Identify each of the following acts as representing either saving or investment
a. Fred uses some of his income to buy government bonds.
b. Julie takes some of her income and buys mutual funds.
c. Alex purchases a new truck for his delivery business using borrowed funds.
d. Elaine uses some of her income to buy stock in a major corporation.
e. Henrietta hires a builder to construct a new building for her bicycle shop.
a. Fred is saving.
b. Julie is saving.
c. Alex is investing.
d. Elaine is saving.
e. Henrietta is investing.
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The common pool problem
a. occurs whenever goods are not rivals in consumption b. is an example of adverse selection c. arises whenever property rights are well defined d. is usually caused by government intervention into private markets e. is one in which resources to which access is unrestricted will tend to be overused
Economic development around the globe will be affected by how society nurtures incentives to create new
a. ideas b. inventions c. only ideas and inventions d. only ideas and artistic creations e. ideas, inventions, and artistic creations