Suppose there are two countries that are identical with the following exception. The saving rate in country A is greater than the saving rate in country B. Given this information, we know that in the long run
A) the capital-labor ratio (K/N) will be greater in B than in A.
B) the capital-labor ratio (K/N) will be greater in A than in B.
C) the capital-labor ratio (K/N) will be the same in the two countries.
D) economic growth will be higher in A than in B.
B
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If Italy can produce grapes at a lower opportunity cost than any other nation, Italy is said to have a(n) ________ in the production of grapes
A) comparative disadvantage B) autarky C) comparative advantage D) absolute advantage
What is the law of diminishing returns? Give a descriptive example
Please provide the best answer for the statement.
A price ceiling is
A. the lowest price a buyer can pay for a good without having to report the purchase to the government. B. a legal maximum price that can be charged for a particular good or service. C. the lowest price a seller can charge for a good without losing all her customers. D. a legal minimum price that can be charged for a particular good or service.
One criticism of the corporate income tax is that
A) it is too regressive. B) it is too flat. C) it is so complex to administer that corporate income taxes are rarely collected by the Internal Revenue Service. D) a portion of the corporations' tax burden is passed on to consumers via higher prices for goods and services and to workers via lower wages.