Economic Growth and Human Capital

What is a possible consequence of reducing benefits on the labour market?

An increase in the quantity of labour

How can raising the minimum wage help reduce the unemployment trap?

By making work more attractive to workers

What is a benefit of investing in infrastructure development?

An increase in the productive capacity of the economy

What is a result of subsidies for R&D and technological progress?

An improvement in the quantity and quality of capital Signup and view all the answers

What is a consequence of an increase in the productive capacity of the economy?

An increase in output and long run economic growth Signup and view all the answers

What is a potential result of reducing the unemployment trap?

An increase in output and long run economic growth Signup and view all the answers

What is the primary effect of reducing trade union power on inflation?

Reduced cost of production for firms Signup and view all the answers

What is a potential drawback of infrastructure development projects?

Overspending and cost overruns Signup and view all the answers

What is a potential unintended effect of cutting corporation tax rates?

Increased payments to shareholders Signup and view all the answers

What is a time-related challenge associated with supply-side policies?

Time lags in implementation and effects Signup and view all the answers

What is a potential outcome of reducing income tax rates?

Workers working less Signup and view all the answers

What is a potential opportunity cost associated with supply-side policies?

Alternative investments not pursued Signup and view all the answers

What is the primary consequence of an increase in education and training of workers on the economy?

Higher output and long run economic growth Signup and view all the answers

How would a reduction in direct taxes on workers and firms affect the economy?

Increased incentive to work longer hours, leading to higher output Signup and view all the answers

What is the primary reason for a shortage of skilled and educated workers in developing economies?

Limited access to education and training Signup and view all the answers

What is the result of an increase in human capital in an economy?

Higher output and long run economic growth Signup and view all the answers

How would the immigration of skilled workers affect the productive capacity of the economy?

Increased productive capacity due to increased human capital Signup and view all the answers

What is the primary benefit of reducing corporation tax on firms?

Firms will retain more of their profits to invest in capital Signup and view all the answers