Questions

NFLS2024ECON11 Ungraded Questions - Macroeconomic Theories and Long-Run Economic Growth

Matching

Match each government action to the determinant of long-run economic growth that it best helps to increase. 1: Subsidizing research at universities and other centers of higher learning. 2: Patent protection for new inventions 3: Directly performing research and development in a government agency. 4: Ensuring the stability of the financial system 5: Building infrastructure 6: Spending on education 7: Protecting physical private property rights

Options

A.Physical capital

B.Technology

C.Human capital

View Explanation

Verified Answer

Please login to view

Step-by-Step Analysis

Here is the step-by-step reasoning for matching each government action to the determinant of long-run economic growth it best helps to increase. 1) Subsidizing research at universities and other centers of higher learning. -> Technology - This activity directly promotes the creation and dissemination of new ideas, knowledge, and innovative capabilities, which are the core elements of technology as a determinant of growth. By funding R&D and scholarly work, the economy enhances its productive knowledge base. - Why not Physical capital, Human capital, or other determinants? Substantial physical capital (machinery, buildings) is not the primary outcome here; the emphasis is on new ideas rather than more or better capital stock. Human capital growth can accompany education subsidies, but the central linkage of this subsidy is to knowledge creation, i.e., technology. - Why not an option claiming this affects financial or institutional factors......Login to view full explanation

Log in for full answers

We've collected over 50,000 authentic exam questions and detailed explanations from around the globe. Log in now and get instant access to the answers!