Some Economists Argue That the Apparent Slowdown in Economic Growth

question 135

Multiple Choice

Some economists argue that the apparent slowdown in economic growth in the United States during the mid-1970s may not really have reduced the standard of living because

• A)spending on new government regulations such as the Clean Air Act increased output dramatically without increasing the standard of living of Americans.
• B)significant improvements in the quality of services occurred,although the quantity of these services did not increase much during this time.
• C)changes in well-being are accurately reflected in statistics measuring economic growth.
• D)higher production costs from higher oil prices raised production and transportation costs and reduced output.

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Definitions:

Psychosocial Development

A theory proposed by Erik Erikson that personality development occurs through the resolution of conflicts between personal competencies and societal expectations across one's lifespan.

Erikson's Stages

A theory of psychosocial development proposing that individuals go through eight stages over their lifespan, each characterized by a specific conflict that contributes to personality development.

Crystallized Intelligence

The ability to use learned knowledge and experience, which tends to increase with age, contrasting with fluid intelligence.

Fluid Intelligence

The ability to think abstractly, reason quickly, and solve problems in novel situations, independent of acquired knowledge.