Economist Steve Landsburg Has Pointed Out That Ebenezer Scrooge's Change

question 111

Multiple Choice

Economist Steve Landsburg has pointed out that Ebenezer Scrooge's change in behavior from miser to spender might actually be detrimental to the economy because

• A)Scrooge's miserly saving helped contribute to the production of investment goods rather than consumption goods.
• B)Scrooge was happiest when he was saving money,and happiness is the key to economic growth.
• C)saving has to be greater than consumption for the economy to grow.
• D)Scrooge's consumption habits were more detrimental to the environment than were his earlier saving habits.

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Definitions:

Book Value

The net value of a company's assets minus its liabilities, as recorded on the balance sheet.

Incremental Impact

Refers to the additional effects or outcomes resulting from a specific action or decision in comparison to doing nothing or choosing an alternative.

Production Workers

Employees engaged in the manufacturing process whose primary responsibilities involve producing goods and services.

Projected Cash Flows

Estimates of the amount of cash an investment, project, or business venture is expected to bring in over a given period.