D Question 1 1 pts What is a key difference in the prediction of the Solow Growth model to the Endogenous Growth Theory? O There are no differences in the predictions of the models The Endogenous growth theory predicted that poor countries catch up with rich countries, the Solow Growth model, does not predict that poor countries will grow faster than rich countries The Solow model predicted that poor countries catch up with rich countries, Endogenous growth theory, does not predict that poor countries will grow faster than rich countries Solow Growth models predicts that rich countries will always grow faster than poor countries . D Question 2 1 pts One implication of the O-Ring Model is that countries with quality labor will have output compared to countries with higher quality labor. D Question 3 1 pts In endogenous growth models, it is assumed that O the capital-labor ratio is constant. O there are positive externalities from public or private investments. O there are diminishing marginal returns to capital. O growth is explained by forces outside the model. D Question 4 1 pts Which of the following areas are generally considered to exhibit positive externalities that are relevant for development and growth O Health O Research and Development O All of these are correct O Education D Question 5 1 pts What is the key difference between a pecuniary externality and a real externality? with a pecuniary externalit and thus costs or revenue with a pecuniary externality the spillover effects are transmitted through pollution with a pecuniary externality the spillover effects are transmitted through education with a pecuniary externality the spillover effects are transmitted through technology D Question 6 1 pts The S-curve is used to illustrate O economic fluctuations in the economy. O the typical path taken by the current account over time. the existence of multiple equilibria. O the typical growth path of a developing economy. D Question 7 1 pts The big-push theory argues that coordination failures may arise because of O technological externalities. O lack of human capital. All of these are correct. O pecuniary externalities. Question 8 1 pts In contrast to the earlier neoclassical models of economic growth, in endogenous growth models, there is more emphasis on O externalities. O human capital. O All of these are correct. O increasing returns to scale. D Question 9 1 pts The O-ring theory places emphasis on O purchases of machinery and equipment by firms. O education of the labor force. None of these are correct. O skill complementarities. D Question 10 1 pts According to the Hausmann-Rodrik-Velasco Growth Diagnostics Framework O all developing countries suffer from a low returns to economic activity 'one size fits all" policy for economic development is now generally recognized as a myth there is usually one way that all developing countries can be improved all developing countries suffer from a lack of entrepreneurship