Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 25, Problem 7MCQ
To determine
To identify:
The option that correctly states the source of
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Why one nation experiences economic growth and another does not is a question that has intrigued economists since Adam Smith wrote An Inquiry into the Nature and Causes of the Wealth of Nations in 1776. Explain why each of the following would limit economic growth.a. The politically connected elite secure a large share of a country’s output and put the proceeds into foreign banks.having a small political elite that makes all the calls and decisions will lead to a small economic elite. b. The national philosophy is “Live for the moment and forget about tomorrow.”
c. The government closes all of the schools so more people will be available for work.d. The country fears military invasion and spends half of its income on military goo
Which of the following statements best describes the relationship between Economic Growth and Literacy Rates ?
A.
Literacy Rates decline as Economic Growth improves because Education is less useful in a developed economy.
B.
Increased Literacy initially stimulates Economic Growth by improving Labour Productivity but declines as the Opportunity Cost of Education increases with long-term Economic Growth.
C.
Increased Literacy stimulates Economic Growth by increasing Labour Productivity; People consume more Education as the Economy continues to grow.
D.
There is no correlation between Economic Growth and Literacy Rates.
• Which of the following is not a requirement for increased growth?
a. Capital expenditure
b. Increased labor force
c. Increased productivity
d. Increased human capital
e. All of the given choices
f. None of the given choices
g. First and second choice only
• Within the framework of the Production Possibility Frontier, Which of the following options is not a component of economic growth?
a. Price controls
b. Technological advancement
c. Physical capital and human capital formation
d. Labor force growth
e. All of the given choices
f. None of the given choices
g. First and fourth choice only
Chapter 25 Solutions
Foundations of Economics (8th Edition)
Ch. 25 - Prob. 1SPPACh. 25 - Prob. 2SPPACh. 25 - Prob. 3SPPACh. 25 - Prob. 4SPPACh. 25 - Prob. 5SPPACh. 25 - Prob. 6SPPACh. 25 - Prob. 7SPPACh. 25 - Prob. 8SPPACh. 25 - Prob. 9SPPACh. 25 - Prob. 10SPPA
Ch. 25 - Prob. 11SPPACh. 25 - Prob. 12SPPACh. 25 - Prob. 1IAPACh. 25 - Prob. 2IAPACh. 25 - Prob. 3IAPACh. 25 - Prob. 4IAPACh. 25 - Prob. 5IAPACh. 25 - Prob. 6IAPACh. 25 - Prob. 7IAPACh. 25 - Prob. 8IAPACh. 25 - Prob. 9IAPACh. 25 - Prob. 10IAPACh. 25 - Prob. 1MCQCh. 25 - Prob. 2MCQCh. 25 - Prob. 3MCQCh. 25 - Prob. 4MCQCh. 25 - Prob. 5MCQCh. 25 - Prob. 6MCQCh. 25 - Prob. 7MCQCh. 25 - Prob. 8MCQ
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- Define Economic Growth. How has migration into America over the past 400 years contributed to economic growth.arrow_forwardThe following are the main factors that drive economic growth except: A. Agrarian Reform B. Accumulation of capital stock C. Increases in labor inputs, such as workers or hours worked D. Technological advancementarrow_forwardIn the long run, what will be the source of a country’s economic growth? a.Labor laws b.Labor productivity c.Labor issue d.Labor costsarrow_forward
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- All of the following are examples of the costs of economic growth except: OA. the skills of some workers will become obsolete B. existing firms are overtaken and made obsolete by new firms O C. the economy will have a very high inflation rate OD. people in the economy will consume fewer computers for some period of timearrow_forwardHow does an increase in human capital affect economic growth? Put the following steps in sequence. Drag and drop options into correct order and submit. For keyboard navigation. SHOW MORE V = The workforce can produce a greater real GDP. There is a greater amount of capital that workers can use. This causes real GDP per worker to increase. Each worker can increase the number of goods and services produced. With enhanced skills each worker can produce more than before. Workers increase their education and skills. IIarrow_forwardA nation can achieve higher economic growth if Select one: a. the government increases the taxes on investment capital. b. it devotes more resources to research and development. c. it focuses its resources on consumption goods.arrow_forward
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