A small reduction in a country's growth rate is a concern to policy makers because
A) a small change can have large effects on per capita GDP over time.
B) a reduction usually leads to future reductions until finally the economy stagnates.
C) policy makers focus too much on economic growth and not enough on increasing savings rates.
D) the larger GDP is the better the economic welfare will be in the future.
A
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Answer the following statement(s) true (T) or false (F)
1. A drafted army can be unnecessarily costly in two ways: it can be the wrong size or it can consist of the wrong people. 2. A draft is better for society because it is less costly than a volunteer army. 3. The Fabian argument that confiscation of rents would not lower social welfare overlooks the costs of resource misallocation. 4. The use of signals in an economy is both individually rational and socially efficient. 5. Because of adverse selection, no good used cars ever change hands.
Refer to Figure 11-4. Using the per-worker production function in the figure above, the largest changes in an economy's standard of living would be achieved by a movement from
A) D to B to E. B) C to B to A. C) A to B to C. D) E to B to D.
Which of the following is an example of a commodity money?
A) gold coins B) dollar bills C) British pound notes D) Japanese yen notes
To determine whether a market is perfectly competitive, economists examine the
A. number of firms in the market. B. similarities among the products of the different firms in the market. C. ease of entry and exit by firms in the market. D. All of the responses are correct.