Suppose nations A and B begin with the same production functions and the same access to technology, but nation A has only a portion of the capital stock per worker that nation B has. Which of the following statements is false?
A) Additional capital stock investment will yield a higher return in nation A.
B) Capital stock per worker will increase in nation A relative to nation B.
C) The level of capital stock in both nations eventually will be equal.
D) Income per capita in both nations eventually will be equal.
E) Capital stock per worker in nation A eventually will equal that of nation B.
Correct Answer:
Verified
Q13: For the production function Y/N = K/N)0.7
Q14: Endogenous growth theory attempts to explain the
Q15: One way of testing the constant steady-state
Q16: In growth theory analysis, "convergence" occurs when
A)
Q17: One prediction of the Solow growth model
Q19: The convergence hypothesis of the Solow growth
Q20: One way of testing the constant steady-state
Q21: Through the use of an augmented Solow
Q22: Even though economists find different conclusions, depending
Q23: Each of the following is a type
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents