Exam 3: International Trade and Factor Accumulation

The Harrod-Domar model predicts that if the saving rate is 20% and the capital output ratio is a constant equal to 5, then the economy will grow at a rate of:

The Harrod-Domar model starts with the following assumption(s):

The Solow model tells us that if countries have the access to the same technology and they accumulate new technology at identical rates, then any differences in per capita real output must be due to:

In his famous article, The Myth of Asia's Miracle, Paul Krugman argued that East Asian economic growth would:

The term γ in the Harrod-Domar model equation, ΔY = (1/γ)ΔK, is often referred to as the:

The reason that the textbook converted the basic production function as specified by Robert Solow, Y = F(K,L) to the form y = f(k), where y and k represent Y/L and K/L, respectively, is that:

According to Adam Smith, the following institutions are necessary for innovation and specialization to flourish:

If we depict the economy, using Solow's model, in a diagram with per capita output y on one axis and the ratio of capital to labor, k, on the other, then technological progress will appear in this model as:

Holism and science are:

Adam Smith published:

In the Solow model, the steady state includes a positive rate of per capita output growth only when the model includes a positive rate of: