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1. Economists differ in their views of the role of the government in promoting economic growth. At the very least, the
government should
a.
lend support to the invisible hand by maintaining property rights and political stability.
b.
limit foreign investment to industries that don't already exist in the country.
c.
impose trade restrictions to protect the interests of domestic producers and consumers.
d.
subsidize key industries.
2. Economists differ in their views of the role of the government in promoting economic growth. A controversial idea is
that government should
a.
lend support to the invisible hand by maintaining property rights and political stability.
b.
lower barriers and impediments to free trade.
c.
encourage capital formation.
d.
target and subsidize specific industries important for technological progress.
3. In order to promote growth in living standards, policymakers must
a.
protect property rights.
b.
maintain political stability.
c.
encourage the accumulation of factors of production.
d.
All of the above
