Neoclassical growth theory
A) predicts that growth rates and incomes per person throughout the world will converge.
B) predicts that the faster growing underdeveloped nations will overtake and then surpass the industrial nations.
C) predicts that nations that enjoy a technological advantage will maintain that advantage.
D) makes no predictions about the relative growth or incomes among countries.
Question 2
The table above lists six points on the production possibilities frontier for grain and cars. What is the opportunity cost of producing the 5th ton of grain?
A) 16 cars per ton of grain
B) 6 cars per ton of grain
C) 3 cars per ton of grain
D) 2 cars per ton of grain
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