Countries that have high rates of savings also have
A) high rates of investment.
B) low rates of investment.
C) stock market bubbles.
D) low rates of growth.
E) no international trade.
A
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The optimal provision of a public good occurs when the sum of the marginal rate of substitution for all members of society equals 1, the marginal rate of transformation
What is the relationship between the marginal rates of substitution in the competitive market? Use this relationship to explain why too few public goods are provided in the competitive market.
In the problem of double marginalization, the resulting price is ______than if the manufacturer and the retailer were to merge
a. Higher b. Lower c. The same d. None of the above
Automatic stabilizers
What will be an ideal response?
Which of the following is a payroll tax?
A. The federal income tax. B. The corporate income tax. C. A sales tax. D. The Social Security tax.