To attain a higher rate of economic growth, we need to devote___

a. a higher proportion of our production to capital goods and a lower proportion to consumer goods.
b. a higher proportion of our production to consumer goods and a lower proportion to capital goods.
c. a higher proportion of our production to both consumer goods and capital goods.
d. a lower proportion of our production to both consumer goods and capital goods.


Answer: a. a higher proportion of our production to capital goods and a lower proportion to consumer goods.

Economics

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Consider a game in which all outcomes give the players the same total payoff. Explain why every outcome in such a game will be Pareto optimal.

What will be an ideal response?

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The supply and demand for wheat is given by QS = 200 + .2A + p and QD = 500 - p, where p is the price of wheat and A is the amount of rainfall (inches per year). The effect of an incremental increase in rainfall on equilibrium will be

A) a decrease the price of wheat by 10¢. B) a decrease the price of wheat by 20¢. C) an increase in the price of wheat by 20¢. D) an increase in the price of wheat by 10¢.

Economics

Most Americans agree that

A. a certain amount of income redistribution is called for. B. absolutely no income redistribution should be carried out. C. we need completely equal distribution of income.

Economics

A monopoly has two production plants with cost functions C1 = 50 + 0.1Q12 and C2 = 30 + 0.05Q22. The demand it faces is Q = 500 ? 10P. What is the profit-maximizing price?

A. $18.75 per unit B. $31.25 per unit C. $6.25 per unit D. $12.5 per unit

Economics