In the United States it is clear that if a dollar were diverted from present consumption to present investment, the return on that investment would be ________ to reward the deferral of consumption, meaning that overall economic welfare would rise
with ________ in national saving. A) insufficient, an increase
B) insufficient, a decrease
C) more than sufficient, an increase
D) more than sufficient, a decrease
C
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All else equal, as the capital stock increases, the marginal product of capital will
A) increase at an increasing rate. B) increase at a decreasing rate. C) decrease at an increasing rate. D) decrease at a decreasing rate.
The rising price of oil has made it feasible to extract oil out of oily sand in Canada. Concerning the oil market, this is an example of
A) a higher price elasticity of supply in the long run. B) a higher price elasticity of supply in the short run. C) a higher price elasticity of demand in the short run. D) an inelastic long-run supply of oil.
Someone who committed the association-is-causation fallacy might conclude that
a. event B, which follows event A, was caused by the event A b. event B, which follows event A, was not necessarily caused by event A c. the simplest model is the best predictor d. what is true for the individual is also true for the group e. what is true for the individual is not necessarily true for the group
In economics, the term investment refers to:
a. the cost of employing human capital. b. expenditure on expense accounts of employees. c. firms' expenditure on salaries and rent. d. business spending for acquiring capital goods. e. the expenses on the purchase of stocks of a corporation.