The Solow and Romer models explain why countries have different TFP levels and investment rates.Group of answer choicesTrueFalse

The combined Solow and Romer model helps explainGroup of answer choicesthe overall trend in income around the world.all of the above.why different countries can grow at different rates even though in the long run, all countries grow at the same rate.why long-run growth is possible.

5. In the 2 factor, 2 good Heckscher-Ohlin model, the production possibility frontier is kinked whenA) a country does not engaged in tradeB) the opportunity cost of production is constantC) there is no factor substitution in productionD) there are unemployed factor resourcesE) transportation cost are very high.

Global investments need to be evaluated like domestic investments, but one downside is.Multiple ChoiceTime zone differences.Reliable accounting information for foreign firms could be scarce.Language barrier.Not enough choices of investments.

2. The Heckscher-Ohlin model differs from the Ricardian model of Comparative Advantage in that theformerA. has only two countries.B. has only two products.C. has two factors of production.D. has two production possibility frontiers (one for each country).E. None of the above.

For which of the following does the Solow-Swan model NOT provide an adequate explanation?Question 23AnswerSelect one:a.why saving rates differ across countriesb.why population growth rates differ across countriesc.what causes long-term economic growthd.the cause of productivity differences across countriese.All of the other answers are correct