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) Scrooge's miserly saving helped contribute to the production of investment goods rather than consumption goods.
B) Scrooge was happiest when he was saving money, and happiness is the key to economic growth.
C) saving has to be greater than consumption for the economy to grow.
D) Scrooge's consumption habits were more detrimental to the environment than were his earlier saving habits.
Answer: A
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A) zero-sum game B) prisoners' dilemma C) extensive-form game D) payoff matrix
A perfectly inelastic demand curve is
A) a horizontal straight line. B) a vertical straight line. C) a downward sloping straight line that intersects the horizontal axis at the origin. D) an upward sloping straight line that crosses the vertical axis.
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a. more because nominal income falls b. less because nominal income rises c. more because the real value of their wealth increases d. less because real income decreases e. less because the real value of their wealth decreases
When a private transaction imposes costs on others not directly involved in the transaction, _____
a. a negative externality exists b. a positive externality exists c. the good involved in the transaction is a club good d. the tragedy of commons problem arises e. a free rider problem arises