If a country increases its saving rate, which of the following permanently grow at a higher rate?
a. productivity and real GDP per person
b. productivity but not real GDP per person
c. real GDP per person but not productivity
d. neither real GDP per person nor productivity
d
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The natural resources used in production are made available in the
A) government market. B) factor market. C) product market. D) goods and services market.
Using a Cobb-Douglas production function, Y/N = (K/N)b, the marginal product of capital is
A) b(K/N)b-1. B) b(K/N). C) (K/N)b-1. D) (K/Y)b.
Income assistance benefits are
a. taxed at a high marginal rate, in the sense that benefits sharply decrease as earned income increases b. taxed at a 20 percent marginal rate c. taxed at a high marginal rate in order to provide work incentives d. unaffected by increases in earned income e. positively related to income from other sources
Deflation
a. increases incomes and enhances the ability of debtors to pay off their debts. b. increases incomes and reduces the ability of debtors to pay off their debts. c. decreases incomes and enhances the ability of debtors to pay off their debts. d. decreases incomes and reduces the ability of debtors to pay off their debts.