Summarize the historical growth record of the United States over the past 50 years in terms of real GDP growth and in terms of real GDP per capital growth. What three qualifications should be made about these growth rates?
What will be an ideal response?
The real GDP has increased about 3.1% per year between 1950 and 2012. Real GDP per capital rose more slowly because population has grown along with GDP. Still the GDP per capital growth has increased at roughly 2% per year between 1950 and 2012. Economic growth in the United States has provided for improved products and services, added leisure and other environmental and quality of life effects such as stronger environmental protection.
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A lesson from the Brazilian experiment was that:
a. infant industry protection is almost never successful. b. there are many determinants other than market price that also factor into an industry's success—firms had supplier difficulties and were hampered by excessive regulation. c. government usually knows better than the market whether an industry has potential. d. when politicians get involved, rational decisions and good business practices are more difficult.
Scarcity is a situation in which ________
A) some people are poor and others are rich B) something is being wasted C) we are unable to satisfy all our wants D) long lines form at gas stations