Briefly explain how the miserliness of Ebenezer Scrooge might actually be beneficial for economic growth
What will be an ideal response?
Ebenezer Scrooge is known for his unwillingness to spend money. Refusing to use his money for consumption spending, Scrooge saves his money instead. This saving then becomes available for firms to borrow to finance the building of new factories or research and development. Since growth in the capital stock and technological advance are keys to economic growth, the "stingy" Scrooge may actually promote economic growth.
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If the actual capital-labor ratio is above the steady-state capital labor ratio, growth from convergence will be ________, and the economy will grow ________ than it will along a balanced growth path
A) negative; slower B) negative; faster C) positive; slower D) positive; faster
The optimal patent length is equal to 20 years
Indicate whether the statement is true or false
A major theme in economics is:
a. People can increase resources by limiting their economic wants b. People have limited economic wants and limited resources c. People have unlimited economic wants, but limited resources d. Unlimited resources and unlimited economic wants
Which of the following is an example of a scarce good?
What will be an ideal response?