Explanations for the high saving rate in China consistent with the life-cycle reason for saving include:
A. lifetime employment.
B. low unemployment rates in Japan.
C. the desire to leave resources to children who provide support and attention to parents in their old age.
D. China's social safety net provides most people little in the way of retirement income.
Answer: D
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In the market for a normal good, what is the ultimate market reaction of suppliers to an increase in the incomes of consumers?
A) Suppliers do not react, because a change in income shifts the demand curve, not the supply curve. B) The supply curve shifts to the right. C) The supply curve shifts to the left. D) Quantity supplied increases as the equilibrium moves along the supply curve due to a rise in the demand.
Which of the following will cause an increase in the demand for the Venezuelan currency, the Venezuelan bolivar?
A) real interest rates in Venezuela fall B) U.S. residents change preferences in favor of goods produced in the United States C) real interest rates in the United States increase D) none of the above
By the 20th century, the largest sector of the U.S. economy in terms of commodity output value was
a. agriculture. b. manufacturing. c. mining. d. construction.
Let the marginal product of capital (MPK ) be 6; the marginal product of labor (MPL) be 2; the price of labor is given by $10 . What will be the price of capital such that the isocost and the isoquant are tangent to each other?
a. $30 b. $3 c. $60 d. $6