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Chapter 18: Q. b- For Critical Thinking (page 401)

Why do you suppose that many observers regard India's agricultural productivity issues related to land use as analogous to the problems arising from dead capital?

Short Answer

Expert verified

Agricultural productivity is calculated by dividing agricultural outputs by agricultural inputs.

Step by step solution

01

Introduction.

Other factors that contribute to our country's low agricultural productivity include:

  • A lack of irrigation facilities on a large portion of the cultivated land
  • small and fragmented land holdings among cultivators
  • A lack of timely availability of quality seeds.
02

Agriculture's Productivity.

The ratio of agricultural outputs to inputs is used to calculate agricultural productivity. While individual products are usually measured by mass, which is referred to as crop yield, the variety of products makes calculating overall agricultural output difficult.

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Most popular questions from this chapter

Identify which of the following situations currently faced by the World Bank or the International Monetary Fund are examples of adverse selection and which are examples of moral hazard.

a. The World Bank has extended loans to the government of a developing country to finance construction of a canal with a certain future flow of earnings. Now, however, the government has decided to redirect those funds to build a casino that may or may not generate sufficient profits to allow the government to repay the loan.

b. The IMF is considering extending loans to several nations that failed to fully repay loans they received from the IMF during the past decade but now claim to be better credit risks. Now the IMF is not sure in advance which of these nations are unlikely to fully repay new loans.

c. The IMF recently extended a loan to a government directed by democratically elected officials that would permit the nation to adjust to an abrupt reduction in private flows of funds from abroad. A coup has just occurred, however, in response to newly discovered corruption within the government's elected leadership. The new military dictator has announced tentative plans to disburse some of the funds in equal shares to all citizens.

Last year, \(100million in outstanding bank loans to a developing nation's government were not renewed, and the developing nation's government paid off \)50million in maturing government bonds that had been held by foreign residents. During that year, however, a new group of banks participated in a \(125million loan to help finance a major government construction project in the capital city. Domestic firms also issued \)50million in bonds and $75million in stocks to foreign investors. All of the stocks issued gave the foreign investors more than 10percent shares of the domestic firms.

a. What was gross foreign investment in this nation last year?

b. What was net foreign investment in this nation last year?

In principle, how could a nation maintain a relatively high rate of economic growth even if it also has a relatively high rate of population growth?

Describe the growth shift from advanced nations to developing and emerging countries.

How might Africa's productivity improvements help to explain the recent growth reversal between advanced nations and developing and emerging countries?

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