Question

This chapter states that most economists would probably maintain that new technologies are the single most important source of productivity improvement, hence, economic growth in general. Which of the following is correct regarding advances in basic science translating into improvements in standards of living?a)Any scientific improvement will benefit poor countries to the same degree as rich countries, as globalization has allowed all countries to have access to essentially the same basic scientific information at a given time.b)The impact of new scientific knowledge is usually greater in poor countries where the existing knowledge is much lower, as there is much more opportunity for improvement as compared to rich countries.c)Poor countries do not benefit from new scientific knowledge to the same degree that rich countries do, since they lack the resources required to apply the knowledge widely in a beneficial way.d)Economic growth automatically follows from breakthroughs in basic science regardless of an economy’s availability of other resources or its legal and political environment.

Answer 1

Answer:

the correct answer is c)Poor countries do not benefit from new scientific knowledge to the same degree that rich countries do, since they lack the resources required to apply the knowledge widely in a beneficial way.

Explanation:

although novel technologies enable economies to be more productive and achieve greater potentials, in poorer countries they lack the necessary infrastructure and human resources to harness the full potential of this technologies. Also, the initial costs of applying these technologies is higher as well.

Because of this, these new technologies do not benefit the poor countries much.