In LDCs, persistent poverty occurs because of preference for _______ , which results in ___________
a. large families; low levels of capital goods production
b. more consumption today; less consumption tomorrow
c. high birth rates; high death rates
d. high birth rates; low death rates
e. culture; an absence of assimilation
A
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The relation S + (T - G) = I + NX describing the equilibrium of an economy explicitly demonstrates
A) deficit spending by the government reduces either investment and/or net foreign investment. B) deficit spending reduces private saving (assuming net foreign investment remains unchanged). C) as private saving increases net foreign investment must decrease, exports decline. D) as private saving increases the deficit must decline if investment decreases.
Which of the following schematics most accurately represents economic fluctuations during a business cycle?
A) Shock -> Spending response by households and firms -> Multiplier effect -> Change in real GDP B) Shock -> Multiplier effect -> Spending response by households and firms -> Change in real GDP C) Shock -> Multiplier effect -> Change in real GDP -> Spending response by households and firms D) Shock -> Change in real GDP -> Spending response by households and firms -> Multiplier effect
Writing total output as Q, change in output as ?Q, total labor employment as L, and change in labor employment as ?L, the marginal product of labor can be written algebraically as
A) ?Q ? L. B) Q / L. C) ?L / ?Q. D) ?Q / ?L.
A consumer's utility is maximized when: a. the dollar amount spent on each good is the same
b. the marginal utility of each good purchased is the same. c. the price of each good is the same. d. None of the above are generally true.