type of fiscal policy implemented by the recipient government

using a composite index that accounts for the fiscal, monetary and foreign policy

controlling for the level of corruption inside the recipient country

Increase in capital-output ratio

Decrease in capital-output ratio

Increase in marginal propensity to consume

None of the above

Ignoring government deficit spending

Omitting non-market transactions

Underestimating saving

All of the above

The rich will get richer and the poor will get poorer

Rich nations will grow faster than poor nations

Poor nations will grow faster than rich nations

The rich will get poorer and the poor will get richer

Economic freedom as measured by the Heritage Foundation Index will decrease

Population growth rates in rich countries will increase

Per capita Real GDP differences among nations will increase

Per capita Real GDP differences among nations will diminish

the rate of capital accumulation within a country

the rate of population growth within a country

why there are diminishing returns to capital

the factors that determine the size of the Solow residual

Causes a deterioration in human capital and an increase in physical capital

Causes a deterioration in human capital and a decline in labor productivity

Increases human capital and a cause a decline in labor productivity

Causes a decline in physical capital and a decline in labour productivity

Foreign aid has a positive impact on growth if associated with sound policies but with diminishing returns

Foreign aid does not have a positive impact on growth but with increasing returns

Foreign aid has always a positive impact on growth but with diminishing returns

Foreign aid has a positive impact on growth if associated with sound policies but with increasing returns

is negatively correlated with Life expectancy

is positively correlated with Infant Mortality

is negatively correlated with Adult Literacy

none of the above

Individuals who inherit less than f work as unskilled but their descendants in future generations will work as skilled workers

Individuals who inherit more than f invest in human capital and all their descendants will remain in the skilled labour sector in future generations

Individuals who inherit less than g may invest in human capital but after some generations their descendants become skilled workers

Individuals who inherit less than f work as unskilled and so are their descendants in future generations

the same output level as before

a higher output level than before

the Golden Rule output level

a lower output level than before

Bangladesh has adopted a strategy of redistribution with growth

absolute poverty is more widespread in Bangladesh

the size distribution of income is more unequal in Indonesia

growth in Bangladesh is calculated using poverty weights rather than income weights

the change in the country’s capital stock

the ratio of the country’s capital stock to its output

the value of the country’s capital stock

none of the above

Increase in marginal propensity to consume

Increase in capital-output ratio

Decrease in capital-output ratio

None of the above

increase; decrease

decrease; increase

decrease; decrease

increase; increase

using a composite index that accounts for the fiscal, monetary and foreign policy

controlling for the level of democracy inside the recipient country

using a variable that accounts for the type of fiscal policy implemented by the recipient government

controlling for the level of corruption inside the recipient country

1

infinity

0

0.5

is based upon the cost of hamburgers around the world

is based upon the nominal exchange rate

is based upon the market exchange rate

is based upon the cost of the same market basket of goods in different countries

higher birth rates and lower death rates

lower birth rates and lower death rates

higher birth rates and higher death rates

lower birth rates and higher death rates

had virtually the same number of households in absolute poverty

had virtually the same percentage of households in absolute poverty

had virtually the same Human Development Index level

none of the above