The Per Capita Output of an Economy Is Likely to Increase

question 37

Multiple Choice

The per capita output of an economy is likely to increase if:

• A)the number of workers in the economy grows faster than its population.
• B)the population of the country grows faster than its labor force.
• C)the government increases the tax rates.
• D)the government controls the number of illegal immigrant workers in the economy.
• E)the government manages the foreign investment in the economy.

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Definitions:

Stock Correlation

A statistical measure that describes how the movements of two stocks are related to each other.

Risky Assets

Assets that carry a significant degree of risk of loss, often associated with higher potential returns as compensation for the risk taken.

Market Risk Premium

The extra return over the risk-free rate that investors require to compensate them for the risk of investing in the stock market.

Risky Investment

An investment that carries a high level of risk of loss, along with the potential for significant returns.