To what phenomenon does "Solow's Paradox" refer?
A) the failure of the Solow growth model to incorporate endogenous growth variables
B) the absence of any measured effect of new computer technology on productivity statistics.
C) the absence of any long term effect of saving on economic growth rates in the Solow growth model
D) the failure of the Solow growth model to predict non-convergence of poor countries
B
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Consider the demand curves for soft drinks shown in the figure above. Suppose the economy is at point a. Which of the following could result in a movement to point c?
A) a decrease in income B) an increase in the relative price of a soft drink C) a decrease in the relative price of a soft drink D) a decrease in the price of bottled water
The positive externality associated with education is:
a. producers can get higher prices for their goods and services. b. less crowding in the classrooms. c. increases in societal well-being and economic growth. d. technological progress slows as basic research increases. e. the market excludes noncontributors to education from benefits.