131)Answer:TrueFalseDiff: 1Page Ref: 738/332Topic: Growth PoliciesLearning Outcome: Macro 4: Explain the sources of productivity growthAACSB: Reflective Thinking36
SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. 132) Does globalization promote economic growth, and how does globalization affect the welfare of a given countryʹs citizens?132)Answer: More globalized countries generally experience much higher annual growth rates inreal GDP per capita than countries that are less open to foreign trade andinvestment. As countries become more globalized, advances in technology in thosecountries become more likely, and advances in technology are a key to economicgrowth. However, foreign influences in some countries are not always viewed aspositive, as they can have a greater impact on culture than some would like. Inaddition, multinational firms that operate in foreign countries may also pay verylow wages or fail to uphold the same safety and environmental regulations they arerequired to follow in their own countries.Diff: 2Page Ref: 737/331Topic: Growth PoliciesLearning Outcome: Macro 4: Explain the sources of productivity growthAACSB: Reflective Thinking 133) How do government policies that enforce property rights affect economic growth?133) Answer: Without enforceable property rights, entrepreneurs lose the incentive to take on riskbecause they are not assured ownership of their resources. Economic growthsuffers as a result. Failure to protect intellectual property rights has a similarimpact. If the benefits of technological advances are shared with all firms, eachindividual firm has little incentive to invest in the costly research and developmentnecessary for technological progress to continue.Diff: 2Page Ref: 735/329Topic: Growth PoliciesLearning Outcome: Macro 4: Explain the sources of productivity growthAACSB: Reflective Thinking 134) How does government support of health and education programs foster economic growth?134)Answer: 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 thegovernment provides vaccinations or access to clean water, people will be healthierand the economy is more likely to grow. By helping to finance education, the
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- Spring '11
- Economics, AACSB, Page Ref, Reflective thinking, Blum integer, 133