List and explain five different actions the government can take to promote long-
A maximum of 10 points can be earned for any 5 of the 6 possible actions/descriptions.
1 point: Build infrastructure
1 point: The government can provide roads, power lines, ports, rail lines, and related systems to support economic activity.
1 point: Invest in human capital
1 point: The government can improve access to quality education.
1 point: Invest in research and development
1 point: The government can promote technological progress by having government agencies support and participate in R&D.
1 point: Provide political stability
1 point: The government can create and maintain institutions that make and enforce laws that promote stability.
1 point: Establish and protect property rights
1 point: Growth is promoted by laws that define what property belongs to whom and by institutions that defend those property rights.
1 point: Minimize government intervention
1 point: The government can limit its intervention in the economy and promote competition.
What roles do physical capital, human capital, technology, and natural resources play in influencing the differences in long-
Rubric for FRQ 2 (5 points)
1 point: Countries that have increased their stock of physical capital more rapidly than others have experienced higher rates of economic growth.
1 point: Countries that have made relatively large investments in education to add to their human capital have experienced higher rates of economic growth.
1 point: Countries that have devoted a lot of resources to R&D have enjoyed technological progress, which is a key driver of economic growth.
1 point: Historically, natural resources played a prominent role in determining productivity, while today they play a less important role in increasing productivity than do increases in human or physical capital in most countries.