Other Economics Answers

If the economy’s output function is given as , where y=(Y/L) and k = (K/L), the average productivity of capital diminishes as k increases. True/False

Other things the same, in the Solow model in the steady state, a higher rate  of population growth leads to an increase in the level of output per worker True/False

The neocolonial dependence model is closely aligned with Marxism. True/False

The false paradigm model attributes lack of development to inadequate attention to price incentives. True/False

If depreciation is less than investment, stock of capital decreases. True/False

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

When the vertical axis measures changes in real wage rate, the labor demand curve is represented by the marginal product of labour. True/False

The Lewis dual sector model assumes the marginal product of labor is close to zero or equal to zero in the traditional sector. True/False

The Lewis two-sector model assumes high unemployment in the urban sector.True/False

GDP is a stock variable while government debt is a flow variable. True/False

Out of these options, based on our course, which would be an effective remedy to the problem of zombie firms in East Asian economy？

A) By raising wages, interest-rates, and RMB exchange-rates gradually, to increasing the household income share of GDP and push zombie firms into bankruptcy, while exchanging state assets for banks’ liabilities.

B) By raising national savings and attracting larger flows of foreign capital into China’s financial sector to boost investment and jobs in industry 4.0.

C) By cancelling debts and nationalizing industries for planned production

The owner of a car wash is trying to decide on the number of people to employ based on

the following short-run production function:

Q 5 6L 2 0.5L

Rostow visited Korea multiple times and declared Korea was positioned in the age of mass consumption on his last visit in 1991. True/False