Question 8 Which of the following features helps explain why sustained improveme

Question

Question 8 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 capital. d·The Solow model allows for investment in the inputs. Question 9 Which of the following features does technology have in common with the other inputs such as physical and human capital? a. It is a public good. b. It has positive externalities c. It is generated through investment. d. It generates creative destruction. Question 10 In class we discussed research on offshore oil wells in Brazil and their impact on nearby communities. Which of the following best describes the problems discovered by that research? a. Oil revenues failed to generate tax revenues for local governments. b. Tax revenues failed to generate increased government spending at the local level. c. Increased government spending failed to increase incomes or expand access to public goods and services. d. Higher incomes failed to raise welfare. Question 11 Which of the following is an example of a poverty trap? a. Countries with corrupt governments are poor. b. The poor pay less in taxes. c. The poor can not afford enough food to work productively, so they earn little. d. Countries where most workers are in agriculture tend to be poor.

Explanation / Answer

8)

Right answer is : (A)

Productivity does not rise in Malthus model, conversely, in Malthus model does not assume rise in productivities.

Rise in productivities is inevitable for sustained improvements in livings standards.

9 )

Correct Answer : (C)

Without investment, it is difficult to generate technological , physical and human capital developments.

Investment in R and D push through technological development, further investment in human resources make it more productive.

10)

Inadequate information;

11)

Right answer: (C)

Poverty trap refers to the economic situation where poor remains poor. Poor does not have enough resources and means; he can not afford good food. So his production capacity remains subdued. Lower productivity keeps income low and low income produces poverty.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.