To increase future living standards by pursuing higher current rates of investment spending, an economy must:
A. decrease the amount of future research and development spending.
B. allow higher rates of current consumption.
C. reduce current rates of consumption spending.
D. reduce the current capital stock.
Answer: C
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Economic growth can be illustrated by: a. a movement along the production possibilities curve
b. a movement from a point on the production possibilities curve to a point inside the production possibilities curve. c. an inward shift of the production possibilities curve. d. an outward shift of the production possibilities curve.
A portion of the balance of payments in which remaining outstanding claims are financed is known as the
a. current account. b. settlement account. c. capital account. d. balance of trade.
An example of a good that is rival in consumption is:
A. an air show over the whole city. B. a floral display at a large university's graduation ceremony. C. a scientific discovery that allows florists to grow flowers to which no one is allergic. D. a Big Mac.
The economic effects of a recession are likely to have the smallest impact on the sales of which of the following businesses?
A) an automobile manufacturer B) a furniture store C) a fast-food restaurant D) a home builder