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:

Wealth

The abundance of valuable financial assets or physical possessions which can be converted into a form that can be used for transactions.

Risk Averter

An individual or entity that prefers to avoid risk, choosing options that have a more certain outcome even if it potentially means receiving lower returns.

Variance

A measure of dispersion that shows how much the values in a set differ from the mean or expected value.

Expected Utility Maximizer

A theoretical concept in economics and decision theory where an individual chooses among risky options by selecting the option with the highest expected utility.