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NEW QUESTION: 1
Mark Taber, CFA, is the Chief Investment Officer of the Taber Emerging Markets Fund, (TEMF). Taber uses a top-down approach to investing in countries. By interviewing government officials and the managements of foreign companies, Taber often gains economic and investment insights not yet fully understood by the foreign market. Taber is currently researching a potential investment in the emerging market country of Alphia. Taber travels to Ullom, the capital of Alphia, to discuss past, present, and future economic growth theory development with Dr. Raman Satish, managing director of the Alphia Economic Development Agency (AEDA).
Dr. Satish starts the conversation with Taber by discussing the three great growth cycles that the Alphian economy has experienced over the past 120 years: (1) the classical growth era, (2) the neoclassical growth era, and (3) the new growth era. Taber takes down the following statements from the meeting with Dr. Satish's meeting.
1. The Classical Growth Era of Alphia (1850-1950)
This hundred-year era was noted for periodic high levels of population growth and the sporadic introductions of technology. The average Alphianian's income was very modest and the standard of living remained almost the same over the 100-ycar period, except when new technology was introduced. Dr.
Satish cites the example of the one-time introduction of electricity to the Alphian economy from 1947 to
1950. E

2. The Neoclassical Growth Era o/Alphia (1951-1990)
During the neoclassical growth period, Alphia experienced a period of great economic growth. For example, from 1986 to 1990, Alphia's capital per hour of labor grew at a 9% annual rate, while real GDP grew at 7% per annum.
Also, Alphia was able to achieve economic growth rates and income levels comparable with many of its neighboring countries during the neoclassical growth period. Alphian scientists, together with the engineering department of the University of Ullom, provided access to the finest technology in the world. In addition, Alphia opened up its equity markets to outside investors and allowed its currency to float. Dr.
Satish believes that, given time, these capital market improvements should allow the Alphian economy to achieve an economic growth rate and per capita income level comparable to any country in the world.
To understand the role of technology in the growth of the Alphian economy (using neoclassical growth theory assumptions), the following table was developed to show the increased productivity of Alphian farmers using disease resistant grains. Assume new disease resistant grain technology was introduced into the Alphian farm economy at Point A.

3. The New Growth Era (1991-Today)
Since the Alphian energy crises of the late 1980s, the economy has been in transition. The AEDA goal is to have more than 50% of Alphian GDP coming from what we now call knowledge capital based industries by the year 2020. Given the large and growing population and their constant need for health care, the pharmaceutical industry was Alphia's first knowledge capital based industry. Dr. Satish believes that a focus on knowledge capital will enhance the long term growth prospects of Alphia's economy.
Alphia has access to the same world class technology and capital markets as its more advanced neighbors. Dr. Satish expects Alphia's economic growth rate and income level to converge to that of richer countries over time. Indicate v/hether convergence with richer countries is likely or unlikely. Convergence is:
A. likely, due to Alphia's similar access to capital and technology.
B. likely due to differences in savings rates and target rates of return, but not due to similar access to capital and technology.
C. unlikely, due to differences in savings rates and target rates of return.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The neoclassical growth theory model does indeed imply that given access to the same technology and capital markets, then growth rates and income levels per person should begin to converge on a global basis. While some convergence has occurred over time, many countries are just as far away from the rich countries as they have ever been. This lack of convergence in the real world is probably due to the fact that the neoclassical growth model leaves out many of the variables that must grow at the same rate in different countries for convergence to occur. Obstacles to convergence include differences in population growth rates, in rates of technological change, and most importantly in savings rates and target rates of return. In essence, if the countries do not have similar economic and demographic characteristics, then it would be difficult for them to grow at the same rate. (Study Session 4, LOS 14.d)

NEW QUESTION: 2
The Graphic Design Institute hires you to help them set up a server for their 20-person team.
As a general practice of hardening the server, you start by performing which two tasks? (Choose two.)
A. Disable the guest account.
B. Rename the admin account.
C. Remove the account lockout policy.
D. Format partitions with FAT32.
Answer: A,B

NEW QUESTION: 3

A. Option B
B. Option D
C. Option A
D. Option C
Answer: C,D