If seller increases the price of the good and the total revenue increases, this implies that the demand for the product is elastic.
Answer the following statement true (T) or false (F)
False
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Consider two economies with the same GDP per capita: Barylia and Lithasia. The savings rate in Barylia is 20% while the savings rate in Lithasia is 60%
a. Which of these two countries is likely to accumulate capital faster? b. The government in Barylia decides to provide incentive to its citizens to increase the savings rate further to 80% as a means to improve standards of living. Will the increase in savings and thus investment and output translate into improvements in the standard of living?
Which of the following leads to an underallocation of resources to a specific economic activity?
A) external costs B) external benefits C) marginal costs D) effluent benefits
A horizontal aggregate supply curve indicates that equilibrium real GDP is determined by aggregate supply
a. True b. False Indicate whether the statement is true or false
Which of the following will cause the aggregate supply curve to shift to the left?
A. A lower tax rate. B. Deregulation of production processes. C. A higher minimum wage. D. More job and skills training.