This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Explain how the new growth theory treats technology differently from the way economists used to ... (Read 89 times)

nramada

  • Hero Member
  • *****
  • Posts: 580
on: Jun 30, 2018
Explain how the new growth theory treats technology differently from the way economists used to treat technology.
 
  What will be an ideal response?

Question 2

Consider two economies: A and B that are completely similar, except their savings rate. The savings rate in economy A is greater than the savings rate in economy B. Which of the following statements is true?
 
  A) Capital accumulation will be faster in economy B in comparison to economy A.
  B) Capital accumulation will be faster in economy A in comparison to economy B.
  C) Rate of capital accumulation will be the same in both economies.
  D) Growth rate in country B is likely to be higher than the growth rate of country A in the long-run.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

shaquita

  • Sr. Member
  • ****
  • Posts: 324
Reply #1 on: Jun 30, 2018
Answer to Question 1

Technology used to be treated as an outside factor of growth that could not be explained itself. The new growth theory includes technology as another factor of production and argues that the greater the reward to technology the greater will be technological advance. Firms engage in research and development activity with the expectations of increasing their profitability.

Answer to Question 2

B


nramada

  • Member
  • Posts: 580
Reply 2 on: Jun 30, 2018
Wow, this really help

cici

  • Member
  • Posts: 325
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Asthma attacks and symptoms usually get started by specific triggers (such as viruses, allergies, gases, and air particles). You should talk to your doctor about these triggers and find ways to avoid or get rid of them.

Did you know?

In 2012, nearly 24 milliion Americans, aged 12 and older, had abused an illicit drug, according to the National Institute on Drug Abuse (NIDA).

Did you know?

Of the estimated 2 million heroin users in the United States, 600,000–800,000 are considered hardcore addicts. Heroin addiction is considered to be one of the hardest addictions to recover from.

Did you know?

Vampire bats have a natural anticoagulant in their saliva that permits continuous bleeding after they painlessly open a wound with their incisors. This capillary blood does not cause any significant blood loss to their victims.

Did you know?

The oldest recorded age was 122. Madame Jeanne Calment was born in France in 1875 and died in 1997. She was a vegetarian and loved olive oil, port wine, and chocolate.

Growth of a bacterial colony. Growth of a bacterial colony.
Acromegaly. Acromegaly is a metabolic disorder in which excessive amounts of growth hormone are secr Acromegaly. Acromegaly is a metabolic disorder in which excessive amounts of growth hormone are secr
Theory of Mind Theory of Mind
Dara Birnbaum, Technology/Transformation: Wonder Woman. Dara Birnbaum, Technology/Transformation: Wonder Woman.
Gender Schema Theory Gender Schema Theory
Soybean plants in nitrogen-poor soil show how root nodules affect growth. Only the darker green plan Soybean plants in nitrogen-poor soil show how root nodules affect growth. Only the darker green plan
Video: System organization - PPM system types (Somatic, Autonomic & Enteric) and Reflex arc types

For a complete list of videos, visit our video library