A less developed country can increase its capital stock by
a. raising taxes on purchases of capital goods
b. temporarily accepting unusually high unemployment rates
c. reducing government spending
d. shifting resources away from production of consumer goods and toward production of capital goods
e. providing more opportunities for individuals to spend their accumulated savings
D
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Which of the following changes aggregate supply and shifts the aggregate supply curve?
i. change in the price level ii. change in potential GDP iii. change in the money wage rate A) i only B) ii only C) iii only D) ii and iii E) i, ii, and iii
How are scarcity, choice, and opportunity cost related?
What will be an ideal response?
In the market for crude oil, everything held constant, if rate of interest of simple bank accounts or interest-bearing investments decline, then:
a. the consumption of crude oil declines in the present period. b. the extraction of crude oil will increase today. c. the price of the crude oil in the international market falls in the present period. d. greater research and developments are conducted to locate new sites of crude oil in the present period. e. the extraction of crude oil will fall in the present period.
When the value of exports exceeds the value of imports then
A. the country is running a trade deficit. B. changes in productivity will occur. C. the country is running a trade surplus. D. international trade is in balance.