Sia
Question
Statistics
Posted 10 months ago
The economy of Atlantis has experienced a sustained increase in real GDP per capita for many years.
Which of the following is NOT a likely reason for this increase?
Choose 1 answer:
(A) More health and sanitation programs
(B) Government spending on infrastructure projects
(c) An acceleration in the rate of technological change
(D) An accelerating depreciation rate of capital
(E) More capital per worker
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Answer from Sia
Posted 10 months ago
Solution by Steps
step 1
Identify the factors that typically contribute to an increase in real GDP per capita: improvements in health and sanitation, government spending on infrastructure, and technological advancements
step 2
Recognize that an accelerating depreciation rate of capital is not typically associated with an increase in real GDP per capita, as it implies a faster loss of capital's productive value
step 3
More capital per worker generally leads to higher productivity and thus could contribute to an increase in real GDP per capita
step 4
Health and sanitation programs can improve the quality of the labor force, and government spending on infrastructure can enhance productivity and economic efficiency
step 5
An acceleration in the rate of technological change usually leads to increased efficiency and productivity, contributing to economic growth
Answer
***D***
Key Concept
Depreciation Rate of Capital
Explanation
An accelerating depreciation rate of capital is not a likely reason for a sustained increase in real GDP per capita, as it indicates a reduction in the productive capacity of capital over time.
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