How can an increase in human capital lead to an increase in GDP? Why might it not lead to an increase in GDP?
What will be an ideal response?
Labor is more productive as human capital increases. Population growth can be expected to eventually fall as human capital increases. It might not lead to an increase in GDP if there is not sufficient job growth, or increased education is not directed at productive activities.
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A fractional reserve banking system is one in which banks hold less than 100 percent of ________ as reserves
A) shareholder equity B) securities C) deposits D) loans
Mutually beneficial trade is impossible when different persons have different preferences about goods and services.
Answer the following statement true (T) or false (F)
What is the relationship between savings, capital formation, and consumption?
Additional firms often do not try to compete with a natural monopoly because
a. they fear retaliation in the form of pricing wars from the natural monopolist. b. they are unsure of the size of the market in general. c. they know they cannot achieve the same low costs that the natural monopolist enjoys. d. the natural monopoly does not make a large profit.