When a national has very little GDP per person ?

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When a national has very little GDP per person ?

A. it is doomed to being relatively poor forever
B. none of these answers
C. an increase in capital will likely have little impact on output
D. it has the potential to grow relatively quickly due to the “catch-up-effect”
E. It must be a small nation.

If consumption when young and when old are both normal goods, an increase in the interest rate ?

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If consumption when young and when old are both normal goods, an increase in the interest rate ?

A. will always increase the quantity of saving
B. will always decrease the quantity of saving
C. will increase the quantity of saving if the substitution effect outweighs the income effect
D. will increase the quantity of saving if the income effect outweighs the substitution effect

Refer to Exhibit 4, Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 A pair of socks is ?

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Refer to Exhibit 4, Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 A pair of socks is ?

A. an inferior effect
B. a Geffen good
C. a normal good
D. none of these answers

Refer to Exhibit 4, Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 Suppose that the price of a pair of socks falls from €5 to €2 The substitution effect is represented by the movement from point ?

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Refer to Exhibit 4, Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 Suppose that the price of a pair of socks falls from €5 to €2 The substitution effect is represented by the movement from point ?

A. Z to point X
B. X to point X
C. X to point Z
D. Y to point X

Suppose we measure the quantity of good X on the horizontal axis and the quantity of good Y on the vertical axis If indifference curves are bowed inward, as we move from having an abundance of good X to having an abundance of good Y, the marginal rate of substitution of good Y for good X (the slope of the indifference curve) ?

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Suppose we measure the quantity of good X on the horizontal axis and the quantity of good Y on the vertical axis If indifference curves are bowed inward, as we move from having an abundance of good X to having an abundance of good Y, the marginal rate of substitution of good Y for good X (the slope of the indifference curve) ?

A. rises
B. stays the same
C. could rise or fall depending on the relative prices of the two goods.
D. falls

The consumer’s optimal purchase of any two goods is the point where ?

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The consumer’s optimal purchase of any two goods is the point where ?

A. the budget constraint crosses the indifference curve
B. the two highest indifference curves cross
C. the consumer reaches the highest indifference curve subject to remaining on the budget constraint
D. the consumer has reached the highest indifference curve