Savings is an important factor influencing economic growth because saving
A) can finance new investment and capital formation.
B) helps the economy maintain the current level of total expenditures when a recession begins.
C) provides a fund for wages needed from any unexpected population growth.
D) All of the above answers are correct.
A
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In the United States, income is more equally distributed than measured wealth
Indicate whether the statement is true or false
A cost curve drawn with years on the horizontal axis and costs per unit on the vertical axis would be a(n)
a. analytical cost curve. b. long-run cost curve. c. historical cost curve. d. theoretical cost curve.
If production of an item results in negative external costs, then
A) the market price is below the socially preferred price that reflects the external costs. B) the market price is above the socially preferred price that reflects the external costs. C) market forces will always correct the problem. D) the market quantity is too low from society's point of view.
?Hair Pins /hourBandanas /hourNigel410Mia93
Consider two individuals, Nigel and Mia, who produce hair pins and bandanas. Nigel's and Mia's hourly productivity are shown in Table 3.3. Nigel's opportunity cost of producing one bandana is:
A. 1/4 of a hair pin. B. 2/5 of a hair pin. C. 2.5 hair pins. D. 4 hair pins.