Answer to Question #283632 in Economics for Saldisha

Question

A major conclusion from empirical studies of the “sources of growth” is that productivity and efficiency are far less important for LDCs than capital accumulation. True/False

Chenery and his colleagues found that there are more differences than similarities in the way economies go through the process of development. True/False

Public choice theory argues that from an economic development perspective, the best government is a small government. True/False

Answer 1

Capital accumulation is the growth in wealth through investments or profits. Means to grow wealth can include appreciation, rent, capital gains, and interest. Measuring capital accumulation can be seen through the increased value of assets through investments and savings.

So, the statement is true.

Chenery and his colleagues put forward several additional characteristic features of the development process, such as steady accumulation of physical and human capital, changes in consumer demands, increased urbanization, and demographic transition.

So, the statement is true.

Public Choice Theory is defined as the economic analysis of non-market decision-making application of economic analysis to political outcomes.

So, the statement is false.