During the past decade, India has invested about 22% of its GDP while China's investment rate has been double that of India's. India's annual growth rate has been about 6% while that of China has been about 9%. What conclusions can you draw?
What will be an ideal response?
Students are asked to relate investment rates to the rate of economic growth through the Harrod-Domar model. The students should calculate the ICOR for the two countries and note that India's ICOR (about 3.67) is lower than China's (about 5).
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The main reason the United States' standard of living is higher than that of India and China is that we have more
A. land. B. labor. C. capital. D. money.
The Strong Coase Theroem states that in the absence of transaction costs, the assignment of property rights
a. has a negative effect on how resources are allocated. b. has a positive effect on how resources are allocated. c. has no effect on how resources are allocated. d. does not affect the efficiency of how resources are allocated.
By focusing the customers on the price of a product, you make
a. The demand for the product more inelastic b. The customers less price sensitive to the product c. The demand for the product more elastic d. Only B&C
According to monetarists, when will the economy move back to the natural rate of unemployment after a change in output?
a) In the short-run. b) In the long-run. c) Immediately after a decrease in the money supply. d) Immediately after an increase in the money supply.