To increase future living standards by pursuing higher current rates of investment spending, an economy must:
A. reduce the current capital stock.
B. allow higher rates of current consumption.
C. reduce current rates of consumption spending.
D. decrease the amount of future research and development spending.
Answer: C
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One reason the demand curve slopes ________ is that as prices fall ________.
A. upward; fewer people find that the price is now less than their reservation price. B. downward; fewer people find that the price is now less than their reservation price. C. downward; more people find that the price is now less than their reservation price. D. upward; more people find that the price is now less than their reservation price.
Where does the World Bank get its funds?
A) from selling internal reports to the public B) from tariffs collected on goods traded internationally C) from governments of the wealthiest nations and from private financial markets D) from seizing dead capital in developing nations and selling it at auction
National defense and coastal lighthouses are examples of
a. public goods. b. private goods. c. high marginal cost goods. d. depletable goods.
Assume Joseph spends his entire income on X and Y, and his indifference curves have the usual convex shape. If Joseph maximizes his utility, then
A. there are other bundles that are preferred at the current price ratio. B. he spends his entire available income. C. the slope of his indifference curve is greater than the slope of his budget line. D. the slope of his indifference curve is smaller than the slope of his budget line.