According to Romer and other new growth theorists, what could poor countries do to stimulate greater economic growth?
What will be an ideal response?
According to new growth theory, poor countries can stimulate greater economic growth by investing more in human capital as well as physical capital, by moving toward freer trade, and by encouraging innovation.
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A key element of the classical growth theory is that
A) low taxes promote economic growth. B) an increase in population leads to increase in labor supply and a decline in real GDP per person. C) economic growth can be sustained as long as government intervention does not occur. D) increases in technology drive economic growth. E) market forces drive economic growth.
Which of the following goods is NOT a likely component of the Consumer Price Index?
A) Hamburger B) 87 octane gasoline C) Structural steel beams D) Movie tickets
A debit item on the U.S. balance of payments is any transaction that
a. results in a loss by U.S. sellers. b. results in a loss by U.S. buyers. c. makes foreigners use up their holdings of U.S. dollars. d. makes U.S. dollars available to foreigners.
In the above table, the optimal quantity of clean air is
A. 0 percent. B. 25 percent. C. 50 percent. D. 75 percent.