Question

For each of the following policies, select the type of resource that is the primary focus of the policy. (i) Aid from the IMF for the education for technology workers. (ii) A piece of legislation that bans drilling for oil in Alaska. (iii) Laws mandating school attendance for children younger than 18. (iv) State tax credits for the construction of new company headquarters within the state

Answer 1

i) Human capital

ii) Natural resources

iii) Human capital

iv) Physical capital

Step-by-step explanation:

Economic growth are focused on trying to increase aggregate demand (demand side policies) or increase aggregate supply/productivity (supply side policies).

Economic growth is often driven at times by customer spending and business investment. If consumers are buying home, for example, home builders, contractors, and construction workers will experience economic growth.

Policies for economic development could involve: 1.) improved macroeconomic conditions (create stable economic climate of low inflation and positive economic growth).

2.) Free market supply-side policies - privatisation, deregulation, lower taxes, less regulation to stimulate private sector investment.

3.) Government interventionist supply side policies- increased spending on public goods' such as education, public transport and healthcare.