Econ 102 Exam 1 Hw Questions With Verified Answers

Adam Smith wrote, "Little else is requisite to carry a state to the highest degree of opulence from the lowest barbarism but peace, easy taxes, and a tolerable administration of justice: all the rest being brought about by the natural course of things." True or False: Peace would promote economic growth because it provides investors the confidence that property rights will be respected and upheld in the future. {Ans: True}International data show a positive correlation between income per person and the health of the population. True or False: Individuals with lower incomes are in worse health, but this leads to greater productivity because sicker workers have higher medical expenses. {Ans: False}Healthcare costs have risen faster than overall inflation. True or False: If the elderly consume a market basket that includes more healthcare than other people, then Social Security would have an uncertain impact on their standard of living. {Ans: True}Suppose that society decided to increase consumption and reduce investment. Less investment leads to (slower/faster) economic growth in the long run. Which of the following statements are true about groups in society that would benefit from or be hurt by this change? Check all that apply. - Some