Population growth is similar to depreciation, in that ________
A) each lowers the capital-labor ratio
B) each tends to encourage saving
C) capital wears out faster when used by more workers
D) each helps to explain how economies can sustain a positive growth rate of output
A
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In a free-market system, producers will react to an increase in demand when
A. the price goes up. B. the government announces the increased demand. C. their costs increase. D. the free press publishes news of the increased demand.
Microeconomics is the branch of economics that focuses on:
a. broad issues such as growth, unemployment, inflation, and trade balance. b. the actions of particular agents within the economy, like households, workers, and business firms. c. the means of production (resources and businesses) that are owned and operated by private individuals or groups of private individuals. d. workers or firms, and whether they are well suited within the overall production process.
As of December 2010, the largest single component of M1 consists of
a. checkable deposits at banks. b. money market mutual funds. c. savings deposits. d. currency.
Which of the following is NOT a contributing factor into why the high-growth Asian economies were able to rapidly accumulate physical and human capital?
A) A stable macroeconomic environment meant low inflation. B) Loans from multilateral institutions such as the IMF, the World Bank, and regional development banks. C) The demographic transition meant that the proportion of their population working was higher. D) A rapid rise in income made greater amounts of savings possible.