Higher saving is associated with
a. a larger capital stock and higher productivity.
b. a larger capital stock but not higher productivity.
c. higher productivity but not a higher capital stock.
d. neither a higher capital stock nor higher productivity.
a
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Which of the following statements is true of foreign aid?
A) In practice, much of foreign aid does not get invested in new technology or education. B) Foreign aid is regressive to development. C) Foreign aid is provided only by financial institutions such as the World Bank. D) Foreign aid is directly responsible for reducing corruption in developing nations.
If a perfectly competitive market is in long-run equilibrium and there is a permanent decrease in demand, then
A) some firms will incur economic losses. B) firms are no longer maximizing profits. C) some firms must immediately exit. D) each firm must produce less output in the new long run equilibrium and earn less economic profit.
Refer to Table 4-12. The equations above describe the demand and supply for Bubba's Fried Jellybeans. What are the equilibrium price and quantity (in thousands) for Bubba's Fried Jellybeans?
A) $40 and 5 thousand B) $20 and 20 thousand C) $60 and 10 thousand D) $80 and 40 thousand
Suppose that in the economy of Springfield, USA, Homer, who has an income of $50,000, pays $10,000 in taxes. Edna, who has an income of $35,000, pays $9,000 in taxes. Based on this information, we could say that Springfield's tax system is
A) proportional. B) progressive. C) regressive. D) flat.