Country A has real GDP per person of 100,000 while country B has real GDP per person of 200,000 . All else constant, country A will eventually have a higher standard of living than country B if
a. the level of saving per person is 10,000 in country A and 10,000 in country B.
b. the level of saving per person is 12,000 in country A and 15,000 in country B.
c. Both of the above are correct.
d. None of the above are correct.
c
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In the economic way of thinking, the identification of wealth with material objects
A) is at the foundation of modern capitalism. B) is good economics but antithetical to religious precepts. C) is usually rejected by socialists. D) must be rejected because it makes no sense.
If a member of a cartel is the first to alert authorities to the cartel behavior, which of the following will occur to this member firm?
A) The firm will face both monetary fines and jail time. B) The firm will not face monetary fines, but its managers will face jail time. C) The firm will face monetary fines, but its managers will not face jail time. D) The firm will not be penalized.
For a perfectly competitive firm, the value of the marginal product of labor falls as more workers are hired because of the diminishing
A) output price. B) marginal physical product of labor. C) price of labor. D) marginal cost of production.
An optimizing consumer will select the consumption bundle in which the marginal rate of substitution
a. is equal to the relative price ratio of the goods. b. exceeds the marginal utility of each good by the greatest amount. c. is less than the slope of the budget constraint. d. All of the above are correct.