Asked by Robert Brownlee Jr on Apr 28, 2024
Verified
Suppose that a new government is elected in Eurnesia. The new government takes steps toward improving the court system and reducing government corruption. The citizens of Eurnesia find these efforts credible and outsiders believe these changes will be effective and long lasting. These changes will probably raise
A) real GDP per person and productivity in Eurnesia.
B) real GDP per person but not productivity in Eurnesia.
C) productivity but not real GDP per person in Eurnesia.
D) neither productivity nor real GDP per person in Eurnesia.
Real GDP Per Person
A measure of the economic output of a country per individual adjusted for inflation, reflecting the average living standards.
Productivity
The measure of output per unit of input, reflecting the efficiency with which factors of production are utilized.
- Analyze the consequences of government regulations on economic proliferation, including aspects such as trade curbs and the movement of investment funds.
Verified Answer
SB
Schlindlyne BellamourMay 02, 2024
Final Answer :
A
Explanation :
Improving the court system and reducing government corruption can create a more stable and efficient business environment, which encourages investment and innovation. This can lead to increases in productivity, which in turn can raise real GDP per person by making the economy more efficient and increasing the output per individual.
Learning Objectives
- Analyze the consequences of government regulations on economic proliferation, including aspects such as trade curbs and the movement of investment funds.