What factors generate economic growth?
What will be an ideal response?
Two key factors create economic growth: Technological change and capital accumulation, including the accumulation of additional human capital. Both technological change and capital accumulation shift the nation's PPF outward.
You might also like to view...
Suppose Bob leaves his $50,000-a-year job as a financial advisor to P.E.T.S. and starts his own business selling pet-care products. In the first year, his accounting profit is $70,000. Based on this level of success, Bob should:
a. return to his old job because his economic profit is negative. b. return to his old job because his economic profit is smaller than his accounting profit. c. return to his old job because his economic profit is less than his old salary. d. stay with his new firm because his economic profit is positive. e. stay with his new firm because accounting profit is positive.
Which of the following is an example of a normative statement?
A) Since this good is bad for you, you should not consume it. B) This good has bad health effects. C) If you consume this good, you will get sick. D) People usually get sick after consuming this good.
The production possibilities curve for the nation of Economania shifts to the right. This could have been caused by:
a. a decrease in Economania's capital stock. b. a decrease in the Economania's labor supply. c. high unemployment in Economania the previous time period. d. Economania producing all consumer goods in the previous period. e. technological innovation in the production of Economania goods.
In the case of a nonexcludable public good, the market will fail to produce the good because of the free rider problem
Indicate whether the statement is true or false