First, what are the primary determinants of output per worker? And second, to what extent can each cause a permanent change in economic growth?
What will be an ideal response?
The two primary determinants of growth are capital accumulation and technological progress. Capital changes when there are changes in investment and, therefore, the saving rate. Because the saving rate cannot increase forever, capital accumulation cannot cause permanent changes in economic growth. Technological progress, on the other hand, can result in permanent changes in economic growth.
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In 1950, Social Security benefits increased by over 50 percent
a. True b. False
In the short run, specific taxes on a firm result in
a. price increases that may not persist in the long run. b. an increase in consumer surplus because the tax permits spending in additional government services. c. shortages of the good being taxed. d. an increase in producer surplus because of the rise in price.
Which of the following is not a resource for a society?
a. capital goods, like factories and machine tools b. entrepreneurship c. legal institutions d. labor
Business cycles are a persistent feature of the U.S. economy
a. True b. False Indicate whether the statement is true or false