For this question, assume that a country experiences a permanent reduction in its saving rate. Which of the following will occur as a result of this reduction in the saving rate?
A) a permanently slower growth rate of output
B) no permanent effect on the level of output per capita
C) a permanently lower level of output per worker
D) both A and B
E) both B and C
C
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A permanent decrease in demand definitely
A) shifts a firm's average total cost curve downward. B) creates diseconomies for individual firms. C) lowers the market price. D) decreases the number of firms in the industry. E) shifts a firm's average total cost curve upward.
Which of the following statements is NOT true regarding DeBeers' rise to monopoly power in the diamond market?
a. DeBeers produces about 40 percent of the world's raw diamonds and controls another 30 percent. b. DeBeers achieved dominance in this market by gaining control of South Africa's Kimberley "pipe," the world's largest source in the late nineteenth century. c. DeBeers carefully limited the amount of diamonds it released into the market. d. DeBeers did not worry about diamonds being discovered elsewhere because it already had full control of the industry in South Africa.