One Possible Way of Achieving Faster Economic Growth Is to

question 56

Multiple Choice

One possible way of achieving faster economic growth is to

• A) protect property rights and free markets.
• B) tax savings so that people spend more and firms' profits are higher.
• C) assign the government ownership of all capital.
• D) regulate the amount of international trade and limit it so that not too much occurs.
• E) limit research and development because research and development does not contribute anything to today's production.

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Definitions:

Equilibrium

A situation where the supply and demand in the market are equal, leading to stable prices.

Margarine

A spread used as a substitute for butter, made from vegetable oils or animal fats.

Producer Surplus

The difference between what producers are willing to sell a good for and the price they actually receive.

Price

The amount of money exchanged for a product or service, reflecting its value in a particular market.