How does a higher level of saving lead to higher GDP in the future?
(A) Because increased savings will divert money that would be spent on imported goods in the current year.
(B) Because more capital is available for investment, leading to higher output through capital deepening.
(C) Because a higher national savings rate encourages immigration and expands the labor force.
(D) Because the government taxes savings accounts to pay for education.
Ans: (B) Because more capital is available for investment, leading to higher output through capital deepening.
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Refer to Figure 15-4. What is the amount of the monopoly's total revenue?
A) $21,600 B) $20,400 C) $19,740 D) $7,800
The demand curve for a good is very unlikely to be perfectly vertical because
a. scarcity and limited income restrict the ability of consumers to afford goods as they become very expensive. b. as the price of a good rises to high enough levels, the incentive for other suppliers to invent new substitutes for the good increases. c. consumers generally do not care about the price of the goods they consume. d. both a and b are true.
Recall the Application about running a software programming business to answer the following question(s).If you have $10,000 to start a software development business, the interest rate is 4 percent, your cost of your computer is $5,000, and the earnings you sacrifice from working at another job are $32,000, your yearly cost of doing business would be:
A. $47,000. B. $47,400. C. $37,400. D. $37,000.
Suppose the nation of Alphonia was charged with dumping electric lawnmowers in the nation of Omegalon. The result of Omegalon imposing anti-dumping tariffs on electric lawnmowers manufactured in Alphonia would most likely be:
A. an increased market share for Alphonian-manufactured electric lawnmowers in Omegalon. B. higher selling prices on electric lawnmowers in Omegalon. C. lower selling prices on electric lawnmowers in Alphonia. D. increased exports of electric lawnmowers from Alphonia.