A government policy that would reduce the saving rate is
A. giving tax breaks to increase the real return that savers receive.
B. switching the tax system to tax consumption instead of income.
C. increasing the government budget surplus by cutting government spending.
D. eliminating the social security system.
Answer: C
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Use the figure below to answer the following question. 
The case of substitute goods is represented by figure
A. 1. B. 2. C. 3. D. 4.
Why is it a bad business practice to assume that raising prices will lead to increases in total revenue?
What will be an ideal response?
If labor productivities were exactly proportional to wage levels internationally, this would
A) not negate the logical basis for trade in the Ricardian model. B) render the Ricardian model theoretically correct but practically useless. C) negate the logical basis for trade in the Ricardian model. D) negate the applicability of the Ricardian model if the number of products were greater than the number of trading partners. E) demonstrate the validity of the Ricardian model.
Property and casualty insurance companies are organized
A) both as stock and mutual companies. B) only as stock companies. C) only as mutual companies. D) primarily as cooperatives.