Other things being constant, countries with higher rates of saving
a. will have smaller GDPs than countries with lower rates of saving.
b. will have higher rates of investment, but slower growth.
c. will have higher rates of investment and growth.
d. will be operating at less than full employment and potential output.
C
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Which of the following is not an example of a systematic mistake that people make?
a. When asked to predict how many movie stars he can list, Ed says 200 but when put to the test he can only name 130. b. Susan watched a home improvement show in which a contractor installed a faulty deck which collapsed within 2 years of installation. She is now concerned about the safety of her own deck. c. Kate's manager asks her to work additional hours for which she will be paid her usual hourly wage. Kate weighs the value of her leisure time against the additional wages before responding to her manager. d. Bill has purchased Skillman tools for years and has recently noticed a decline in quality and durability of Skillman tools. Still, when he needs a new drill, he purchases a Skillman brand drill.
If the marginal utility of the 3rd cup of coffee is 23 and the marginal utility of the 4th cup is 15, then:
A. it is optimal for the consumer to have 4 cups of coffee. B. it is optimal for the consumer to have 3 cups of coffee. C. the price of a cup of coffee must be relatively low. D. there is evidence of diminishing marginal utility.
The table below shows how quantities of gold demanded and supplied will vary with the price in the market for gold. When the market for gold is in equilibrium, which of the following will be true?
a. The price of gold will be $200 per ounce. b. The quantity of gold exchanged per day will be 15,000 ounces. c. Both A and B. d. The price of gold will be $250. e. The price of gold will be $300.
Draw the supply curve for a good whose price elasticity of supply is equal to zero. Be sure to label both axes.
What will be an ideal response?