High rates of saving and investing in the private sector promote economic growth by:
A)increasing human capital.
B)improving the social and legal environment.
C)increasing physical capital.
Which of the following is consistent with a political and legal framework that discourages economic growth?
A)The allocation of bank credit by the government rather than by markets
B)A speedy approval process for new businesses
C)Agricultural prices that are allowed to vary according to market conditions
D)Taxation and regulation that are not very burdensome
In order to increase the capital stock,society must divert ______ that could be otherwise used to increase the supply of _____.
Additional economic growth should be pursued when:
A)new technologies are discovered.
C)the marginal costs of growth exceed the marginal benefits.
D)the marginal costs of growth are less than the marginal benefits.