Happyland is a country devoted to consumption. The inhabitants spend all of their income on pleasurable things and virtually none on capital investment, human or otherwise. Seriousland is frugal, spending very little on consumption and a great deal on human and physical capital. Ten years from now, which country would you prefer to inhabit?
Clearly, Happyland cannot continue in its present state. With no investment, there will be a decline in productivity, and income should decline accordingly. On the other hand, Seriousland is engaged in a course that will generate both productivity and income growth. Over the long run, Seriousland will be a much better place to live.
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The problem of the commons arises because ________ exceeds ________ when the resource is used
A) marginal social cost; marginal private cost B) marginal private benefit; marginal social benefit C) marginal private benefit; marginal private cost D) marginal private cost; marginal social cost
Foreign direct investment that takes the form of a new startup facility is called:
a. acquisition FDI. b. greenfield FDI. c. intermediary FDI. d. brownfield FDI.
Imposing tariffs in cases of dumping
A) is allowed under the WTO agreement. B) is not allowed under the WTO agreement. C) is not addressed by the WTO agreement. D) has never occurred, even though it is allowed under the WTO agreement.
Which statement is true?
A. The U.S. standard of living is higher than that of India because we have more capital. B. It is easier to attain full production than full employment. C. The United States often operates outside the production possibility frontier. D. All of the statements are true.