Solow's growth model improved upon the Harrod-Domar results by
a. incorporating technological change into the model
b. making a economic growth a reasonable outcome rather than one dictated by specialcircumstances
c. assuming that GDP would fluctuate, rather than grow steadily
d. removing investment from the model
e. none of the above
B
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Which of the following factors would be most likely to encourage capital formation in a less-developed nation?
a. high and variable rates of inflation b. tariffs and quotas that restrict international trade c. a legal system that provides for secure property rights and even-handed enforcement of contracts d. high marginal tax rates
Which of the following statements regarding GDP is correct?
a. GDP includes factory production, but not any harm that may be inflicted on the environment. b. GDP accounts for all activities taking place outside markets. c. GDP provides detailed information about the distribution of income. d. GDP is a good measure of economic well-being for all purposes.
The period of growth in real GDP between the trough of the business cycle and the next peak is called the:
A. recessionary phase. B. expansionary phase. C. contractionary phase. D. cyclical phase.
Why does the marginal resource cost exceed the wage rate in the case of a monopolistic firm? Explain and illustrate with an example
What will be an ideal response?