1. The following could raise the rate of productivity growth EXCEPT

a.encouraging research and development.

b.increasing the capital stock

c.allocating resources more efficiently.

d.improving the quality of capital goods.

2. Suppose there are two countries, all their investment rates, technology levels, population growths, depreciation rates are identical, except that one has a higher real GDP per-capita than the another, then it is predicted that

a.over time, the difference between the real GDP per-capita between the two countries will always remain.

b.lower-income countries will forever be unable to catch up to higher-income countries.

c.the level of real GDP per capita in poor countries will grow faster than in rich countries.

d.economic growth in rich countries can only be accomplished at the expense of slow or even negative growth in poor countries.

3. Developing countries with low saving rates and poor levels of health and education are likely to experience

a.rapid growth in household incomes.

b.low rates of growth in real GDP per capita.

c.easy access to financial backing from banks.

d.high levels of foreign direct investment.

4. In the model explained in our lecture, in the long run, the growth rate of capital stock in the long run (steady-state) will be equal to:

a.thegrowth of investment rate.

b.zero

c.the population growth rate plus the rate of technological progress.

d.thegrowth rate of output.