Return Subvnit 1 point Institutional structure may be a determinant of productivity differences unrelated O fundamental proximate superficial 2 1 point Looking at data across countries, the relationship between human capital and GDP per capita and between physical capital per worker and GDP per capita is best characterized as positive circular po relationship 3 I point Productivity is the key determinant of standards of living. Productivity increases allow mere production for amy Input, but another reason why productivity raises standards of living is that higher productivity brings tax rate Increases higher productivity reduces innovation 10 higher productivity lowers human capital 11 O hither productivity also stimulates physical and human capital accumulationVCU 4 Increate physical capital alone, holding all other production function elements constant, cannot generate sunstaked growth in standarch of living because countries need money to purchase capital capital is not that important to production capital is subject to diminishing returns )economies have constant return to stale 5 The Idea that physical and human capital are only proximate caines of economic growth refers to the notion that In beit explain growth, one needs to understand the fundamental Incentives for accumulating physical or human capital one wants to do more than approximate the level of physical and human capital In an economy to bist explain growth, the needs to know approximately how much physical and human capital are needed to best explain growth, one seems to explain the sbilly to finance physical and human capital accumulation What is one botdibble ro hion the countries win under performing institutions don't adept Instinctions that would Improve economic performance? Paling elies invally give up power evnatualy Tuning elim are unaware of Which pollies would benefit the poorormember of city Ruling siteshave avested inwest In maintaining the sista quaMost of the world's low income countries are located in which of the following regions: North America Europe Africa South America E The US's long run trend growth rate has been relatively constant since about 1870 is approximately Changes to human capital, physical capital and pertups even productivity have been caled "proximate" cause of growth. Fundamental causes of growth are than inat () proclaim fundamental religions and economic growth have roots in an cronman's gulture maplein the incentives that govern growth of physical capital human capital and productivity who effect population growth 10