Saving is important for economic growth because
A) a higher saving rate will decrease the standard of living in the future.
B) a higher saving rate increases investment spending.
C) more saving increases consumption immediately.
D) a higher saving rate reduces investment spending.
B
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Refer to the scenario above. Which of the following will happen if Mike decides to mow his lawn by himself?
A) GDP will remain unchanged. B) Per capita income will increase. C) GDP will decrease. D) GDP will increase.
In the simple circular-flow diagram, with households and firms, GDP can be computed a. as the total payments for factors of production made by households
b. as the total expenditures by households on goods but not services, since services are intangible. c. as the total expenditures by households on goods and services. d. as the total expenditures by households on goods and services, less taxes paid.