Question

True or False. Computers and increased global competition have retarded economic growth in recent decades.

Short answer

The statement is false.

Step-by-step solution

Step 1. Meaning of economic growth.

Economic growth measures the increase in real GDP from one period to another. If the current GDP is greater than the base year, then the economy is said to be experiencing economic growth, otherwise experiencing retarded economic growth.

Step 2. Reason behind the incorrectness of statement.

The invention of computers and increased global competition have created an explosion of entrepreneurship and innovation-based career opportunities. The invention of high-speed internet has made the whole world into one global market. Technology and the internet have enabled laborers to produce and supply more goods and services for this market under different start-ups. It shows that labor productivity has increased because of computers and increased global production.

Since real GDP is the product of labor input and productivity of labor, an increase in the productivity level of laborers will increase the real GDP, which shows the promotion of economic growth. Hence, the statement that computers and increased global competition have retarded economic growth is incorrect.