If It Is Assumed That Capital Is Alike and Freely

question 92

Multiple Choice

If it is assumed that capital is alike and freely mobile between economies,the Solow growth model

• A)has no need of the recent attempts at improving it.
• B)suffers from the "exogeneity" problem.
• C)suffers from the "non-convergence" problem.
• D)suffers from the "incentives" problem.

---

Definitions:

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders' equity at a specific point in time.

Dividends

Payments made by a corporation to its shareholder members, distributing profits.

Revised Model Business Corporation Act

An influential model law that suggests legal standards and practices for the formation, operation, and dissolution of corporations in the United States.

Book Value

The net value of a company's assets minus its liabilities and preferred stock, reported on the balance sheet.