Author Question: What are the proximate causes of prosperity? How are they related to the fundamental causes of ... (Read 27 times)

viki · **on:** Jun 30, 2018

What are the proximate causes of prosperity? How are they related to the fundamental causes of prosperity?

What will be an ideal response?

Question 2

The income-expenditure model focuses on changes in price levels.

Indicate whether the statement is true or false

rosiehomeworddo · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

Proximate causes of prosperity are factors such as physical capital, human capital, and technology. They are referred to as proximate causes of prosperity because they link high levels of prosperity to high levels of the inputs of production, but without providing an explanation as to why the levels of those inputs are high.
Proximate causes of prosperity arise out of fundamental causes of prosperity. Fundamental causes of prosperity are factors that are at the root of the differences in the proximate causes of prosperity.

Answer to Question 2

FALSE