Which of the following is most important in increasing the rate of economic growth?
A. A highly progressive tax structure.
B. High interest rates on time deposits.
C. Increasing the percentage of GDP used for investment.
D. A constant supply of funds available to investors.
E.Reducing inequality of income and wealth.
Ans: C. Increasing the percentage of GDP used for investment.
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Suppose there are four firms in a market and each of them sell differentiated products. Does it make sense for these firms to engage in a price war? Why or why not?
What will be an ideal response?
You recently took the car to the mechanic to fix its engine. The mechanic had quoted you a total price for the work of $1000, and you had decided to go ahead with the work. Nevertheless, when you go to pick up the car he tells you that in order to complete the job he needs to buy another part adding about $200 extra to the cost of fixing the car. According to the cost-benefit rule you should pay the extra money to finish the job only if the benefits of using the car are greater or equal to
A. $200. B. 0. C. $1,200. D. $1,000.
What is the likely effect in an economy when total spending is too high?
a. inflation b. tax decreases c. unemployment d. efficiency
About ____ percent of business R&D spending is for basic research
A. 1 B. 5 C. 20 D. 75