Which of the following will cause an increase in output per worker in the long run?
A) an increase in the saving rate
B) a reduction in the depreciation rate
C) an increase in the stock of human capital
D) all of the above
D
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Which of the following stands true of corruption?
a. Payment of money or gifts in order to receive a government service or benefit is a widespread practice only in less-developed countries. b. Corruption reduces growth most directly through government investment in projects with high productivity. c. Corrupt governments spend less on capital goods than governments that are less corrupt. d. The more competitive a country's markets are, the fewer the opportunities for corruption. e. Private investment is relatively higher in countries in which government expenditure is very high.
Producers have little incentive to produce a public good because
a. the social benefit is less than the private benefit. b. the social benefit is less than the social cost. c. there is a free-rider problem. d. there is a Tragedy of the Commons.
If the marginal propensity to consume (MPC) is 0.80, and if policy makers wish to increase real GDP by $200 million, then by how much would they have to change taxes?
a. -$240 million b. -$200 million c. -$180 million d. -$50 million
As the economy contracts, tax revenues:
A. fall and transfer payments rise, causing the economy to contract by less than it would in the absence of automatic stabilizers. B. fall and transfer payments fall, causing the economy to contract by more than it would in the absence of automatic stabilizers. C. rise and transfer payments rise, causing the economy to contract by more than it would in the absence of automatic stabilizers. D. rise and transfer payments fall, causing the economy to contract by less than it would in the absence of automatic stabilizers.