Other things being equal, a higher saving rate
A. is associated with a decline in the rate of growth of the population.
B. means higher standards of living in the future.
C. leads to higher interest rates.
D. means higher standards of living today.
Answer: B
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When sellers in a perfectly competitive market attempt to maximize their own profits, they:
A) eventually end up minimizing the value of total production. B) earn positive economic profits even in the long run. C) move scarce resources to their highest possible use. D) eventually divert resources toward their lower valued uses.
Explain why imperfect information can lead to market failure. Explain how the market can solve the problem of imperfect information
Under what circumstances may it be more efficient for the government to produce information instead of relying on the market?
An improvement in technology that allows workers to process twice as many insurance forms in an hour than before will cause
a. more labor to be employed because its marginal revenue product has fallen b. an increase in insurance premiums c. fewer workers to be employed because their marginal revenue product has decreased d. more workers to be employed because their marginal revenue product has increased e. fewer workers to be employed because their marginal revenue product has increased
In the income-expenditure framework, if planned aggregate expenditures are less than real gross domestic product (GDP), _____
a. saving will increase b. the price level will increase c. inventories will increase d. inventories will decrease e. consumption will decrease