Growth Often Requires

question 51

Multiple Choice

Growth often requires:

• A) concurrent improvements in many aspects of the economy.
• B) governments to invest in one facet of the economy at a time, starting with education.
• C) governments to invest in one facet of the economy at a time, starting with basic infrastructure.
• D) governments to invest in one facet of the economy at a time, starting with leapfrog technology.

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Definitions:

Gross Investment

The total amount invested in the creation of new capital assets like buildings and machinery before accounting for depreciation.

Disposable Income

is the amount of money that households have available for spending and saving after income taxes have been accounted for.

Capital Stock

The total amount of physical goods and financial assets that are used in the production of goods and services in an economy.

Depreciation

The measure of the reduction in value of an asset over time, often due to wear and tear.