Question #16

Reading: Reading 6 Economic Growth

PDF File: Reading 6 Economic Growth.pdf

Page: 9

Status: Unattempted

Correct Answer: A

Part of Context Group: Q16-18 First in Group
Shared Context
- Which country is most likely to rely on improving technology rather than capital deepening for increase in potential GDP growth? A) Surico. B) Wisterbon. C) Pratia.
Question
Which economist is mostly applying neoclassical theory when stating her concerns?
Answer Choices:
A. Economist #3
B. Economist #2
C. Economist #1
Explanation
The neoclassical growth theory is based on when the output to capital ratio is constant, both the labor to capital ratio and output per capita grow at the same equilibrium rate. Economist #1's concern is supported by the classical growth theory and Economist #3's concern is supported by the endogenous growth theory.
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