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Why Might a Country Experience a Higher Growth Rate After

question 106

Multiple Choice

Why might a country experience a higher growth rate after a war? I. With a depleted, or destroyed, capital stock, any new capital would contribute greatly to growth. II. Capital accumulation always causes higher growth rates. III. A winning country may see its exports surge as it helps others rebuild leading to a higher growth rate.

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Definitions:

Institutional Theory

A theory on the deeper and more resilient aspects of social structure, considering the processes by which structures, schemes, rules, norms, and routines become established as authoritative guidelines for social behavior.

Stakeholder Orientation

A business approach that considers the interests and concerns of everyone impacted by the company's activities.

Economic Institutions

Entities or organizations in a society that create, manage, and enforce the rules and policies governing economic activities and transactions.

Motivational Carrots

Incentives or rewards offered to encourage desired behaviors or performances from individuals or groups.

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