Which Of These Government Policies Can Help Economic Growth

Question: If a firm increases its use of capital while holding constant the number of workers employed, the firm is said to experience

Answer: an increase in the physical capital

Question: Which of these is (are) most likely to increase productivity

Answer: Investments in research and development

Question: Which of these government policies can help economic growth

Answer: Ensuring political stability and relatively little corruption

Question: Economic growth initially leads to __

Answer: higher living standards

Question: Which of these statements about the benefits of economic growth is true

Answer: Economic growth can help people at all income levels

Question: The prediction that the per capita GDP of poor nations will eventually grow at a more rapid pace than the per capita GDP in rich nations is known as

Answer: catch-up

Question: When population growth results in a lower output per worker, it is an illustration of which key principle in economics

Answer: The principle of diminishing returns

Question: The application of mechanical power to the production process that started in England around 1750 is known as

Answer: the Industrial Revolution

Question: Before capital accumulation can take place, __

Answer: household savings must be converted into business investment

Question: Suppose the growth rate of GDP in the United States is 2.9 percent. If 1.2 percent and 0.9 percent are due, respectively, to capital and labor growth, the amount resulting from technological progress is

Answer: 0.8 percent