In the neoclassical model, an increase in the savings rate
a. causes a more than proportionate increase in the capital to labor ratio.
b. results in a less than proportionate increase in the capital to labor ratio.
c. results in a proportionate increase in the growth rate of output.
d. None of the above
B
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Answer the following statement(s) true (T) or false (F)
1. Achieving cost-effectiveness means that the present value of costs (PVC) is minimized for some pre-established benefit goal. 2. To achieve allocative efficiency, the present value of net benefits (PVNB) must be minimized. 3. In conducting a benefit-cost analysis, it is more difficult to assign a dollar value to costs than to benefits. 4. Selecting the social discount rate is among the issues debated in the use of benefit-cost analysis for public policy evaluation.
Productive efficiency is achieved when firms produce goods and services
A) at the highest profit margin. B) at the lowest cost. C) most desired by society. D) of the highest quality.
Producing where marginal revenue equals marginal cost is equivalent to producing where
A) total revenue is equal to total cost. B) total profit is maximized. C) average fixed cost is minimized. D) average total cost equals average revenue.
An increase in the number of people in the United States with health insurance could cause the cost of providing health care services to increase as the incentive for health care providers to minimize costs decreases
Indicate whether the statement is true or false