Exam 24: Economic Growth: Theory and Policy

What is the price of investment? How are they related? What has to be done to increase investment?

Capital gains are profits that you earn on the sale of your

From 1979, which country had the highest growth rate of GDP per hour of work?

Because the Soviet Union educated more scientists and engineers than the United States, their level of economic growth was higher.

In most rich countries, adult citizens typically have a

In 2010 President Obama proposed more generous tax write-offs for businesses that invest in additional equipment in order to stimulate investment spending.

Properly enforced property rights will usually cause

The "cost disease of personal services" phenomenon predicts that the price of tickets to baseball games and cell phone rates will increase at approximately the same rate.

Capital investment becomes more profitable for a business firm as the real interest rate decreases.

The profitability of an investment project will decrease if

The business sector in the United States has the most influence on

Workforce quality can be improved by

The fall of actual GDP below the level of potential GDP is a signal that the economy is in a recession.

What determines the productivity growth rates of a country?

In most countries, primary and secondary education is the responsibility of the

Investment spending, capital formation, and rapid technological progress are directly related.

The process of innovation is the act of

A recession will occur if an economy's actual GDP ____ its potential GDP.

Real wages usually lag behind the increases in labor productivity.

During the mid to late 1990s, the incentives for investment spending were provided by rising