Suppose the saving rate is initially greater than the golden rule saving rate. We know with certainty that a reduction in the saving rate will cause
A) a reduction in the rate of growth in the long run.
B) a reduction in output per worker.
C) a reduction in consumption per worker.
D) all of the above
E) none of the above
B
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Consider a hypothetical economy, whose GDP was $10,000 . consumption equaled $9,800, investment equaled $125, goods exported equaled $255, and goods imported equaled $500, in 2010 . Calculate the government spending in this economy during the year
a. $120 b. $380 c. $245 d. $200 e. $320
What is the most probable reason why garbage men have higher wages than nurses?
a. marketplace discrimination b. active unionization in the garbage collection field c. higher demand for garbage men than nurses d. the nonmonetary attractiveness of garbage collection causing fewer people to want to be garbage men
The Federal Reserve is a privately operated commercial bank
a. True b. False Indicate whether the statement is true or false
Choosing to study for an exam until the extra benefit (e.g., improved score) equals the extra cost (e.g., the value of foregone activities) is:
A. an application of the Cost-Benefit Principle. B. not rational because it ignores the importance of total benefits and total costs. C. not an economic choice. D. an application of the Scarcity Principle.