A higher rate of saving should lead to
A. higher current consumption.
B. more investment, higher capital growth, and more future consumption.
C. a higher price level and reduced future consumption.
D. less growth.
Answer: B
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In 2013, the reference base period for the CPI for the nation of Wobet, a typical consumer spent $30 on potatoes and $150 on steak. Which of the following is true?
A) The quantity of steak in the basket is larger than the quantity of potatoes. B) The quantity of potatoes in the basket is larger than the quantity of steak. C) The quantity of the two goods in the basket is the same. D) We cannot say exactly how many of each good are in the basket. E) None of the above answers is correct.
A benefit of deductibles and health savings accounts is that they
A) reduce the moral hazard problem associated with third-party payers. B) increase the quality of health care. C) reduce the use of expensive techniques for hopeless cases. D) reduce the incomes of physicians.
Economists criticize monopolies because monopolies
A. make consumers pay more for their product than the customers value the product. B. receive accounting profits. C. always price discriminate. D. restrict output and raise prices compared to a competitive situation.
If the price of an input increases, each individual firm's ________ shifts upward and the ________ shifts to the left.
A. supply curve; marginal cost curve B. demand curve; industry supply curve C. marginal revenue curve; marginal cost curve D. marginal cost curve; industry supply curve