(Consider This) Governments' main economic concern about low birthrates is that:
A. in a few decades there will not be enough working-age adults to support pension
responsibilities to retirees.
B. the smaller population makes the economy more vulnerable to foreign takeover.
C. a declining population will reduce worker productivity.
D. smaller populations are more susceptible to epidemics.
Answer: A
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The main result of the monetarist model is that
A) the economy is slow to adjust to sticky wages and prices. B) workers and firms have rational expectations. C) the quantity of money should be increased at a constant rate. D) productivity shocks explain fluctuations in real GDP.
Economists object to monopoly because
a. monopoly profits go to the rich. b. monopolies overproduce to maximize profits. c. monopolies are usually polluters. d. monopolists keep output below efficient levels.
If the U.S. imposed import quotas on cotton, then which of the following would rise?
a. the U.S. real exchange rate and U.S. net exports b. the U.S. real exchange rate but not U.S. net exports c. U.S. net exports but not the U.S. real exchange rate d. neither the U.S. real exchange rate nor U.S. net exports
Which of the following items would be least prudent to purchase on credit
A) a college education B) a vacation C) a house D) an automobile