Profuction And Growth

Question 0

Gross Investment

Answer 0

The total spending on capital stock per period of time in an economy

Question 1

Determinants of e.growth

Answer 1

Physical capital
Human capital
Natural resources
Technological knowledge

Question 2

Net investment

Answer 2

Spending on capital stock taking into account spending on depreciation of the existing capital stock

Question 3

FDI

Answer 3

Capital investment owned and operated by a foreign entity

Question 4

Foreign portfolio investment

Answer 4

Investment finances with foreign money but operated by domestic residents

Question 5

Economic growth and public policy

Answer 5

Encourage investment
I from abroad
Education and training
Establish secure property rights and maintain political stability
Promote free trade
Promote R+D

Question 6

What is the catch up effect

Answer 6

Countries which start off poor tend to increase more rapidly than countries which start off rich

Question 7

Importance of saving and investment

Answer 7

For society to increase more in capital, it must consume less and save more of its current income
–Savings ratio must increase