/*! This file is auto-generated */ .wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none} Q7. True or False. Computers and inc... [FREE SOLUTION] | 91影视

91影视

Log out

Learning Materials

Features

Discover

Chapter 8: Q7. (page 173)

True or False. Computers and increased global competition have retarded economic growth in recent decades.

Short Answer

Expert verified

The statement is false.

Step by step solution

01

Step 1. Meaning of economic growth.

Economic growth measures the increase in real GDP from one period to another. If the current GDP is greater than the base year, then the economy is said to be experiencing economic growth, otherwise experiencing retarded economic growth.

02

Step 2. Reason behind the incorrectness of statement.

The invention of computers and increased global competition have created an explosion of entrepreneurship and innovation-based career opportunities. The invention of high-speed internet has made the whole world into one global market. Technology and the internet have enabled laborers to produce and supply more goods and services for this market under different start-ups. It shows that labor productivity has increased because of computers and increased global production.

Since real GDP is the product of labor input and productivity of labor, an increase in the productivity level of laborers will increase the real GDP, which shows the promotion of economic growth. Hence, the statement that computers and increased global competition have retarded economic growth is incorrect.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91影视!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Assume that a leader country has real GDP per capita of \(40,000, whereas a follower country has real GDP per capita of \)20,000. Next, suppose that the growth of real GDP per capita falls to zero percent in the leader country and rises to 7 percent in the follower country. If these rates continue for long periods of time, how many years will it take for the follower country to catch up to the living standard of the leader country?

True or False. Countries that currently have a low real GDP per capita are destined to always have lower living standards than countries that currently have a high real GDP per capita.

True or False: If false, explain why.

a. Technological advance, which to date has played a relatively small role in U.S. economic growth, is destined to play a more important role in the future.

b. Many public capital goods are complementary to private capital goods.

c. immigration has slowed economic growth in the United States.

When and where did modern economic growth first happen? What are the major institutional factors that form the foundation for modern economic growth? What do they have in common?

If real GDP grows at 7 percent per year, then real GDP will double in approximately ________ years.

a. 70

b. 14

c. 10

d. 7
See all solutions

Recommended explanations on Economics Textbooks

Taxation Economics

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.