In the Long Run, Economic Growth Can Be Expected to Lead

question 118

Multiple Choice

In the long run, economic growth can be expected to lead to
I. increases in consumption.
II. increases in the capital stock.
III. increases in the savings rate.
IV. outward shifts in the production possibilities curve.

• A) I, II, III, and IV
• B) I, II, and III only
• C) I, II, and IV only
• D) I and IV only

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Definitions:

Assignee

A person to whom rights or property is legally transferred.

Non Est Factum

Non est factum is a legal defense in contract law that asserts a signed agreement is void because the signer was mistaken about its nature and character.

Negligence

A failure to act with the care that a reasonably prudent person would exercise under the same circumstances, often leading to liability for resulting damages.

Privity of Contract

The principle that a contract confers rights and imposes liabilities only on its parties; no outsider can gain rights or be liable under it.