62. What is a problem with the geographical explanation for economic growth? (A) It ignores Malthusian dynamics. (B) Countires like Singapore, with unfavourable geography, are rich. (C) Geography is the outcome of millennia of historical processes that are not fully understood. (D) It ignores the productivity explanation for economic growth.

Question 1 (a) Explain what productivity measures. (b) List and describe 3 factors of labour productivity. (c) International data show a positive correlation between political stability and economic growth. (i) Through what mechanism could political stability lead to economic growth?   (ii) Through what mechanism could strong economic growth lead to political stability? Question 2 (a) Distinguish between a government deficit and trade deficit? (b) Would you rather live in a nation with a with a high per capita GDP and a low growth rate, or in a nation with a low per capita GDP and a high growth rate? (c) Briefly explain the quantity theory of money and how it is related to inflation. (d) Suppose A&K Sound System is considering building a record studio in Cayman Islands. (i) Assume that A&K Sound System needs borrow money on the bond market. Why would an increase in interest rates affect the decision whether to build the studio? (ii) If A&K Sound System has enough of its…

H 1. What factors contribute to productivity growth in an organization or industry? Discuss the key drivers and analyse how these factors impact productivity and the potential for sustainable productivity gains over time.

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