Question

According to the Economist article "The poor and the rich," which of the following are implications of the neoclassical growth model? L Growth ultimately depends on technological progress II. Exports are the key to growth III. Rich countries will grow more slowly than poor countries IV. Technological innovation can depend on imperfect competition

A. II and IV
B. I and II
C. I, II and III
D. I and III

Answer 1

D. I and III

Step-by-step explanation:

The two options aptly captured the implications of the neoclassical growth model.

Where there is a modest investment in science and technology, growth can be envisaged. With such investment in technology, new procedures, mechanisms, ways, processes are deduced ultimately leading to efficiency and effectiveness. Growth is thus inevitable.

Rich countries have the resources within there disposal to invest massively in technology and improved methods and procedures, unlike the poor countries. Growth is thus gradual and steady in rich countries unlike the poor ones