A wealthy economy is likely to choose to produce all consumption goods and no capital goods
Indicate whether the statement is true or false
F
You might also like to view...
Suppose that more people want Orange Bowl tickets than the number of tickets available. Which of the following statements is correct?
A. If the box office price were raised, the excess demand for Orange Bowl tickets would decrease. B. The box office price is higher than the equilibrium price for Orange Bowl tickets. C. There is a shortage of Orange Bowl tickets at the box office price. D. both a and c E. all of the above
The Ajax Manufacturing Company is selling in a purely competitive market. Its output is 100 units, which sell at $4 each. At this level of output total cost is $600, total fixed cost is $100, and marginal cost is $4. The firm should:
A. reduce output to about 80 units. B. expand its production. C. continue to produce 100 units. D. produce zero units of output.
If government spending is increased by $300, taxes are reduced by $300, and the MPS is 0.5, equilibrium output will change by
A. $0. B. $300. C. $900. D. an amount that cannot be determined from this information.
The rate at which a consumer is willing to give up consumption in one period for additional consumption in another is known as ________
A) the marginal propensity to save B) the marginal propensity to consume C) the marginal rate of substitution D) the average propensity to consume