Question
This type of change is Hicks-neutral if it improves capital and labor equally. For 10 points each:
[10h] Name or describe this type of change. In the Solow growth model, economies converge to a steady state unless this type of change occurs, causing a permanent increase in productivity.
ANSWER: technological growth [or technical change; or technological progress or technological change; accept any answers indicating that technology improves; accept increase in total factor productivity or TFP; prompt on increase in A]
[10m] The Solow model assumes this property, in which adding additional factors of production past an optimal point will result in smaller marginal increases in output.
ANSWER: diminishing returns [accept law of diminishing returns]
[10e] In the Solow model, the income levels of poorer countries converge towards those of richer countries if the rate of this process is high. In microeconomics, consumers either spend their income or do this with it.
ANSWER: saving money [or save money; accept savings rate; accept investing or investment]
<Ethan Ashbrook, Social Science - Economics> ~23190~ <Editor: Vincent Du>
Data
Summary
| Tournament | Edition | Exact Match? | Heard | PPB | Easy % | Medium % | Hard % |
|---|---|---|---|---|---|---|---|
| 2024 PACE NSC | 06/08/2024 | Y | 34 | 17.06 | 100% | 47% | 24% |