This module provides a general framework for the study of economic growth. The model allows to understand both, growth in developed and developing economies, and the level of income across countries. In the model, developing countries exhibit lower income because they are thought to have the equivalent of an implicit tax on capital (because of bribes or frictions for doing business), which reduces investment, output, and wages.The question of income differences across countries is a big puzzle among economists. If you think for a moment about the issue, natural questions arise: why are the gaps so large given that capital and technology can move around the world, and that countries’ populations can be educated? Part of the explanation lies in history and its by-product, institutions: rules and norms that govern social and economic interactions.In this box you have to synthesize the theoretical and empirical aspects that explain the gap between rich and poor nations. Theory suggests that a “tax” on capital reduces investment, wages, and output; on the flip side, in practice, weak institutions in the form of bribes or heavy regulatory burden, for instance, lead to the same result.The challenge in this box is to lay out both lines of reasoning (growth theory and institutions) and illustrate the point using the resources below.- Go to worldbank.org and look for the World Development Indicators. Once you are there pick a developing country (or countries ---could be more than one) and also look for the USA. Retrieve the data for GDP per capita starting in the year 2000, up to the latest available year. There are many variables with that name so pick: GDP per capita constant -“latest year”-US$; the series are constantly updated, so look for the latest base-year available.- Look online for the Worldwide Governance Indicators and match the countries and years that you have picked from the World Bank. There are six categories for institutional scores, you can focus on one only, on all (average), or on a few. You will find a percentile ranking and an absolute score. The absolute score, which ranges between -2.5 to 2.5, is better suited for this analysis so use that one.In this box talk about the income gap between the countries in general [25 points]. Explain through the lens of the theory and institutions why this is the case [25 points]. Discuss whether there is evidence of convergence/divergence in income terms [25 points] and institutional quality [25 points] among your selection of countries.When talking about the theory be sure touch on the set up of the model, interpretation, and its predictions. A good reference to get a sense of the role of institutions in economic performance read Hali Edison, “How strong are the links between institutional quality and economic performance?”, Finance and Development, June 2003, Vol. 40, Num. 2, International Monetary Fund. There is a large literature on the topic, but this a good introduction. In the box do not focus on the existing literature, but rather on the complementarity between the theory and institutions to explain the issue for a reader that does not much about either. This type of exercise is useful for, say, a firm looking to expand into foreign markets.

"One of the most ridiculous government enterprises is the Patent Office. It permits inventors of new processes and products to create monopolies and to reduce competition when we know very well that monopolies and reduced competition reduce output, raise prices and in other ways gouge the public."Specify whether you "Generally Agree" or "Generally Disagree" with the statement. Give two or more examples to support your views.

Option A:Reflect on the reading about power. Researchers argue that one of the reasons some people have power over others is that individuals are so quick to conform. Several classic studies, including the Asch Studies, help to illustrate this idea. Watch the following video about the Asch Studies, and think about the "real-life" implications. Then watch the next video which is a more modern conformity experiment, and think about the "real-life" implications of this experiment.Asch Studies:Link (Links to an external site.)Minimize VideoConformity experiment:Link (Links to an external site.)After watching the videos, answer the below questions:From your perspective, taken together, what are some "real-life" implications of these studies? Explain and discuss. [up to 25 points possible]In your opinion, how might conformity play a role in the workplace? Explain and discuss. [up to 25 points possible]In your opinion, how can an awareness of this information help you in the workplace? Explain and discuss. [up to 25 points possible]One could argue that these are just silly experiments taking place in a somewhat controlled setting but that such conformity would not take place in the real world. In your opinion, do you agree or disagree? Why? Explain and discuss. [up to 25 points possible]Option B: (PLEASE DISREGARD--DO OPTION A or SEE 7TH EDITION IN GOOGLE BOOKS). After reading Chapter 15, read the Point/Counterpoint "The End of Management" on p. 517 of your text book, and answer the following questions:From your perspective, with what particular points do you agree? Explain and discuss. [up to 25 points possible]From your perspective, with what particular points do you disagree? Explain and discuss. [up to 25 points possible]In your opinion, do you think the trend toward flatter, more organic organizations will continue? Explain and discuss. [up to 25 points possible]In your opinion, how do you think the field of management will evolve over the next 10 years? Explain and discuss. [up to 25 points possible]