D Question 1 1 pts Which of the following are components of economic growth according to the Solow Growth Model O All of these are correct. O growth in labor force. O technological progress. O investment. D Question 2 1 pts Which of the following is a criticism of the neoclassical counter-revolution school's approach? O All of these are correct. O externalities are common in developing countries. O markets are not competitive in developing countries. inequality may worsen when interventions are removed in developing countries. D Question 3 1 pts The underlying assumption of the Harrod-Domar growth model is that O growth can be sustained only if agricultural productivity rises. O developing countries save too much and invest too little O growth is mainly determined by capital accumulation. O the incremental capital-output ratio is given by k ? Y/K. DI Question 4 1 pts According to the theory of structural patterns of development, which of the following tends to occur as a country develops? O an increase in the percer e spent on food O a shift from agriculture to industry and services O a decline in trade as a share of GNP O growth of the rural sector Question 5 1 pts On which of the following does the neoclassical counter-revolution school most blame underdevelopment? O unfair trade practices on the part of developed countries O the legacy of colonialism relatively rigid cultural traditions O misguided government policies Question 6 1 pts n the public choice or new political economy) approach to development the emphasis is on the inherent efficiency of developing country markets. O growth in the rural sector. O the self-interested behavior of public officials. O the dependence of LDCs on former colonial powers. DI Question 7 1 pts The false paradigm model attributes lack of development to O inappropriate advice from rich country economists. O low levels of savings and investment. O a lack of government regulation. inadequate attention to price incentives. D Question 8 1 pts The linear stages theory of economic growth fails to recognize that increased investment is O a necessary but not a sufficient condition. neither a necessary nor a sufficient condition. O a sufficient but not a necessary condition. both a necessary and a sufficient condition. D Question 9 1 pts Assume you have been hired as a consultant to help a country achieve a higher growth rate. The country you are advising has a capital-output ratio (k) of 3.4. What is the necessary savings rate (s) to achieve a growth rate (g) of 0.08. Use the Harrod-Domar model to solve the question. (round to 2 decimal place) Question 10 1 pts Using the basic setup of the Solow growth model, assuming that the saving rate (s) = 0.18, the rate of capital depreciation (delta, 6) is = 0.06, a (alpha) = 0.5, and the population growth rate (n) = 0.05 find the steady-state level of k (capital-labor ratio). Solve to 2 decimal places