Investment in capital is important because it A-decreases productivity. B-leads to lower taxes. C-increases productivity. D-leads to higher taxes.
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- To increase productivity the most a) the skilled educated labor force must grow faster than capital spending increases b) capital must be greater than zero c) capital must increase faster than the increase in the skilled educated labor force d) capital must increase at the same rate as the skilled educated labor force expandsThe long-run effects of an increase in the saving rate include...? a. a higher level of productivity. b. a higher growth rate of productivity. c. a higher growth rate of income. d. All of the above are correct.What is gross capital formation reflecting in terms of GDP of a country? What it indicates when the value is high or low?
- In the long run, capital deepening, a. doesn't change the level of productivity or income. b. raises the levels of both productivity and income. c. Raises the level of productivity but not the level of income. d. raises the level of Income but not the level of productivityHigher business tax *(A) increase inflation(B) decrease inflation(C) does not directly affect economic growth or cannot be determinedAn increase in the amount of human capital in the economy will ["decrease", "remain unchanged", "increase"] the productivity of labor. As a result, average real income in the economy will["decrease", "increase", "remain unchanged"] . PreviousNext
- As an economic and accounting analyst, which of the two should a government pay more attention for domestic and economic growth? increase importation of goods and services increase export of goods and services Choose the best answer and explain.Q)If the economy is in a steady state, then A. both consumption per worker and capital per worker are decreasing. B. both consumption per worker and capital per worker are constant. C. consumption per worker is decreasing but capital per worker is constant. D. consumption per worker is constant but capital per worker is decreasing.A nation's real GDP was $250 billion in Year 1 and $265 billion in Year 2. Its population was 120 million in Year 1 and 125 million in Year 2. What is its real GDP growth rate in Year 2? Multiple Choice 15.0 percent 6.0 percent 5.7 percent 1.1 percent
- In a hypothetical economy, real GDP is $10 trillion, investment is $2 trillion, the capital stock is $20 trillion, the depreciation rate is 4.5% and the labor supply growth rate is 1%. Which statement is correct? Capital per worker is increasing in this economy Aggregate demand is decreasing in this economy Aggregate demand is increasing in this economy Capital per worker is decreasing in this economyTrue or false. As a capitalist economy, the vast majority of U.S. national income flows to the owners of capital.An increase in net investment leads to faster economic growth because capital per worker and output per worker will change in which of the following ways?Capital per Worker Output per worker(A) Increase. Increase(B) Increase. Decrease(C) No change. Increase(D) Decrease. Increase(E) Decrease. Decrease
