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23 March, 15:11

Which of the following policies are consistent with the goal of increasing productivity and growth in developing countries? Check all that apply. Increasing taxes on income from savings Pursuing inward-oriented policies Providing tax breaks and patents for firms that pursue research and development in health and sciences Protecting property rights and enforcing contracts Which of the following are possible outcomes of rapid population growth? A reduction in human capital per worker A reduction in capital per worker An increase in technological knowledge All of the above

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  1. 23 March, 15:34
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    1. Providing tax breaks and patents for firms that pursue research & development in health and sciences; Protecting property rights and enforcing contracts

    2. A reduction in human capital per worker; A reduction in capital per worker

    Explanation:

    1. Goal of increasing productivity & growth in developing countries:

    Providing tax breaks and patents for firms that pursue research & development in health and sciences : this would incentivise them researchers to conduct research, incentivise research organisation to motivate their personnel research activities Protecting property rights and enforcing contracts : As this would create monetary incentive for researchers & research organisations, to get new inventions.

    Increasing taxes would just reduce disposable income, Inward oriented strategy would impact BOP. Both are unrelated to productivity.

    2. Possible outcomes of rapid population growth are:

    A reduction in human capital per worker : Same human capital divided by more no. of people in population. So, reduces per capita availability. A reduction in capital per worker : Same physical capital divided by more no. of people in population. So, reduces per capita availability.

    Increase in technology level is unrelated & inapt.
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