Question

According to the World​ Bank's annual​ report, Doing

Business​,

A.

population composition is the most important factor influencing economic growth.

B.

technology is the only factor influencing economic growth.

C.

the quality and quantity of regulations matter for economic growth.

D.

the most wealthy countries also have significant levels of regulation.

Recent studies of how regulations affect economic growth have found that

A.

a movement from being ranked in the lowest​ one-fourth of nations to a rating in the top​ one-fourth is associated with an increase in annual economic growth of about 18 percent.

B.

small changes in a​ country's ease-of-doing-business rankings have significant effects on a​ nation's economic growth prospects.

C.

a​ country's ease-of-doing-business ranking has not shown a significant relationship to a​ nation's economic growth prospects.

D.

only a substantial change in a​ country's ease-of-doing-business rankings is associated with significant improvements in that​ nation's growth prospects.

Issues​ & Applications: Both Quality and Quantity of Regulations Matter for Economic Growth

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If everything else remains​ constant, improvements in labor productivity

A.

ultimately lead to economic growth and higher living standards.

B.

are not measured very well.

C.

have shown little relationship to economic growth and higher living standards.

D.

are very difficult to achieve.

Labor productivity is

A.

not measured very accurately so its impact on GDP growth is unclear.

B.

one of the three components contributing to per capita GDP growth.

C.

measured by dividing total income by the number of workers or the number of labor hours.

D.

dependent on the measurement of the labor force.

Which of the following is most likely to lead to secular​ stagnation?

A.

a change in gun ownership laws

B.

a requirement that all firms slash carbon emissions by 20 percent

C.

a rule limiting the release of pollutants from one type of power plant

D.

a change in the speed limit on local roads

Which of the following is not a cause of secular​ stagnation?

A.

increased payoffs from investments in human capital

B.

​growth-retarding effects of governmental and regulatory policies

C.

a failure of new technologies to yield significant productivity growth

D.

relatively low rates of growth of capital and labor resources