List the four major elements that determine productivity growth. Choose one of these factors and explain, using specific examples, the role that it has played in increasing productivity in the United States.
What will be an ideal response?
Students should list physical capital, human capital, natural resources, and technology as the four major factors that determine productivity growth. Which factor is chosen and the examples used will vary. For example, the United States requires that all children receive a basic education and offers financial help for those wishing to pursue secondary and tertiary education. This has raised the country’s stock of human capital and has led to higher productivity. It has also led to an increase in the number of engineers, scientists, entrepreneurs, and others who further increase economic growth through technological progress.
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Which of the following is a discretionary fiscal policy action?
A) a progressive tax system that leads to an increase in income tax revenues during an economic boom B) a deliberate tax cut when the economy experiences high unemployment C) an increase in the amount of unemployment compensation because more people become unemployed D) an increase in Supplemental Security Income payments when more people become eligible for the benefits
The trade between countries is recorded in accounts called the balance of
A) U.S. official trade account. B) payments accounts. C) export and import accounts. D) currency accounts. E) international trade accounts.
A good is considered normal when its income elasticity of demand is ___ and inferior when the its income elasticity of demand is ___
a. Greater than zero, less than zero. b. Less than zero, greater than zero. c. Greater than one, less than one. d. Less than one, greater than one.
When homeowners sell a house, part of the paperwork they complete is a statement of disclosure on which the homeowners are supposed to reveal everything that they know is wrong with the house. The purpose of the statement of disclosure is to try to solve the
a. principal-agent problem. b. moral-hazard problem. c. adverse-selection problem. d. signaling problem.