EC 102 MIDTERM ARTICLES FULLY
REVIEWED AND CORRECTLY RESOLVED
SOLUTIONS
Microfinance to help poor in developing countries with bad legal systems - answer ✔✔-Hidden
wealth of the poor
Success of micro finance because people who are successful demand secure institutions. But
microfinance may be unsustainable because is hard work - answer ✔✔-Micro no more
Poor counties catching up to rich. Rich countries have trade restrictions that hurt poor
countries. Globalization leads to growth - answer ✔✔-Catching up
China can't sustain fast growth. Investment in China will shrink - answer ✔✔-How China could
yet fail like Japan
Knowledge capital makes increasing returns. Conditional convergence (grow faster with open
economy). - answer ✔✔-Poor and the rich
Geography is big factor of growth. Need foreign aid - answer ✔✔-Institutions matter but not for
everything
Globalization for growth. Opposes export pessimism argument and import subsidizing
industrialization - answer ✔✔-Grinding the poor
REVIEWED AND CORRECTLY RESOLVED
SOLUTIONS
Microfinance to help poor in developing countries with bad legal systems - answer ✔✔-Hidden
wealth of the poor
Success of micro finance because people who are successful demand secure institutions. But
microfinance may be unsustainable because is hard work - answer ✔✔-Micro no more
Poor counties catching up to rich. Rich countries have trade restrictions that hurt poor
countries. Globalization leads to growth - answer ✔✔-Catching up
China can't sustain fast growth. Investment in China will shrink - answer ✔✔-How China could
yet fail like Japan
Knowledge capital makes increasing returns. Conditional convergence (grow faster with open
economy). - answer ✔✔-Poor and the rich
Geography is big factor of growth. Need foreign aid - answer ✔✔-Institutions matter but not for
everything
Globalization for growth. Opposes export pessimism argument and import subsidizing
industrialization - answer ✔✔-Grinding the poor
