More Economic Growth Is Not Necessarily Better Unless the Benefits

question 9

Multiple Choice

More economic growth is not necessarily better unless the benefits of growth:

• A)exceed the costs of growth.
• B)increase average labor productivity.
• C)increase real GDP per capita.
• D)increase human capital.

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Definitions:

Expected Utility

A theory in economics that calculates the utility expected from an investment or action, considering all possible outcomes weighted by their likelihood.

Less Risk-averse Investors

Individuals who are willing to take on greater levels of investment risk in pursuit of higher returns.

Efficient Portfolios

Portfolios that offer the best possible expected return for their level of risk, based on modern portfolio theory.

Rates of Return

Rates of return measure the net gain or loss of an investment over a specified period, expressed as a percentage of the investment’s initial cost.