If a production function exhibits constant returns to scale ?
A. doubling all of the inputs more than doubles output due to the catch-up effect
B. doubling all of the inputs has absolutely no impact on output because output is…
For a given level of technology, we should expect an increase in productivity within a nation when there is an increase in each of the following except ?
B. physical capital/worker
C. human capital/worker
Once a country is wealthy ?
A. it no longer needs any human capital
B. capital becomes more productive due to the “catch-up- effect”
C. none of these answersD. it may be harder for it to grow quickly because of the diminishing…
Many East Asian countries are growing very quickly because ?
A. They save and invest an unusually high percentage of their GDP
B. They have always been wealthy and will continue to be wealthy, which is known as the “snowball…
To increase growth, governments should do all of the following except ?
A. encourage foreigners to investment in your country
B. encourage saving and investmentC. nationalize major industries
D. encourage research and development…
Which of the following expenditures to enhance productivity is most likely to emit a positive externality ?
A. Megabank buys a new computerB. Naila pays her university tuition fees.
C. OGDC leases a new oil field
D. Indus Motors…
If Toyota builds a new plant in the north of England ?
A. None of these answers
B. There has been an increase in foreign portfolio investment in the UK
C. Once the plant starts producing cars UK GDP will rise less than UK GNPD.…
Which of the following is an example of foreign portfolio investment ?
A. Toyota builds a new plant in the north of EnglandB. EDF of France buys s in Scottish & Southern Energy of the UK, and Scottish & Southern Energy uses…
Which of the following describes an increase in technological knowledge ?
A. A farmer sends his child to agricultural college and the child returns to work on the farm
B. A farmer hires another day laborer
C. A farmer buys another…
Thomas Malthus argued that ?
A. none of these answersB. an ever-increasing population is constrained only by the food supply resulting in chronic faminies
C. technological progress will continuously generate improvement in…