Whenever a society forgoes current consumption to invest in capital goods
A) it will have less to consume next year.
B) it will be easier for that society to consume less in the future because people will become accustomed to less.
C) that society can consume more in the future.
D) it will be forced to produce fewer capital goods in the future.
Answer: C
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Which of the following statements best summarizes the essence of public choice analysis? a. Public choice analysis applies economic principles to political science issues
b. Public choice analysis applies political science principles to traditionally economic issues. c. Public choice analysis assumes that government leaders are primarily motivated by what is best for the community, unlike private interest groups. d. none of the above
Consumer spending accounts for about 70 percent of GDP
a. True b. False Indicate whether the statement is true or false
Government can raise GDP by $1,000 billion by:
a. raising government purchases b. reducing taxes c. increasing transfer payments d. All of the above.
Which of the following is true?
a. When economies of scale are important in an industry, the domestic market of a small country may not be large enough to support cost-efficient firms. b. In small countries, firms in industries where economies of scale are important will tend to export little, if any, of their output. c. The size of the trade sector (exports plus imports) as a share of GDP will generally be larger in more populous countries than in smaller less-populated countries. d. Countries with higher trade barriers have higher growth rates.