Suppose there are two countries that are identical with the


8. Which of the following events will cause an increase in output per capita (Y/N)?

a. an increase in K

b. an increase in K/N

c. a reduction in K

d. all of the above

e. both of the first two answers above

9. Suppose there are two countries that are identical with the following exception. The saving rate in country A is less than the saving rate in country b. Given this information, we know that in the long run:

a. the growth rate of output per capita will be greater in B than in A.

b. the growth rate of output per capita will be greater in A than in B.

c. output per capita will be greater in B than in A

d. output per capita will be greater in A than in B

e. none of the above


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Microeconomics: Suppose there are two countries that are identical with the
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