For this question, assume that the saving rate increases. We know that this increase in the saving rate will cause which of the following?
A) a temporary increase in the level of output per capita
B) no permanent change in the level of output per capita
C) a temporary increase in the rate of growth of output per capita
D) a permanently higher rate of growth of output per capita
E) none of the above
C
You might also like to view...
Property rights
A) are essentially arbitrary. Therefore, rearranging them will have few effects. B) do not really exist except in a capitalist society. C) are a major part of the "rules of the game", which govern economic activity. D) prevent people from cooperating in the most effective way. E) are different from human rights.
A patient has a medical condition, but he doesn't know what it is. The physician he sees diagnoses his illness correctly. What term applies to this situation?
a. Principle-agent problem. b. Rational ignorance. c. Externalities. d. Asymmetric information e. The substitution effect.
If a firm is wondering whether or not it should "buy or make,"
A) it is exploring its horizontal boundaries. B) it is exploring its vertical boundaries. C) it is exploring the boundaries of its network. D) it is considering a "winner-take-all" event.
A fruit retailer buys 50 pounds of apples from the wholesale market every day. The retailer has observed that 20% of the apples bought each time are not of good quality
Because it is not possible for the retailer to check each apple before buying, how much should he pay for each pound if he values good apples for $1.40 per pound while he has a value of zero for bad quality apples? A) $1.12 per pound B) $1.20 per pound C) $1.40 per pound D) $2 per pound