If a nation is going to achieve its full potential, it must have
A) a low rate of savings and a high rate of current consumption.
B) a mechanism to attract savings and channel them into productive investment projects.
C) low real interest rates.
D) a central planning agency to allocate investment funds.
B) a mechanism to attract savings and channel them into productive investment projects.
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Any firm, competitive or not, desiring to maximize profits, will choose its quantity according to the rule, produce that quantity at which
a. marginal revenue = price. b. marginal revenue = marginal cost. c. average variable cost is at its minimum. d. marginal cost is at its minimum.
The unexpected consequence of the paradox of thrift is because people try to save more
a. saving increases b. national income increases c. consumption increases d. national income falls e. investment increases
Which of the following is not an example of the opportunity cost of going to school?
a. The money a student could have earned by working if he had not gone to college. b. The nap a student could have enjoyed if he had not attended class. c. The party a student could have enjoyed if he had not stayed in to study for his exam. d. The money a student spends on rent for his apartment while attending school.
If the government imposes a price ceiling below the market equilibrium price, which of the following will result?
A. There will be a surplus of the good. B. The quantity demanded will exceed the quantity supplied. C. The quantity supplied will exceed the quantity demanded. D. The demand curve will shift to the left.