Give the approximate importance of productivity as a source of economic growth in the United States and list the various sources which account for this productivity growth and their relative importance.
What will be an ideal response?
Improved productivity accounted for most of the economic growth in the United States in recent years. It is estimated that of this, 40 percent was a result of technological advance, 30 percent was due to increased capital, 15 percent was due to education and training, and 15 percent was due to economies of scale.
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Markets are best defined as
A) arrangements where buyers and sellers get together to buy and sell. B) specific geographic locations where people get together to buy and sell. C) hypothetical constructs used to analyze how people form their tastes and preferences. D) places where people can inspect goods and services carefully.
Any activity designed to transfer income or wealth to a particular individual or firm at society's expense is called:
A. X-inefficiency. B. rent-seeking. C. price discrimination. D. patent protection.