Describe ways that governments can promote faster economic growth
What will be an ideal response?
Policies for increasing the economic growth rate are 1 ) Stimulate saving (for instance, tax incentives could be directed at increasing saving which will then increase the capital stock); 2 ) Stimulate research and development (inventions can be copied, so government subsidies can lead to more inventions that spread throughout the economy); 3 ) Encourage international trade (free international trade encourages economic growth because free trade extracts all the possible gains from specialization and exchange); 4 ) Improve the quality of education (education creates benefits beyond the ones enjoyed by the students who receive education).
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Productivity refers to the value of what is produced per worker or per hour worked
a. True b. False Indicate whether the statement is true or false
Holding the mean constant, the larger the standard deviation, the ________ the gamble will be.
A. less risky B. more risky C. higher utility D. None of the statements is correct.