In the Solow growth model, an increase in the savings rate
A) raises steady state per capita output.
B) raises the growth rate in aggregate output.
C) must reduce per capita consumption.
D) must reduce the standard of living.
A
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The high pay of professional basketball players
a. is earned despite the recent drop-off in popularity of pro basketball b. reflects the increased supply of skilled basketball players c. is not justified by the quantity of their play d. is due to the decline in quality of college basketball players e. reflects the limited supply of basketball talent and the growing demand for that talent
When government policies are enacted,
a. equality can usually be enhanced without an efficiency loss, but efficiency can never be enhanced without a reduction in equality. b. efficiency can usually be enhanced without a reduction in equality, but equality can never be enhanced without an efficiency loss. c. it is always the case that either efficiency and equality are both enhanced, or efficiency and equality are both diminished. d. None of the above are correct.