Indeed, according to United Nations estimates, the world became more urban than rural in 2008, for the first time in human history. This show the problem of:

• A) Localization
• B) Urbanization
• C) Globalization
• D) Modernization

Studies showed that more rapid industrial growth tends to be associated with:

• A) More deflation
• B) Less GDP growth
• C) More GDP growth
• D) More unemployment

If α + β = 1 in the Cobb-Douglas production function, it shows:

• A) Increasing returns to scale
• B) Decreasing returns to scale
• C) Constant returns to scale
• D) Zero returns to scale

Which of the following are called economic agents?

• A) Firm
• B) Government official
• C) All of the given options
• D) Consumer

The profitability of an investment in which both costs and benefits are accounted for from the perspective of the society as a whole is called:

• A) Private returns
• B) Private costs
• C) Social costs
• D) Social returns

A condition in which an economy begins development to reach middle-income status but is chronically unable to progress to high-income status is known as:

• A) Under development trap
• B) High income trap
• C) Middle income trap
• D) Low income trap

The production function for analysis of growth is y = f (R, K, L, T), where L shows:

• A) Technology
• B) Land
• C) Capital
• D) Labor

A production function with strong complementarities among inputs, based on the products of the input qualities is known as:

• A) Cobb Douglas production function
• B) Production function
• C) Input function
• D) O-Ring production function

The production function for analysis of growth is y = f (R, K, L, T), where R shows:

• A) Labor
• B) Land
• C) Technology
• D) Capital

If α + β < 1 in the Cobb-Douglas production function, it shows:

• A) Increasing returns to scale
• B) Decreasing returns to scale
• C) Constant returns to scale
• D) Zero returns to scale

An action taken by one agent that decreases the incentives for other agents to take similar actions is called:

• A) Complementarity
• B) Congestion
• C) Substitutability
• D) Competition

The production function for analysis of growth is y = f (R, K, L, T), where K shows:

• A) Capital
• B) Labor
• C) Technology
• D) Land

A condition in which more than one equilibrium exists is known as:

• A) Market equilibrium
• B) General equilibrium
• C) Multiple equilibria
• D) Single equilibrium

Which of the following are the limitations of the Cobb-Douglas production function?

• A) The production function assumes constant unit elasticity of substitution between factors
• B) Only one combination of factor inputs can be observed at one time
• C) All of the given options
• D) Aggregation of heterogeneous factor inputs and output

If α + β > 1 in the Cobb-Douglas production function, it shows:

• A) Increasing returns to scale
• B) Decreasing returns to scale
• C) Zero returns to scale
• D) Constant returns to scale

The part of the urban economy of developing countries characterized by small competitive individual or family firms is known as:

• A) Financial sector
• B) Public sector
• C) Informal sector
• D) Formal sector

The production function for analysis of growth is y = f (R, K, L, T), where T shows:

• A) Labor
• B) Capital
• C) Technology
• D) Land

Which of the following relation exist between urbanization and per capita income?

• A) Negative
• B) Horizontal
• C) Positive
• D) Vertical

An action taken by one firm, worker, or organization that increases the incentives for other agents to take similar actions is known as:

• A) Competition
• B) Neutrality
• C) Complementarity
• D) Substitutability

Agglomeration effects captured by particular sectors of the economy, such as finance or autos, as they grow within an area is known as:

• A) Diseconomies of scale
• B) Urbanization economies
• C) Economies of scale
• D) Localization economies