Economist Steve Landsburg has pointed out that Ebenezer Scrooge's change in behavior from miser to spender might actually be detrimental to the economy because
A) saving has to be greater than consumption for the economy to grow.
B) Scrooge was happiest when he was saving money, and happiness is the key to economic growth.
C) Scrooge's miserly saving helped contribute to the production of investment goods rather than consumption goods.
D) Scrooge's consumption habits were more detrimental to the environment than were his earlier saving habits.
C
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Which of the following helps to explain the high savings rate in Singapore?
A) employer contributions for workers under the age of 50 B) the lack of a Social Security system like the one in the United States C) government policy D) all of the above
How do firms in monopolistic competition compete?
What will be an ideal response?
Both the CAPM and APT suggest that an asset should be priced so that it has a higher expected return
A) when it has a greater systematic risk. B) when it has a greater risk in isolation. C) when it has a lower systematic risk. D) when it has a lower systematic risk and a lower risk in isolation.
If a firm shuts down in the short run, then
a. total revenue and total cost drop to zero b. total revenue drops to zero, but the firm must still pay its fixed cost c. total revenue drops to zero, but the firm must still pay some variable cost d. total cost drops to zero, but the firm still earns some residual revenues e. neither total revenue nor total cost drops to zero