The endogenous growth model predicts that
A) there is convergence in incomes per capita across countries.
B) output per capita is constant.
C) rich countries will always become poor.
D) differences in per capital incomes across countries persist forever.
D
You might also like to view...
George and Michael can gain from exchange
A) unless one has an absolute advantage in all goods. B) if each specializes in the production of the good for which he has the higher opportunity cost. C) if each specializes in the production of the good for which he has the lower opportunity cost. D) unless they have different opportunity costs.
If C = $400, I = $100, G = $50, NX = $30, and NFP = $5, how much is GDP?
A) $580 B) $575 C) $585 D) $550
Which of the following combinations of nominal interest rates and inflation implies a real interest rate of 7 percent?
a. a nominal interest rate of 5 percent and an inflation rate of 4 percent. b. a nominal interest rate of 4 percent and an inflation rate of 3 percent. c. a nominal interest rate of 8 percent and an inflation rate of 1 percent. d. a nominal interest rate of 14 percent and an inflation rate of 2 percent.
You are a student at a university. You pay $8,000 per year in tuition, $5,000 per year in living expenses, and $1,000 per year for books. Were you not in school, you could earn $15,000 per year and you would not live with your parents. What is your economic cost of a year in college?
A. $9,000 B. $15,000 C. $24,000 D. $29,000