Between 1982 and 2002,U

question 49

True/False

Between 1982 and 2002,U.S.GDP per capita grew at an average rate of 5.5 percent per year.

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Definitions:

Private-Sector Provision

Goods and services provided by businesses and private individuals rather than the government, often driven by profit.

Government Provision

The supply of goods or services by the government directly or through funding public institutions.

Rational-Ignorance Effect

The decision by individuals to remain uninformed about certain matters because the perceived cost of acquiring the information exceeds the expected benefit.

Shortsightedness Effect

The misallocation of resources that results because public-sector action is biased (1) in favor of proposals yielding clearly defined current benefits in exchange for difficult-to-identify future costs and (2) against proposals with clearly identifiable current costs that yield less concrete and less obvious future benefits.