Economic Growth Is Often Associated with Structural Change in the Economy,and

question 48

Multiple Choice

Economic growth is often associated with structural change in the economy,and this change can present difficult policy challenges to governments.Which of the following government policies would be most useful at addressing the social costs of economic growth?

• A)expansionary monetary policy
• B)the imposition of trade restrictions to protect Canadian jobs
• C)subsidies directed at Canadian manufacturing firms
• D)worker re-training and education programs
• E)reducing income taxes

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Definitions:

Cost Method

An accounting method used for investments, where the investment is recorded at acquisition cost without recognizing its undistributed earnings.

Treasury Stock

Shares of a company's own stock that it has reacquired from shareholders and holds in its treasury for future use.

Accounting

The information system that identifies, records, and communicates the economic events of an organization to interested users.

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing corporation, reducing the amount of outstanding stock.