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Unformatted text preview: Q8 In this chapter, be careful on the term ‘human capital’ (e.g. knowledge), it is NOT the same as ‘physical capital’ (e.g. machinery). Q9 When property rights are not enforced by law and order in a country, it is very hard to protect one’s property. e.g. if you own a small boutique in such a country, lack of property rights might imply that anyone can easily seize the ownership of your boutique. One possible consequence would be the frequent collection of ‘protection money/ fee’ from the police, i.e. corruption would be a serious problem. As a result, would you like to own businesses in such places? Q10 Be noted that this is an application/ connection between Ch. 9 (the financial market model in real interest rate determination) and Ch. 10 (the econ growth model)....
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This note was uploaded on 04/22/2010 for the course ECONOMICS ECON1002 taught by Professor None during the Spring '10 term at Hong Kong Institute of Vocational Education.
- Spring '10