Which one of the following is TRUE?
A) New growth theory suggests that there is no connection between the level of education in a country and its rate of economic growth.
B) New growth theory suggests that education benefits only those people who receive it, and not the population as a whole.
C) Investments in secondary education produce gains in the form of economic growth.
D) Secondary education does not boost economic growth in developing nations, because so much of the workforce remains in agriculture.
C
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Prior to 2008, the bank's cost of holding reserves equaled
A) the interest paid on deposits times the amount of reserves. B) the interest paid on deposits times the amount of deposits. C) the interest earned on loans times the amount of loans. D) the interest earned on loans times the amount on reserves.
Which of the following is an example of a payoff matrix?
a. A chart listing a train's arrival and departure times b. A chart showing the income limits for each tax bracket c. A chart listing the possible outcomes for each decision d. A chart showing the effect of changes in variable input upon total output
Following the U.S. financial crisis in 2008, some observers assert that the policies of Fed Chairman Greenspan contributed to the crisis. Which of the following is a criticism of Greenspan's policies?
I. The very low interest rates used to fight the 2001 recession were maintained for too long, leading to the real estate bubble. II. The Fed provided real estate developers with liquidity to encourage property development and offered tax breaks to first-time home buyers, which in turn fueled the real estate bubble. III. The Fed did not promote appropriate regulations to deal with the new financial instruments that were created in the early 2000s. A) I and II only. B) I and III only. C) II and III only. D) I, II, and III.
A law that restricts plant closings will
A. provide useful market signals to all parties in the industry. B. prevent resources from flowing to their highest-valued uses. C. make the economy more efficient by slowing down the movement of resources to a more optimal rate. D. make the economy more efficient by reducing poor decisions on the part of entrepreneurs.