4) Which country has had the fastest growth of research activity over the last 15 years?
a. China.
b. South Korea.
c. Russia.
d. The United States.
5) Which of the following is an important ingredient for a poverty trap based on beliefs?
a. Diminishing returns to capital.
b. Strong complementarities between the actions of different people and firms.
c. A corrupt government.
d. Decisions that have payoffs today.
6) Which of the following features helps explain why sustained improvements in living standards are possible in the Solow but not the Malthus model?
a. Productivity can increase in the Solow model.
b. Population can increase in the Solow model.
c. The Solow model allows for diminishing marginal product of inputs.
d. The Solow model allows for accumulation of inputs through investment.
a) "A"
China had the highest growth rate in last 15 years.
b) "C"
A corrupt government is an important ingredient for a poverty trap.
c) "A"
productivity can increase in the Solow model where as it was decreasing in the Malthus model with increasing population.
4) Which country has had the fastest growth of research activity over the last 15 years?...
Which of the following features helps explain why sustained improvements in living standards are possible in the Solow but not the Malthus model? Select one: a. Productivity can increase in the Solow model. b. Population can increase in the Solow model. c. The Solow model allows for diminishing marginal product of inputs. d. The Solow model allows for accumulation of inputs through investment.
How do the national income accounts change if social security payments increase? A) Consumption falls. B) Consumption rises. C) Savings rise. D) This change is not captured in the national income accounts. How do the national income accounts change if unemployment benefits paid to people increase? A) Consumption falls. B) Consumption rises. C) Savings rise. D) This change is not captured in the national income accounts. How do the national income accounts change if national defense spending increases? A) Government...