The main actions that governments can take to achieve faster economic growth include all of the following except: O Create incentive mechanisms O Encourage deficit spending O Encourage research and development (R&D) O Encourage international trade O Improve the quality of education
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- The following table shows the GDP per capita of various countries forthe years 1960 and 2010 in PPP-adjusted 2005 dollars. The table alsocontains the implied growth rates, which show how much on average eachcountry needed to grow each year to reach the 2010 level of GDP per capitastarting from the 1960 level of GDP per capita. Use the table to answer thefollowing questions. 1. Why have some countries reduced the gap between their incomes andthat of the United States and other countries failed to do so?A country faces diminishing marginal returns when increasing it's capital stock. If this country added 100 units of capital last year and saw their GDP rise by $1,000 per person, what would you expect to happen if they had added 200 units of capital instead? O It is impossible to tell what would happen GDP would increase by less than another $1,000 per person GDP would increase by another $1,000 per person GDP would increase by more than another $1,000 per personWhich impacts economic growth? O a decrease in the productivity of labor O an increase in the proportion of the population that is college educated O an increase in the average wage rate paid to workers O an increase in the standard of living
- . For a high-income economy like the United States, what aggregate production function elements are most important in bringing about growth in GDP per capita? What about a middle-income country such as Brazil? A low-income country such as Niger?The hockey stick of growth shows us O That environmental damage has increased dramatically in the past century That GDP per capita has increased dramatically in the past century O That wealth per capita has increased dramatically in the past century O That inflation per capita has increased dramatically in the past centuryY7
- 2:37 PM Mon Apr 17 ents cordings O 3 camino.instructure.com It is impossible to determine which will be favored. Natural Resources Question 3 Which of the following policies would increase the likelihood of economic growth in a country which has recently discovered oil? O Dedicating some of the new revenue to the diversification of labor and capital. Increasing the salaries of government employees in the Energy Department. O Increasing government expenditures in anticipation of large future oil revenues. Dedicating some of the new revenue to intensive training in oil-related jobs. 35% Question 4Explain it now.
- For a high-income economy like the United States, what aggregate production function elements are most important in bringing about growth in GDP per capita? What about a middle-income country such as Brazil? A low-income country such as Niger?Would the following events usually lead to capital deepening? Why or why not? A weak economy in which businesses become reluctant to make long-term investments in physical capital. A rise in international trade. A trend in which many more adults participate in continuing education courses through their employers and at colleges and universities.Q3
