Holding other factors constant, a technological improvement that increases the marginal product of capital will:
A. decrease national saving.
B. decrease investment.
C. increase investment.
D. increase national saving.
Answer: C
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Assuming the United States is the "domestic" country, if the real exchange rate between the United States and France increases from 1.5 to 1.8,
A) the prices of U.S. goods and services have increased by 53% relative to France. B) the prices of U.S. goods and services have decreased by 16% relative to France. C) the prices of U.S. goods and services have increased by 20% relative to France. D) the prices of U.S. goods and services have increased by 3% relative to France.
Clustering: a. occurs when government resources are diverted toward one particular sector of the economy
b. takes place when new firms enter regions already thick with other firms in the same or similar industries. c. occurs when there is a single firm in the economy that can charge different prices for the same product. d. implies that consumers with similar tastes and preferences tend to stay in the same region. e. occurs when all the firms in the industry sell identical commodities and charge identical prices for these commodities.
A disadvantage associated with in-kind transfers to reduce poverty is that they
a. alter peoples' incentives, whereas a negative income tax does not alter peoples' incentives. b. do not allow poor families to make purchases based on their preferences. c. can only be distributed by the federal government. d. cannot restrict the group of recipients and some middle-class families may benefit from them.
The degree to which rent controls affect the market for apartments depends on
A. supply elasticity. B. the intent of the lawmakers. C. demand elasticity. D. A) and C)