How does government support of health and education programs foster economic growth?
What will be an ideal response?
As the health of the people in a nation improves, they become more productive. They become stronger and less susceptible to disease. For example, if the government provides vaccinations or access to clean water, people will be healthier and the economy is more likely to grow. By helping to finance education, the government can also improve economic growth. Since the benefits of an education do not accrue exclusively to the person receiving an education, the market may produce an inefficiently low level of education and training. If the government offers subsidies for education, more people will receive an education, and the increase in human capital will increase economic growth (particularly if there are increasing returns to human capital).
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The market for bagels contains two firms: BagelWorld (BW) and Bagels'R'Us (BRU). The owners of the two firms decide to fix the price of bagels. The table below shows how each firm's profit (in dollars) depends on whether they abide by the agreement or cheat on the agreement. 
For Bagels 'R' Us, ________ is a ________.
A. abiding by the agreement; dominant strategy when Bagel World also abides B. cheating on the agreement; dominated strategy C. cheating on the agreement; dominant strategy D. abiding by the agreement; dominant strategy
Which of the following is a significant change in public policy in the U.S. since the 1980s?
A. Significant decrease in property tax rates B. Decline in tax rates on capital gains C. Increase in tax rates on carried interests D. Significant increase in inheritance tax rates