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To show two of the major determinants of the economy’s growth in the 20th century, and to examine whether the continuation of growth is threatened by the depletion of natural resources.
Suppose that per capita net national product (NNP) begins an annual decline this year by 1%. What impact, if any, is this decline likely to have upon our living standards 20 years from now?
It will substantially diminish the quality of living standards by slowing economic growth.NEXT QUESTION
Thomas Malthus believed that the world’s population would be controlled MAINLY by...
The natural limitations of finite resources. Malthus believed that other factors, such as war and disease, would also curb population; however, he believed the main factor would be the effect of limited resources on the standard of living.NEXT QUESTION
Economist David Ricardo tended to favor the concept of specialization MAINLY because he saw it as a way to...
Increase the efficient use of resources. Ricardo believed in efficiency, but did not really believe there was a way to raise the standard of living above subsistence levels because he subscribed to the theories of Malthus. Ricardo did not favor domination by any class.NEXT QUESTION
Other inputs being held constant, the curve for the marginal product of capital will tend to...
slope downward to the right.NEXT QUESTION
Current evidence suggests strongly that industrial nations with relatively high investment rates also tend to have...
higher rates of economic growth.NEXT QUESTION
Which of the following would Henry Ford probably have agreed with most strongly?
The capital-labor ratio has a major impact on efficiency.RESTART QUIZ