Macro Economics MCQ (GK Set-1) with Answers

Countries with lower levels of GDP per capita will grow faster on average than those with higher levels until they catch up to the leaders.

Countries converge to the same steady-state GDP per capita through the elimination of inefficient production.

Modern economic growth eliminates countries comparative advantages as they become more like each other.

None of the above.

the business cycles of advanced economies converged during the first third of the twentieth century.

prices in developing countries are sticky in the long-run whereas prices in advanced economies are flexible in the long-run.

the simple Solow model does not consider complementary inputs such as infrastructure and human capital.

there are significant barriers preventing international factor mobility.

Basic education should be made compulsory.

Human capital should be paid better in poor countries.

Educational subsidies are economically justifiable

Human capital would not necessarily be subject to decreasing returns in the aggregate

A longer patent period means that less knowledge will be available for use

The higher the cost of a patent application, the fewer patent applications will be made

ncreasing the cost of new knowledge through patent licensing will decrease the demand to use new knowledge.

Less than full-exploitation of new knowledge by potential users is the cost of increasing the incentive for inventors to produce new knowledge.

patents restrict access to new technologies to those nations that can afford the fees.

low human capital endowments lead to low rates of diffusion of technological innovations.

multinational corporations do not reinvest their profits from poor nations in the poor nations

all of the above.