Which of the following can increase both productivity and income?
a. A decrease in the savings rate.
b. An increase in the savings rate.
c. An increase in population.
d. An increase in human capital.
Ans: b. An increase in the savings rate.
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Mergers often increase profit by
A) producing economies of scale. B) producing economies of scope. C) increasing efficiency of the firm. D) All of the above.
Suppose a hurricane causes a great deal of destruction in Florida. After the hurricane, it takes much longer than usual for the reconstruction to take place. A possible explanation for this is
A) greed by suppliers of construction materials increased. B) government prevented price gouging during the reconstruction period. C) prices of construction materials fell in the Midwest. D) environmental restrictions on lumbering in the Pacific Northwest were relaxed.