TAMU ECON 203 Exam 2 Newest 2026
Questions and Correct Detailed Answers
Already Graded A+
Who tends to save more developed or developing nations? - CORRECT
ANSWER-developing
Government investments come from? - CORRECT ANSWER-tax revenue
borrowing
What do Government "industrial policies" do? - CORRECT ANSWER-support of
industries that can contribute most to national growth
Foreign Direct Investment - CORRECT ANSWER-when a firm runs part of its
operation abroad or invests in another company abroad
Foreign Portfolio Investment - CORRECT ANSWER-investment funded by
foreign sources that is operated domestically
,Physical Capital Policies - CORRECT ANSWER-policies encouraging savings and
investment
-lower taxes on savings and investments
policies encouraging inflow of foreign investments
-trade policies
Human Capital - CORRECT ANSWER-set of skills, knowledge, experience, and
talent that determine the productivity of workers
an increase in human capital causes - CORRECT ANSWER-workers to produce
more with the same amount of capital (increase in productivity)
Technological improvements - CORRECT ANSWER-innovations that cause the
same inputs to produce more outputs.
allows you to produce more output with the same amount of capital
Technology: Policies - CORRECT ANSWER-Creation and dissemination of
technical knowledge (e.g. agricultural extension)
Research grants
, Patents
Government research programs (National Defense, Space Exploration)
Natural Resources - CORRECT ANSWER-production inputs that come from the
earth.
Trade-offs: The poorer the country.... - CORRECT ANSWER-the harder the
trade-off
"Poverty Trap" - CORRECT ANSWER-one of the main justifications for foreign
aid that provides loans or funding for investment and development
What is the main focus of growth theories? - CORRECT ANSWER-accumulation
of physical capital
Who is not in the working age population? - CORRECT ANSWER-Young (less
than 16 years old)
Military
Institutionalized population (prison, mental hospitals)
Questions and Correct Detailed Answers
Already Graded A+
Who tends to save more developed or developing nations? - CORRECT
ANSWER-developing
Government investments come from? - CORRECT ANSWER-tax revenue
borrowing
What do Government "industrial policies" do? - CORRECT ANSWER-support of
industries that can contribute most to national growth
Foreign Direct Investment - CORRECT ANSWER-when a firm runs part of its
operation abroad or invests in another company abroad
Foreign Portfolio Investment - CORRECT ANSWER-investment funded by
foreign sources that is operated domestically
,Physical Capital Policies - CORRECT ANSWER-policies encouraging savings and
investment
-lower taxes on savings and investments
policies encouraging inflow of foreign investments
-trade policies
Human Capital - CORRECT ANSWER-set of skills, knowledge, experience, and
talent that determine the productivity of workers
an increase in human capital causes - CORRECT ANSWER-workers to produce
more with the same amount of capital (increase in productivity)
Technological improvements - CORRECT ANSWER-innovations that cause the
same inputs to produce more outputs.
allows you to produce more output with the same amount of capital
Technology: Policies - CORRECT ANSWER-Creation and dissemination of
technical knowledge (e.g. agricultural extension)
Research grants
, Patents
Government research programs (National Defense, Space Exploration)
Natural Resources - CORRECT ANSWER-production inputs that come from the
earth.
Trade-offs: The poorer the country.... - CORRECT ANSWER-the harder the
trade-off
"Poverty Trap" - CORRECT ANSWER-one of the main justifications for foreign
aid that provides loans or funding for investment and development
What is the main focus of growth theories? - CORRECT ANSWER-accumulation
of physical capital
Who is not in the working age population? - CORRECT ANSWER-Young (less
than 16 years old)
Military
Institutionalized population (prison, mental hospitals)
