Many economists believe that technological progress in the U.S. would be accelerated if: a) less money were spent in funding research and development in defense- related areas and more money were spent in other areas. It often involves a way of purchasing goods and services that differs from the traditional business model of companies hiring employees to produce products to sell to consumers. Higher productivity makes possible a higher standard of living because it allows society to increase the consumption of goods and services, or leisure, or environmental quality, or all three. Every one of these policies failed to increase economic growth. Economic growth allows a society to consume. GDP is merely a metric that represents the total production of all goods and services in an economy. Refer to Figure 17.2. Decrease the natural rate of unemployment. A rapid increase in population is likely to: b) raise real GDP, but lower real GDP per capita. Socialism, which is an economy controlled by the central state, provides for a greater social welfare and decreases business fluctuations. The highest unemployment rate occurs when the economy is at Point _____. Second, it allows the free market and the laws of supply and demand to determine prices. Making comparisons of real GDP across countries is difficult because: If the capital-labor ratio of an economy decreases, ceteris paribus: c) output decreases because of diminishing marginal returns. Technology has revolutionized virtually every industry in the economy. As a result, stock prices rise. This unemployment is best described as... You have been jobless for the last 6 weeks, and are still looking for the right job. At the heart of it, research and development (R&D) activities allow scientists and researchers to develop new knowledge, techniques, and technologies. As technology changes, people can produce more with either the same amount or fewer resources, thereby increasing productivity. Which of the following is a public investment in infrastructure? More specifically, economics is the study of the opportunities made possible by the production, distribution, and consumption of goods and services. When a society decides to increase its quantity of physical capital, the society a. can avoid the usual need to face trade-offs. Economic growth creates more profit for businesses. c) The city of Robesonia builds a new sewage treatment plant. You are: As the economy moves out of a recession, the discouraged worker effect will tend to __________ the unemployment rate. These are most commonly described as the creation of jobs and wealth, and the improvement of quality of life. Economic growth - Economic growth - The role of government: The differences in rates of growth are often attributed to two factors: government and entrepreneurship. Some frictional and structural unemployment. Economic growth derived from all these technological marvels does indeed feed on itself, as consumers demand more and more. Economic growth is an increase in the production of goods and services in an economy. Capitalism affords economic freedom, consumer choice, and economic growth. As productivity grows, so does the economy. Labor-saving robots are introduced into a car assembly line. Suppose that during the last year growth in output due to growth in labor and capital was 4%. A command economy does not allow market forces like supply and demand to determine what, how much, and at what price they should produce goods and services. For economic growth to increase living standards: a) society must discover ways of using available resources more efficiently. TAP THE ARROWS BELOW TO ADVANCE. Its goal is to allocate resources to maximize social welfare. The major differences between capitalism and socialism are established around the role of the government and equality of economics. economic development can be described in terms of objectives. Economic growth allows a society to consume. However, poor countries that have adopted free-trade policies have experienced high economic growth, with China and India as prime examples. economic growth allows a society to consume: improved resource allocation Workers moving over time from low-productivity to high-productivity employment refers to which of the factors of productivity growth? The two are not mutually exclusive. CLICK THE ARROWS BELOW TO ADVANCE. The resulting unemployment is.... Arbez is producing at the full-employment level of production. Recently, a flood of cheap computer chips has poured over the border from Arboc to Arbez. 3.A wider variety of goods. 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