Other things the same, if a country increased its saving rate, in 40 years or so it would likely have
a. higher productivity, and a higher growth rate of real GDP.
b. higher productivity, but not a higher growth rate of real GDP.
c. the same productivity and growth of real GDP it began with.
d. None of the above is correct.
b
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In the following table, the United States has an absolute advantage in producing___________?
| COUNTRY | POTATOES | WHEAT |
| United States | 4 | 2 |
| Ireland | 3 | 1 |
Robert decides not to attend a showing of the newest Star Wars movie when the price of a ticket is $10. From this, we can conclude that seeing the movie is
A. worth less than 1,000 utils to Robert. B. worth $8 to Robert. C. was worth less than $10 worth of other goods for Robert. D. something that Robert would never do.
If a country is going to achieve a high economic freedom rating, it must
a. follow rule of law principles and create a stable monetary environment. b. be a political democracy. c. refrain from the imposition of barriers that limit voluntary exchange. d. rely primarily on government expenditures and regulations (rather than markets) to allocate goods and resources. e. both a and c are true.
Disposable income is
A) equal to GDP minus the capital consumption allowance. B) that portion of personal income that can be used for consumption and saving. C) the sum of all payments to suppliers of the factors of production. D) equal to national income. E) another term for personal income.