According to the Solow Model, Differences in Standards of Living

question 21

Multiple Choice

According to the Solow model, differences in standards of living across countries is explained by

• A)different barriers to technology adoption.
• B)differences in labour supply.
• C)different steady states.
• D)differences in total factor productivity.
• E)differences in population growth.

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Definitions:

Economic

Refers to the science that studies how goods and services are produced, distributed, and consumed.

Economic Assistance

Financial aid provided by countries or international institutions to support the economic development and welfare of disadvantaged regions or countries.

United States

A federal republic in North America, composed of 50 states, a federal district, and several territories, known for its large economy and diverse population.

Year

A measurement of time that represents the period it takes for the Earth to complete one orbit around the Sun, approximately 365 or 366 days.