Suppose a closed economy had public saving of -$1 trillion and private saving of $3 trillion. What are national saving and investment for this country?
a. $2 trillion, $2 trillion
b. $2 trillion, $3 trillion
c. $3 trillion, $3 trillion
d. $4 trillion, $2 trillion
a
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The dawning of the computer age in the latter part of the 20th century created a new and massive growth spurt in the United States that illustrates what some economists describe as the
a. real growth theory b. accelerator phenomenon c. start of an innovation cycle d. interaction of the multiplier and accelerator e. Adam Smith economic growth theory
From a Keynesian perspective, the way out of recession is to
A. Get consumers to spend more on goods and services. B. Get consumers to spend less on goods and services. C. Use monetary restraint. D. Wait for the economy to fix itself.
When a positive externality is present in a market, the quantity consumed:
A. is the same as the socially optimal quantity. B. is often more than the socially optimal quantity. C. is less than the socially optimal quantity. D. is always more than the socially optimal quantity.
Renee consumes pizza and rice. An increase in her income causes her to consume fewer pizzas and more rice. The change in pizzas consumed means that
A) her total utility from consuming pizzas had been negative. B) her marginal utility from consuming pizzas had been negative. C) her marginal utility from consuming pizzas had been zero. D) pizza is an inferior good for Renee.