Suppose there is an increase in the saving rate. This increase in the saving rate must cause an increase in consumption per capita in the long run when
A) capital per worker approaches the golden-rule level of capital per worker.
B) the saving is used for education rather than physical capital.
C) the rate of saving exceeds the rate of depreciation.
D) there is no technological progress.
E) technological progress depends on human capital.
A
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Assuming farmers can plant either corn or soybeans, as U.S. farmers plant more corn to meet rising global demand
A) the opportunity cost of producing corn increases. B) the opportunity cost of producing corn decreases. C) the U.S. PPF for corn and other goods and services shifts outward. D) the United States produces at a point beyond its PPF.
A situation in which each firm selects its best action, given what its rivals are doing, is called a
A) Nash equilibrium. B) Cooperative equilibrium. C) Stackelberg equilibrium. D) zero sum game.