For a country to acquire more physical capital it:
A. must forgo current consumption.
B. faces the investment trade-off.
C. must pay for the investment by reducing current consumption.
D. All of these are true.
D. All of these are true.
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Your textbook argues that the phrase "the distribution of income" is misleading because
A) income is not created in a market economy, only wealth is. B) it suggests that income is not earned in process of its creation and can simply be parceled out any which way policymakers wish. C) income in the form of wages and salaries can be negative, and therefore cannot be distributed. D) it is only related to ethical rather than economic considerations.
The top 5 percent of health care users in the United States account for
A) 30 percent of all health costs. B) over 50 percent of all health costs. C) over 75 percent of all health costs. D) almost 90 percent of all health costs.
As the housing bubble collapsed, as more foreclosures occurred, and the supply of homes for sale:
A. increased, it further decreased home values, which led to more foreclosures. B. decreased, as homeowners refused to sell when they owed more than the market value. C. decreased, as homeowners no longer wanted to sell their homes when prices were low. D. increased, the price of homes fell, and so the demand for homes increased.
State the law of diminishing returns. How do diminishing returns differ from diseconomies of scale? Be sure to define diseconomies of scale in your answer
What will be an ideal response?