An increase in the saving rate results in a higher steady state ________
A) growth rate of capital
B) growth rate of output per worker
C) level of consumption per worker
D) level of capital per worker
D
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If the autarkic and world relative prices are equal, then
a. consumers are better off with trade than without trade. b. the country has the option of supplying either good in the world market. c. no gains from trade are possible. d. the world markets are not in equilibrium.
What is a "marginally attached worker"?
What will be an ideal response?
Answer the following statements true (T) or false (F)
1. The issue is not so much whether globalization will pressure low-income countries to reduce their environmental standards, but instead whether the threat of blocking international trade can pressure these countries into adopting stronger standards. 2. Environmental protection is vital to two industries of key importance in many low-income countries—agriculture and tourism. 3. Few nations belong to both the World Trade Organization and regional trading agreements. 4. The disruption caused by international trade is fundamentally different from all the other disruptions caused by the other workings of a market economy.
Which of the following statements is true?
A) A change in sales should have more impact on current investment if it is expected to be permanent rather than temporary. B) On a percentage basis, investment is more volatile than consumption. C) In terms of dollars, investment and consumption are about equally volatile. D) all of the above E) none of the above