A key assumption in an endogenous growth model with both labor and capital

A key assumption in an endogenous growth model with

This preview shows page 9 - 12 out of 14 pages.

32. A key assumption in an endogenous growth model with both labor and capital inputs in the production function is thatA) the share of capital is larger than the share of laborB) the share of capital and labor have to be equalC) better technology is a byproduct of more capital investment4-9
Background image
D) there are no external returns to capital E) long-run growth comes solely from technological progressAns: CDifficulty: Easy33. In a simple version of the Solow growth model with endogenous population growth, a country can escape the poverty trap by Difficulty: Medium34. Which of the following is NOT an important factor in establishing high growth in GDP per capita for a country?Difficulty: Easy35. Which of the following policy options is likely to be most successful in getting a poor country out of the poverty trap? Difficulty: Easy36. Countries can achieve continued economic growth as long asA) technological advances continue B) educational progress continues4-10
Background image
C) intelligent resource management is practicedD) all of the aboveE) only A) and B)Ans: DDifficulty: Easy37. Robert Barro's empirical findings that countries with higher levels of investment will achievea steady state with a higher per-capita income but not with a higher growth rate supportsDifficulty: Medium38. Developed countries that direct their investment towards physical capital rather than researchand development can expect to Difficulty: Easy
Background image
Image of page 12

You've reached the end of your free preview.

Want to read all 14 pages?

  • Spring '17
  • Prof
  • Economics, Gdp, Capital accumulation

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture