In the North-South model, how are "basic factors" distinguished from "advanced factors," and what are the implications for growth and development possibilities?
What will be an ideal response?
Basic factors include relatively unskilled labor, physical resources, location, and general infrastructure. Advanced factors include education and firm specific human capital, knowledge resources including universities, research facilities, and specialized infrastructure. Trade based on a comparative advantage in primary products may result in limited growth possibilities for a country.
You might also like to view...
If real GDP increased and nominal GDP decreased during the same year, we could conclude that
a. the general price level increased during the year. b. the unemployment rate increased during the year. c. the general price level fell during the year. d. net exports were negative.
If hot dogs cost $2 this year and $3 next year, then 100 hotdogs will contribute
a. $200 to this year's nominal GDP and $166 to next year's nominal GDP. b. $200 to this year's real GDP and $300 to next year's real GDP. c. the same dollar amount to each year's nominal GDP because hotdogs are intermediate goods. d. $200 to this year's nominal GDP and $300 to next year's nominal GDP.
The marginal productivity theory of distribution has been criticized because
a. it assumes that the existing distribution of ownership factors is fair and just when it may not be. b. it does not tell us much about real policy matters. c. a factor's MRP does not in any way correspond to productive effort. d. All of the above are correct.
The term auction facility (TAF) program was instituted by the Federal Reserve to deal with the ________________________. This program gave banks ____________ options when it comes to borrowing from the Fed
A) financial crisis of 2007-2009; more B) Great Depression; more C) financial crisis of 2007-2009; fewer D) Great Depression; fewer