The Jones family has always been in the business of manufacturing and selling automobile tires. Usually the profit they earn is reinvested in the business. This year Seth, the youngest son, wants to invest the profit into starting a candy company. If Seth is a shrewd businessman, what does his suggestion indicate?
If we assume that Seth has no special passion for the candy business, then he must believe the money will get a higher rate of return by investing in the candy company than in the tire business. We do not know if this suggestion is based on immediate or potential rates of return.
Economics
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Suppose the growth in GDP per hour resulting from physical capital in an economy is 1% and the growth resulting from human capital is 2%. If the annual growth rate of GDP per hour is 5%, the growth resulting from technology equals:
A) 4%. B) 3%. C) 2%. D) 1%.
Economics
Which of the following can be a barrier to an LDC's economic growth and development?
a. Low population growth. b. A low level of human capital. c. Faster capital accumulation. d. More infrastructure.
Economics