MC4Solution - Chapter 4 Contemporary Models of Development...

Chapter 4
Contemporary Models of Development
and Underdevelopment
1. The Solow residual helps explain growth that derives from
(a) increasing the size of the labor force.
(b) increasing the size of the capital stock.
(c) increasing the capital-labor ratio.
(d) anything except increases in the size of the labor force or the capital stock.
Answer: D
2. In endogenous growth models, it is assumed that
3. In contrast to the earlier neoclassical models of economic growth, in endogenous growth models,
there is more emphasis on
4. The new growth theory attempts to explain