Question 1

In order to promote growth in living standards,policymakers must&#10;A)protect property rights.&#10;B)maintain political stability.&#10;C)&#8203;encourage the accumulation of factors of production.&#10;D)&#8203;All of the above

Accepted Answer

To promote growth in living standards, policymakers must protect property rights, maintain political stability, and encourage the accumulation of factors of production. Protection of property rights is necessary to ensure that individuals have the incentive to invest and innovate. Political stability is essential to ensure a favorable environment for investment and economic activity. Encouraging the accumulation of factors of production such as physical capital, human capital, and natural resources is essential for sustained economic growth. Therefore, policymakers must do all of the above to promote growth in living standards.

Question 2

Economists differ in their views of the role of the government in promoting economic growth.A controversial idea is that government should&#10;A)lend support to the invisible hand by maintaining property rights and political stability.&#10;B)lower barriers and impediments to free trade.&#10;C)encourage capital formation.&#10;D)target and subsidize specific industries important for technological progress.

Accepted Answer

D

Deck 25: Sec 254 Mc Conclusion the Importance of Long-Run Growth