Answer each of the following questions in 2-3 sentences based on the provided source material.

1. What is the distinction between “proximate causes” and “fundamental causes” of economic growth?
2. Explain the concept of “conditional convergence” as it relates to cross-country income differences.
3. According to Uzawa’s theorem, what specific form must technological progress take for an economy to experience a balanced growth path?
4. How does the Solow Growth Model handle consumer saving decisions, and what is a key limitation of this approach?
5. What is the “golden rule” saving rate in the context of the Solow model?
6. Define the First Welfare Theorem and explain why it may fail to hold in overlapping generations models.
7. What is meant by “dynamic inefficiency” in an overlapping generations economy?
8. Explain the process of “creative destruction” and its role in Schumpeterian growth models.
9. In models of directed technological change, what are the “price effect” and the “market size effect”?
10. What is a key shortcoming of the baseline AK model, and how can it be addressed by incorporating human capital?