Other things the same, if a country raises its saving rate, then in the long run
a. both the level and growth rate of real GDP are unchanged.
b. the level of real GDP is higher but the growth rate of real GDP is unchanged.
c. both the level and growth rate of real GDP are higher.
d. None of the above are correct.
b
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In a fully-funded social security program
A) the young pay for the benefits of the old. B) the young are forced to save for their own retirement. C) the young have to buy bonds for the old. D) the young are forced to save for the retirement of the old.
A funded pension plan _____
a. pays current beneficiaries from the contributions of current contributors b. pays current beneficiaries from the contributions of new contributors c. maintains assets equal to the present value of future liabilities d. is functionally equivalent to a pay-as-you-go system, except for the pension plan is not compulsory
Discrimination is a reflection of some people's prejudice against certain groups in society
a. True b. False Indicate whether the statement is true or false
Suppose that for a particular firm the only variable input into the production process is labor and that output equals zero when no workers are hired. In addition, suppose that when four units of output are produced, the total cost is $175, and the average variable cost is $33.75 . What would the average fixed cost be if ten units were produced?
a. $4 b. $10 c. $40 d. $135