Multiple Choice
Nominal gross domestic product measures the dollar value of:
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1. Introduction to Macroeconomics
Introduction to Economics
Multiple Choice
To help encourage economic growth, a country can:
A
Increase trade barriers
B
Invest in education and infrastructure
C
Reduce technological innovation
D
Limit access to financial markets
Verified step by step guidance1
Step 1: Understand the goal of the problem, which is to identify actions that encourage economic growth.
Step 2: Recall that economic growth is typically promoted by factors that increase productivity, such as investments in human capital (education) and physical capital (infrastructure).
Step 3: Analyze each option: Increasing trade barriers usually restricts economic growth by limiting market access; reducing technological innovation slows progress; limiting access to financial markets reduces investment opportunities.
Step 4: Recognize that investing in education improves the skills and productivity of the workforce, while investing in infrastructure enhances the efficiency of production and distribution.
Step 5: Conclude that the best way to encourage economic growth among the given options is to invest in education and infrastructure.
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