1. Do you think that the marginal product of human capital is decreasing or increasing? Why?
2. What steps could a government take to remove corruption?
3. Will scarcity of resources return us to the world envisaged by Thomas Malthus or will technology overcome this limitation?
4. we have assumed that the level of technology can be adjusted independently of the capital stock. However, in practice, investing in new technology means investing in new machines. Use Figure 5.11 to analyze the implications of this.

, Japan I _ -3 weden ____________ . S. Korea '0 . ----- 'G ------------ France ermany FIGURE 5.11 Rich countries do more R&D. Source:World Development Indicators (2007). 99 If technological progress is the main source of growth for the richest nations, then we can expect them to \"'0 grow more slowly than countries that are not yet at their steady state and that can still grow through capital accumulation alone. Richer countries will experience slower growth due to diminishing MPK and the trials and tribulations that accompany R&D