An Increase in Real Per Capita Income Will Generally Lead

question 88

Multiple Choice

An increase in real per capita income will generally lead to

• A) a cleaner environment and more time for recreation.
• B) a reduction in life expectancy because working conditions are less desirable.
• C) an increase in the number of hours worked by residents.
• D) an increase in real GDP that is less rapid than the increase in population

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Definitions:

Goods

Tangible items that are produced or manufactured and can be bought, sold, or traded.

Services

Intangible products that are produced and consumed at the same time, offering value without transferring ownership.

Free Trade

International trade left to its natural course without tariffs, quotas, or other restrictions.

NAFTA

The North American Free Trade Agreement, a treaty between Canada, Mexico, and the United States that removed tariff barriers between the nations.