SOLVED

11) According to the Romer model, an increase in population will cause________. A) an immediate increase in output per capita and a permanent increase in output per capita. B) an immediate decrease in output per capita and a permanent increase in output per capita. C) an immediate increase in output per capita and a permanent decrease in output per capita. D) an immediate and permanent decrease in output per capita. 12) The Solow model is distinct from the Romer model in that an increase in population tends to cause________. A) a permanent decrease in the standard of living in the Romer model. B) an increase in spillover effects in the Solow model, but not in the Romer model. C) a permanent increase in the standard of living in the Solow model. D) a permanent increase in the standard of living in the Romer model. 13) Technological spillover________. A) is made possible by the nonrivalry of ideas. B) generates an increase in both capital and labor. C) is caused by population growth. D) is caused by population decline. 14) The observation that countries with high rates of population growth don’t have higher per capita income ________. A) suggests that the Solow model is unrealistic B) implies that technology doesn’t work as well in countries where the population is growing rapidly C) is not supported by most empirical studies D) is consistent with the Romer model as applied to the world as a whole 15) When technology improves in a country with a fast-growing population ________. A) output rises, but output per person does not B) output rises in that country, while output per person rises in other countries C) output per person rises in that country and around the world D) output per person rises temporarily, then declines 16) The current world population is________. A) 6 million. B) 6 billion. C) 6 trillion. D) 6 gazillion. 17) The Romer and Solow models reach the same conclusion with respect to________. A) output growth in the long-run. B) the impact of changing population. C) the effect of an increase in the saving rate. D) the general level of prices. 18) The graph above might represent the ________. A) response to an increase in the fraction of the population engaged in research and development B) response to a rise in the productiveness of research and development C) response to an increase in the total population D) response to a rise in the saving rate 19) On the graph above, for a while after t = 0, the growth rate of output per worker is ________ the growth rate prior to time zero, and ________. A) below; rising B) below; falling C) above; constant D) above; falling 20) On the graph above, for a while after t = 0, the growth rate of technology is ________ the growth rate prior to time zero, and ________. A) below; falling B) below; rising C) above; constant D) above; falling