Which of the following statement is NOT true? Question 3 options: a) In the endogenous growth...
Which of the following statement is NOT true?
Question 3 options:
|
|||
|
|||
|
|||
|
Homework Answers
The main difference between the endogenous model and the Solow model:
The marginal productivity of capital is constant in the endogenous model
The marginal productivity of capital diminishes in the Solow model.
So the statement (a) is not true.
i.e., In the endogenous growth model, the marginal productivity of capital is diminishing.
Answer: Option (A)
Add Answer to:
Which of the following statement is NOT true?
Question 3 options:
a)
In the endogenous growth...
The endogenous growth theory attempts to Question 2 options: a) explain how societies can more easily...
The endogenous growth theory attempts to Question 2 options: a) explain how societies can more easily reach the "Golden Rule." b) replace the Solow model with a model in which money growth plays a key role. c) explain why productivity changes. d) show how population growth reduces capital and output.
Solow Growth Model Which of the following best describe Steady State? A. output growth accelerates B....
Solow Growth Model Which of the following best describe Steady State? A. output growth accelerates B. investment is balanced by depreciation C. investment exceeds depreciation D. the capital labor ratio increases ° Classical versus Endogenous Growth Models One significant disctinction between the classical and endogenous models is O A. only endogenous models explain perfect competition B. both models use constant returns to scale O O C. classical models utilize constant returns to scale, endogenous models employ increasing returns to scale...
4) Which country has had the fastest growth of research activity over the last 15 years?...
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...
2 Endogenous Growth Theory (5 marks) In the AK model with production function Y = AK....
2 Endogenous Growth Theory (5 marks) In the AK model with production function Y = AK. Assume g- is fixed. The saving rate is s and the depreciate rate of capital of. = 0 and p a. What is the growth rate of capital (K) and output (Y)? b. Under what conditions can the economy experience perpetual (positive) growth? c. What is the key factor that drives the perpetual growth? Explain the intuition. (hint: compare the AK model with the...
11. In the Solow model the key driver of economic growth is a) accumulation of human...
11. In the Solow model the key driver of economic growth is a) accumulation of human capital b) accumulation of physical capital c) technological progress d) quality of institutions Kt+1-K The capital accumulation of physical capital is the key equation 12. Let AK+1 of the Solow model, which is the following a) Kt+1 +(1- d)K b) AK41= I+(1 - d)K c) Kt41 Ki-dK d)AK1I- K 13. According to the Solow diagram, no matter if the initial level of capital, Ko,...
Which of the following is not a true statement? Question 10 options: a) The Central Limit...
Which of the following is not a true statement? Question 10 options: a) The Central Limit Theorem will work for skewed data, but the more skewed the data, the more data needed. b) When working with proportions, we do not need to worry about whether or not our successes/failures are greater than 10. c) The Central Limit Theorem depends upon independent observations. d) The center of the sampling model will be the true mean of the population from which we...
Regarding the Solow growth model, which of the following has been regarded as a source of...
Regarding the Solow growth model, which of the following has been regarded as a source of sustained increases in growth? total factor productivity investment in capital investment in natural resource extraction printing money > Moving to another question will save this response.
Assume a production function, Y = KαL1 – α.. Assume constant population growth (n). In the...
Assume a production function, Y = KαL1 – α.. Assume constant population growth (n). In the Solow model, the steady-state level of output per worker is a function of: productivity. population, the depreciation rate, and the saving rate. poverty, productivity, and the saving rate. poverty, productivity, and the depreciation rate. poverty and the steady-state level of capital stock. 35. In the Solow model, it is assumed that a(n) __________ fraction of capital depreciates regardless of the capital stock. a. increasing...
Which of the following features helps explain why sustained improvements in living standards are possible in...
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.
Suppose an economy follows the Solow growth model, with constant investment, depreciation, and population growth rates....
Suppose an economy follows the Solow growth model, with constant investment, depreciation, and population growth rates. Please explain your answers. (a) Suppose that the government withdraws an investment tax credit leading to a permanent drop in the investment rate. Discuss the effect on the level and growth of per capita income (PCI) in the short run. What happens to the level and growth of PCI in the long-run? (b) Suppose that the economy is below its steady state level per...
Solow Growth Model Which of the following best describe Steady State? A. output growth accelerates B. investment is balanced by depreciation C. investment exceeds depreciation D. the capital labor ratio increases ° Classical versus Endogenous Growth Models One significant disctinction between the classical and endogenous models is O A. only endogenous models explain perfect competition B. both models use constant returns to scale O O C. classical models utilize constant returns to scale, endogenous models employ increasing returns to scale...
2 Endogenous Growth Theory (5 marks) In the AK model with production function Y = AK. Assume g- is fixed. The saving rate is s and the depreciate rate of capital of. = 0 and p a. What is the growth rate of capital (K) and output (Y)? b. Under what conditions can the economy experience perpetual (positive) growth? c. What is the key factor that drives the perpetual growth? Explain the intuition. (hint: compare the AK model with the...
11. In the Solow model the key driver of economic growth is a) accumulation of human capital b) accumulation of physical capital c) technological progress d) quality of institutions Kt+1-K The capital accumulation of physical capital is the key equation 12. Let AK+1 of the Solow model, which is the following a) Kt+1 +(1- d)K b) AK41= I+(1 - d)K c) Kt41 Ki-dK d)AK1I- K 13. According to the Solow diagram, no matter if the initial level of capital, Ko,...
Regarding the Solow growth model, which of the following has been regarded as a source of sustained increases in growth? total factor productivity investment in capital investment in natural resource extraction printing money > Moving to another question will save this response.
Most questions answered within 3 hours.
-
Q4 #4
How far apart are an object and an image formed by a
89-cm-focal-length converging...
asked 1 minute from now -
What function do boron esters serve in polymers?
asked 1 second from now -
In a survey of 1147 small-business owners, the following
question was posed: Would you recommend working...
asked 26 minutes ago -
The value of the equilibrium constant Kc for the reaction
N2(g)+3H2(g)⇌2NH3(g) changes in the following manner...
asked 33 minutes ago -
There are two flasks on the bench top, one flask contains a 0.50
M NaCl solution...
asked 38 minutes ago -
Which of the following aqueous solutions are good buffer
systems?
.
0.10 M hydrofluoric acid +...
asked 40 minutes ago -
2. An S election is terminated if the S corporation has passive
investment income in excess...
asked 42 minutes ago -
Part of an ANOVA table is shown below.
Source of
Variation
Sum of
Squares
Degrees of...
asked 58 minutes ago -
Business process improvement initiatives often include
introducing new technology to support the new or changed ways...
asked 1 hour ago -
Review your choice of either Agile or the Waterfall models and
for each of the 22...
asked 1 hour ago -
Suppose an x distribution has mean μ = 4.
Consider two corresponding
x
distributions, the first...
asked 1 hour ago -
A study of the effects of exercise used rats bred to have high
or low capacity...
asked 1 hour ago