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. policy makers focus too much on economic growth and not enough on increasing savings rates.
C. a reduction usually leads to future reductions until finally the economy stagnates.
D. the larger GDP is the better the economic welfare will be in the future.
Answer: A
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Which of the following statements concerning efficiency is correct?
A. If a toll road is heavily used so that traffic movement is slowed, the price per vehicle should be reduced since the road is generating more revenue. B. Economists advocate high prices for abundant resources and low prices for scarce resources. C. If a toll road is heavily used and traffic movement is difficult, the price per vehicle should be increased to shift some traffic to less-crowded roads. D. All of these options are desirable in promoting efficient use of scarce road space.
The U.S. GDP includes
A. wine harvested and bottled in California. B. increases in the divorce rate. C. time spent studying for an exam. D. the exchange of four shirts for four skirts at a consignment store.
The demand curve faced by a pure monopolist
A) is the same as its marginal revenue curve. B) is perfectly inelastic. C) lies below the marginal revenue curve. D) is the market demand curve.
Why might a lottery winner decide to take a large lump sum payment rather than receive installments of their winnings over time? How does the concept of present value influence this decision?
What will be an ideal response?