EP ECONOMICS,AP EDITION-CONNECT ACCESS
EP ECONOMICS,AP EDITION-CONNECT ACCESS
20th Edition
ISBN: 9780021403455
Author: McConnell
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 26, Problem 8RQ
To determine

Given scenario related with different types of growth.

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How does the role of government influence economic growth? As the size of government increases as a share of the economy, how is the growth rate of real GDP likely to be affected? Explain.
Which of the following statements best describes the relationship between Economic Growth and Literacy Rates ?   A. Literacy Rates decline as Economic Growth improves because Education is less useful in a developed economy.   B. Increased Literacy initially stimulates Economic Growth by improving Labour Productivity but declines as the Opportunity Cost of Education increases with long-term Economic Growth.   C. Increased Literacy stimulates Economic Growth by increasing Labour Productivity; People consume more Education as the Economy continues to grow.   D. There is no correlation between Economic Growth and Literacy Rates.
“Economic growth doesn’t simply depend on having more natural resources, more or higher-quality labor, more capital and so on; it depends on people’s incentives to put these resources together to produce goods and services” Do you agree or disagree? Why? Explain.
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