Economics - Economics Section 1
66. The growth of the economy will least likely be affected by:
- Option : B
- Explanation : The total hours worked remains unchanged so the growth of the economy will not change.
67. Which of the following is the most practical approach to estimate sustainable growth rate?
- Option : B
- Explanation : Output growth is equal to the growth rate of labor force plus the growth rate of labor productivity i.e. output per worker. Unlike total factor productivity, output per worker is observable, so this is the most practical way to approach estimation of sustainable growth rate.
68. Which of the following can least likely be measured directly?
- Option : C
- Explanation : In the standard Solow growth accounting equation, the coefficient on each factor’s growth rate is its share of income.
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