LOS b: Distinguish among saving and investment in new capital, investment in human capital, and investments in new technologies and the way each contributes to economic growth

1.Technological progress is most extensively applied to which of the following?

A)   The developments in human capital.

B)   The creation of investment opportunities and savings incentives.

C)   The creation of scientific knowledge.

D)   Improvements in the productivity of physical capital.

2.Which of the following is least likely to be considered necessary to sustain long-term economic growth?

A)   Discovery of new technologies.

B)   Savings and investment in new capital.

C)   Positive population growth.

D)   Investment in human capital.

答案和详解如下：

LOS b: Distinguish among saving and investment in new capital, investment in human capital, and investments in new technologies and the way each contributes to economic growth

1.Technological progress is most extensively applied to which of the following?

A)   The developments in human capital.

B)   The creation of investment opportunities and savings incentives.

C)   The creation of scientific knowledge.

D)   Improvements in the productivity of physical capital.

The correct answer was D)

While the most all-encompassing and powerful technologies are the development of human capital (written and spoken language, science, and mathematics) most technological progress involves improvements in the productivity of physical capital.

2.Which of the following is least likely to be considered necessary to sustain long-term economic growth?

A)   Discovery of new technologies.

B)   Savings and investment in new capital.

C)   Positive population growth.

D)   Investment in human capital.

The correct answer was C)

For economic growth to continue over the long term, societies must have incentives that encourage the pursuit of savings and investment in new capital, investment in human capital, and discovery of new technologies.