If an economy wants to experience economic growth, what decision must it make and carry out? Explain
People in the economy must decide to consume fewer goods and services, and to invest those resources into greater productive capacity for the future. This can be in the form of more capital stock, better training for workers, or improved technology.
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Life insurance companies are regulated by state governments because
A) they have never experienced bankruptcy. B) they have never experienced profitability. C) they have never experienced widespread failures. D) they hold only highly liquid assets.
Suppose the marginal propensity to consume is 0.8. A $20 billion increase in government spending shifts the IS curve
A) to the right by $100 billion. B) to the left by $20 billion. C) to the left by $16 billion. D) to the right by $2.5 billion.
One benefit of a negative income tax is that it would increase work incentives.
Answer the following statement true (T) or false (F)
An example of vertical foreclosure is when a firm:
A. merges with a rival firm with the intention of eliminating the rival firm's product from the market. B. merges with a rival firm with the intention of eliminating the rival firm's product from the market and that controls an essential upstream input refuses to sell to other downstream firms that need the input. C. temporarily prices below its marginal cost to close competitors out of the market. D. that controls an essential upstream input refuses to sell to other downstream firms that need the input.