Assuming Diminishing Returns

question 1

Multiple Choice

Assuming diminishing returns,

• A)the increase in output growth from an increase in the saving rate rises over time,and that,other things the same,rich countries should grow faster than poor ones.
• B)the increase in output growth from an increase in the saving rate falls over time,and that,other things the same,rich countries should grow faster than poor ones.
• C)the increase in output growth from an increase in the saving rate rises over time,and that,other things the same,poor countries should grow faster than rich ones.
• D)the increase in output growth from an increase in the saving rate falls over time,and that,other things the same,poor countries should grow faster than rich ones.

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Definitions:

Validity

The extent to which a concept, conclusion, or measurement is well-founded and corresponds accurately to the real world.

Psychometric Approach

The psychometric approach focuses on measuring mental capacities and processes through quantitative tests.

Correlations

Statistical measures that describe the extent to which two variables change together, indicating a relationship between them without implying causation.

Predictive Validity

How well a score from a given test or scale indicates an individual’s subsequent performance on a task that is related.