Final exam questions and answer for the Indonesian Economy and Development Economics
Kamis 11 Juni 2020
1.The Solow model emphasizes the role of which of thefollowing factors of production?
(a) Land
(b) Labor
(c) Capital
(d) Natural resources
2. In an exogenous growth model, growth is caused by
(a) capital accumulation.
(b) government policies.
(c) human capital accumulation.
(d) forces that are not explained by the model itself.
3. Suppose that two countries share identical levels of total factor productivity, identical labor force growth rates and identical savings rates. According to the Solow model
(a) 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.
(b) 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.
(c) both countries will have the same growth rates of output per worker, even if they start out with different levels of output per worker.
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