Which of the following statements is true?
A) For positive growth, consumption in an economy should always be less than savings.
B) The greater the savings rate in an economy, the slower is the rate of capital accumulation.
C) The greater the consumption expenditure in an economy, the faster is capital accumulation.
D) Extremely high savings rate can be counterproductive for an economy in short term.
D
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To develop a useful picture of a firm's behavior, economists assume that the
a. firm's goal is to maximize total revenue b. firm's goal is to maximize profit c. firm's goal is to minimize marginal cost d. roles of owner, manager and worker are performed by the same individuals e. roles of owner, manager and worker are interchangeable
Eldin is a house painter. He can paint three houses per week. He is considering hiring his friend Murphy. Murphy can paint five houses per week. What is the maximum total output possible if Eldin hires Murphy?
a. 2 houses b. 3 houses c. 5 houses d. 8 houses
If an individual's total utility from consuming two goods increases, then there must be
A. a downward rotation of the individual's indifference curve. B. an inward rotation of the individual's indifference curve. C. an inward shift of the individual's indifference curve. D. an outward shift of the individual's indifference curve.
A mass transit authority charges bus fares of $1.25 during morning rush hours but only $1.00 during late morning non-rush hours. Economists explain the fare difference by the fact that the demand for bus rides during the morning rush hours is ________, but during the late morning it is ________.
A. more elastic; more inelastic B. more inelastic; more elastic C. perfectly elastic; perfectly inelastic D. unit elastic; relatively inelastic