131 answer true false diff 1 page ref 738332 topic

131)
Answer: True False
Diff: 1 Page Ref: 738/332
Topic: Growth Policies
Learning Outcome: Macro 4: Explain the sources of productivity growth
AACSB: Reflective Thinking
36

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 country ʹ s citizens?
132)
Answer: More globalized countries generally experience much higher annual growth rates in
real GDP per capita than countries that are less open to foreign trade and
investment. As countries become more globalized, advances in technology in those
countries become more likely, and advances in technology are a key to economic
growth. However, foreign influences in some countries are not always viewed as
positive, as they can have a greater impact on culture than some would like. In
addition, multinational firms that operate in foreign countries may also pay very
low wages or fail to uphold the same safety and environmental regulations they are
required to follow in their own countries.
Diff: 2 Page Ref: 737/331
Topic: Growth Policies
Learning Outcome: Macro 4: Explain the sources of productivity growth
AACSB: 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 risk
because they are not assured ownership of their resources. Economic growth
suffers as a result. Failure to protect intellectual property rights has a similar
impact. If the benefits of technological advances are shared with all firms, each
individual firm has little incentive to invest in the costly research and development
necessary for technological progress to continue.
Diff: 2 Page Ref: 735/329
Topic: Growth Policies
Learning Outcome: Macro 4: Explain the sources of productivity growth
AACSB: 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 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