Question

True or False: If false, explain why.

a. Technological advance, which to date has played a relatively small role in U.S. economic growth, is destined to play a more important role in the future.

b. Many public capital goods are complementary to private capital goods.

c. immigration has slowed economic growth in the United States.

Short answer

1. False.
2. True.
3. False.

Step-by-step solution

Step 1. Reason behind option (a)

The statement says that technological advancement has played a relatively small role in U.S. economic growth, which is not correct.Technological advancement has played the biggest role in U.S. economic growth. It contributes around 40 percent to growth productivity which is highest among other factors.

Therefore, the given statement is false.

Reason behind option (b)

The statement is correct because capital goods such as ports, highways, electricity supply complement the private capital goods such as ships, private vehicles, and factories. These public capital goods are needed to support the use of private capital goods. For example, roads are needed for the transportation of goods.

Hence, the given statement is true.

Step 3. Reason behind option (c)

The statement that says that immigration slows down economic growth is incorrect. Immigration brings labor input to the economy, which is an important factor for production. Immigration increases the workforce as well as customers in the economy. The increase in the population because of immigration will increase the size of the real GDP.

Thus, the given statement is false.