Sustained economic growth and endogenous growth theory

Which of the following is not an assumption of Solow's growth model?

• There can be an infinite increase in machines used

• There are diminishing returns to the use of capital

• GDP is produced using capital and labour

• Labour is primary to increasing GDP growth

Which of the following is not a channel for capital accumulation?

• Bond market

• Equity market

• Loans market

• Derivatives market

The size of capital is dependent on ...

• The size of depreciation and savings

• The size of labour and land

• The level of technology and education

• The size of the foreign exchange and derivative markets

Select the TWO correct assumptions regarding capital growth

• The kind of growth that is driven by capital accumulation is decreasing over time, and eventually reaches zero

• Capital accumulation is an additional engine of growth in a modern economy.

• There are increasing returns to the use of labour combined with technology

• Capital accumulation is an important factor from growth in a traditional economy

What is not a form of capital use in the Solow model?

• Human Capital

• Physical Capital

• Financial Capital

• Intangible Capital

Which of the following industries is likely to be least reliant on human capital?

• Agriculture

• Manufacturing

• Services

• Tourism

Which of the following defines this statement: "economies that have started to modernise later should grow faster than economies that have started to modernise earlier"

• Leaping

• Convergence

• Divergence

• Conjunction

Which of the following regions is not displaying evidence of economic convergence?

• Asia

• North America

• Europe

• South America

Which of the following developing regions is displaying economic convergence?

• Central Africa

• South East Asia

• South America

• Central Asia

Empirical evidence on development suggests which of the following TWO trends?

• There has been a general trend of economic convergence for most countries in the world

• There has been a general trend of economic divergence for several developing countries

• Most developing countries have shown progress in economic convergence

• Wealth has been concentrated in a "club" of developed countries