Investment in both physical and human capital tends to enhance economic growth because it generally
a. increases consumption during the current period.
b. makes it possible for individuals to produce more goods and services per hour worked.
c. encourages firms to expand output by employing more low productivity workers.
d. encourages workers to unionize and thereby fight for higher wages.
B
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If inflation in the United States is higher than inflation in other countries, what will be the effect on net exports for the United States?
A) Net exports will decrease as U.S. imports decrease. B) Net exports will rise as U.S. imports decrease. C) Net exports will rise as U.S. exports increase. D) Net exports will decrease as U.S. exports decrease.
Evidence from studies of workers' choices on whether to participate in 401(k) plans suggests that the workers' behavior appears to exhibit
a. indifference. b. ignorance. c. inertia. d. indecision.
Suppose the demand function for cable TV service is given by QCTV = 15 - 0.25 × PCTV + 0.0005 × M + 0.3 × PSTV, where QCTV is the quantity of cable TV demanded (thousands of households), PCTV is the price of cable TV, M is income and PSTV is the price of satellite TV service. We can see that:
A. cable TV and satellite TV are substitutes. B. cable TV and satellite TV are complements. C. satellite TV is a normal good. D. satellite TV is an inferior good.
One key assumption of the theory of public choice is that individuals
A. are always in favor of the collective well-being of the public instead their own well-being. B. act differently between the public sector and the market sector. C. act within the political process to maximize their individual well-being. D. are always concerned about the well-being of other individuals in society.