Which of the following is most important for long-run growth and a healthy economy?

a. a low rate of household savings and a high rate of consumption
b. a high rate of both savings and consumption
c. a high rate of government expenditures financed by borrowing
d. high tax rates and budget surpluses


B

Economics

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Countries import goods in which they have:

a. an absolute advantage. b. a comparative advantage. c. a reputation for good product quality. d. a comparative disadvantage. e. a surplus domestic production.

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About 1 out of every _____ black Americans is poor.

A. 12 B. 7 C. 4 D. 2

Economics

Demand is said to be elastic if a ______.

a. 3 percent price increase causes a 2 percent reduction of quantity demanded b. 5 percent price increase causes a 5 percent reduction of quantity demanded c. 5 percent price increase causes a 40 percent reduction of quantity demanded d. 10 percent price increase cause an 8 percent reduction of quantity demanded

Economics

Exhibit 8-7 Consumption function ? In Exhibit 8-7, the shift from C to C' could be caused by a(n):

A. increase in disposable income. B. expectation of inflation. C. increase in interest rates. D. increase in the level of saving.

Economics