What types of government policies can increase long-run living standards?
What will be an ideal response?
If, for some reason, the national saving rate were too low, the government could increase national saving by reducing its budget deficit. Government policies could also raise the level of productivity and/or the rate of productivity growth by improving infrastructure, building human capital, and encouraging research and development.
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A game with a first-mover advantage is one in which:
A. the first player to move determines the payoffs for the rest of the game. B. the player who chooses first gets a higher payoff than those who follow. C. the player who chooses first gets to decide if a repeated game will start with cooperation from the beginning. D. None of these statements is true.
Which of the following statements is NOT correct?
A. Tariffs hurt producers and help consumers in the country imposing the tariff. B. Tariffs always decrease economic domestic well-being if imposed by a small country. C. Tariffs can increase, decrease, or leave unchanged the country's economic well-being if imposed by a large country. D. Tariffs are likely to decrease world economic well-being.
Output growth is the growth rate of output of the entire economy.
Answer the following statement true (T) or false (F)
Use the above figure. The consumer's choice changes from YB to YA. Which of the following statements is TRUE?
A. This change in the consumer's choice results from an increase in the consumer's income. B. This change in the consumer's choice results from a fall in the price of good X. C. This change in the consumer's choice results from a rise in the price of good X. D. This change in the consumer's choice results from a rise in the price of good Y.