Less-developed countries are poor for all of the following reasons except one. Which one?
a. They do not produce many goods and services.
b. Labor productivity is low.
c. Investment funds tend to flow abroad
d. Investment in human capital is very low.
e. The labor force is too small.
e
You might also like to view...
Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
Country A has a capital—labor ratio that is initially twice as big as that of country B, but neither is yet in a steady state. Both countries have the same production function, f(k) = 6k1/2
Country A has a 10% saving rate, 10% population growth rate, and 5% depreciation rate, while country B has a 20% saving rate, 10% population growth rate, and 20% depreciation rate. (a) Calculate the steady-state capital—labor ratio for each country. Does the initial capital—labor ratio affect your results? (b) Calculate output per worker and consumption per worker for each country. Which country has the highest output per worker? The highest consumption per worker?
Judy has just bought a car that is made in Germany. As far as the U.S. balance of payments is concerned this purchase is a(n)
A) accounting identity. B) special draw. C) surplus item. D) deficit item.
An economic model
a. always has a mathematical foundation b. can never be proven wrong c. can be constructed for an individual economic unit but not for the economy as a whole d. is a simplification of the real world e. can be constructed for the economy as a whole but not for an individual economic unit