The investment function is represented by
A. an inverse relationship between the interest rate and the value of planned investment.
B. the inverse relationship between planned investment and unplanned investment.
C. the direct relationship between planned investment and real GDP (gross domestic product).
D. the direct relationship between the interest rate and the value of planned investment.
Answer: A
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Productivity growth rates are usually higher in rich countries than in poor countries
a. True b. False Indicate whether the statement is true or false
Let's assume Ben can produce 3 units of a material good (M) or 3 units of a spiritual good (S) in a day, while Cal can produce 1 M or 2 Ss in a day. Which statement below is true?
A) Ben can produce spiritual goods more efficiently than Cal.
B) Cal can produce material goods more efficiently than Ben.
C) Ben can produce material goods more efficiently than Cal.
D) Ben can produce both material and spiritual goods more efficiently than Cal.