Explain how the standard of living of the average person in an economy can increase?
What will be an ideal response?
The only way for the standard of living of an average person in an economy can increase is if production increases faster than population growth. This is possible only through increases in labor productivity.
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Which of the following provides the best explanation of why low-income countries general remain poof?
What will be an ideal response?
One reason for the huge investment by China into the US economy is the:
A. Chinese investors view that US investments are less stable. B. low savings rate in China which makes the cost of borrowing very low in China. C. the desire of China to 'sink' the US economy. D. large savings rate in China that encourage capital outflow.
A perfectly competitive firm is currently producing at a point where price is $10 and both marginal cost and average variable cost are $7. To maximize profit or minimize loss in the short run, this firm should:
a. ?shut down. b. ?increase its output. c. ?raise its price. d. ?reduce its output. e. ?lower its price.
Who sets the rules for entitlements when spending is authorized under this category?
A. the President B. the agency involved C. the Congress when it appropriates the spending D. each individual state