Tim buys a house from Betty in 2011 for $200,000. Betty receives $185,000 and $15,000 goes to Mary, the real-estate agent. Betty originally purchased the house in 2007 for $240,000. What value is added to GDP in 2011 for this transaction?
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$15,000 |
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$40,000 |
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$200,000 |
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$65,000 |
Which of the following would be most effective in ensuring sustained long-term economic growth?
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increasing technological knowledge |
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increasing human capital |
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increasing government control of land use |
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increasing physical capital |
Under a wage rate, workers do not have an incentive to work harder unless they can do so at low cost.
True
False
What causes economic growth? Explain in simple terms please...
1. Ans: $15,000
Explanation:
Value added in 2011 = 200,000 - 185,000 = $15,000
2. Ans: Increasing technological knowledge
Explanation:
Long term Economic growth refers to sustained increase in the quantity of output produced. Advanced technology helps in increasing the productivity of human capital. This leads to a sustained increase in Production.
3. Ans: True
4. An economic growth is caused by an effective and efficient use of inputs, i.e., materials, human capital, physical capital, etc. Advanced technology also helps in increasing the productivity of human capital. This also increases production leading to increase in GDP.
Tim buys a house from Betty in 2011 for $200,000. Betty receives $185,000 and $15,000 goes...