Answer the following statements true (T) or false (F)
1. The demographic transition view of population growth believes that slower population growth will lead to rising incomes.
2. Without an abundant endowment of natural resources, a nation cannot achieve rapid economic growth.
3. Saving is a larger percentage of domestic output in DVCs than in IACs, but the saving is put to poor use.
4. Capital flight from DVCs (developing countries) tends to offset much of the foreign loans and aid that they receive from IACs (industrially advanced countries).
5. When technological advances are of the capital-using kind, it is possible for an economy to increase its productivity without any net investment in capital goods.
1. F
2. F
3. F
4. T
5. F
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Cost minimization is the process of making optimal use of all of the inputs whose quantities are
a. set in the short run. b. set in the intermediate run. c. set in the long run. d. variable in the short and long run.
If, at some interest rate, the quantity of money supplied is less than the quantity of money demanded, people will desire to
a. sell interest-bearing assets, causing the interest rate to decrease. b. sell interest-bearing assets, causing the interest rate to increase. c. buy interest-bearing assets, causing the interest rate to decrease. d. buy interest-bearing assets, causing the interest rate to increase.