16. T F Economists argue that easing of trade protection may lead to faster growth. 17. T F An open trading system that exposes businesses to greater competition tends to destroy efficient domestic industries. 18. T F Some economists consider industrial policy to be especially important for technological progress. 19 T F According to Joseph Schumpeter, the drive to capture monopoly profits promotes a creative destruction as old goods and livelihoods are replaced by new ones. 20. T F According to the economic growth theory of Adam Smith, the model of monopoly is the main spur to economic efficiency. 21. T F Critics of economic growth maintain that it tends to result in more pollution, more crowded cities, and excessive emphasis on materialism. 22. T F The keys to long-run economic growth are the incentives that induce individuals to work and firms to invest in production technology, within the limits imposed by demographics and the rate of technological advance. 23. T F The U.S. government has claimed that production subsidies give Airbus an unfair competitive advantage against Boeing in the commercial jetliner industry. 24. T F If the U.S. economy grows by 3 percent per year, it will take about 12 years for the economy=s output to double. Application Questions Use the table below to answer the following questions Consumption expenditures $200 billion Government purchases $60 billion Taxes $30 billion Investment $50 billion Social Security payments $20 billion Imports $20 billion Exports $10 billion How much is GDP? How much are net exports?
16. T F Economists argue that easing of trade protection may lead to faster growth. 17. T F An open trading system that exposes businesses to greater competition tends to destroy efficient domestic industries. 18. T F Some economists consider industrial policy to be especially important for technological progress. 19 T F According to Joseph Schumpeter, the drive to capture monopoly profits promotes a creative destruction as old goods and livelihoods are replaced by new ones. 20. T F According to the economic growth theory of Adam Smith, the model of monopoly is the main spur to economic efficiency. 21. T F Critics of economic growth maintain that it tends to result in more pollution, more crowded cities, and excessive emphasis on materialism. 22. T F The keys to long-run economic growth are the incentives that induce individuals to work and firms to invest in production technology, within the limits imposed by demographics and the rate of technological advance. 23. T F The U.S. government has claimed that production subsidies give Airbus an unfair competitive advantage against Boeing in the commercial jetliner industry. 24. T F If the U.S. economy grows by 3 percent per year, it will take about 12 years for the economy=s output to double. Application Questions Use the table below to answer the following questions Consumption expenditures $200 billion Government purchases $60 billion Taxes $30 billion Investment $50 billion Social Security payments $20 billion Imports $20 billion Exports $10 billion How much is GDP? How much are net exports?