Macroeconomics
21st Edition
ISBN: 9781259915673
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Chapter 8, Problem 4RQ
To determine
Given scenario and economic growth .
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Question 5
Sort the items below according to whether they promote economic growth, inhibit economic growth, or have no effect on economic growth
A. The use of competitive markets to allocate goods and services
A. Promote economic growth
A.
The creation of a price floor on sugar
B. inhibit economic growth
A.
Laws preventing industrial espionage
C. No effect on economic growth
Clear laws regarding the transfer of property
A corrupt government
The development of regulations that make creating a small business
difficult
A.
B.
B.
B. A nation's central bank declares it will print money to pay for government
expenditures.
A Moving to another question will save this response.
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Economic Growth – End of Chapter Problem
One analyst predicts that self-driving cars will ultimately reduce the number of cars that are produced. She argues that
because self-driving cars can drive other people rather than sitting in people's driveways and garages, the United States will
need to produce fewer cars. She argues that growth will slow because we are producing a decreasing number of cars each
year. Do you agree? Why or why not?
Producing fewer cars, everything else equal, will
economic growth. However, the resources no longer used
to produce cars
be used to produce other items. Furthermore, the self-driving cars could
opportunities for new businesses, which would have the
effect. Therefore, the ultimate impact self-driving
cars would have on economic growth is
Which of the following countries would be more likely to experience strong economic growth, other things equal?
Group of answer choices
Country JKL’s government has the right to take away property from individuals to distribute to government officials as they are better suited to have successful businesses.
Country ABC has an extensive set of business laws and property rights laws which promote trust in economic activity.
Country DEF has common property laws and economic activity is regulated by a national council.
Country GHI enforces private property rights only for some groups in society.
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