Final exam

Final exam for the Indonesian Economy and Development Economics

SECTION A

1. The Solow model emphasizes the role of which of the following 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.
(d) 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. 

5. According to Alesina and Dollar (2000) donor countries tend to allocate more aid to:
(a) recipient countries with a low level of Human Development Index,
(b) recipient countries that used to be former colonies of the donor and that are not necessarily poor
(c) recipient countries with a high level of population
(d) none of the previous answers.

7. Developing countries who have adopted capital-intensive technologies tend to have
(a) relatively higher Gini coefficients.
(b) relatively lower Gini coefficients.
(c) Gini coefficients equal to one.
(d) Gini coefficients equal to zero.