If a Country Increases Its Saving Rate,which of the Following

question 40

Multiple Choice

If a country increases its saving rate,which of the following permanently grow at a higher rate?

• A)productivity and real GDP per person
• B)productivity but not real GDP per person
• C)real GDP per person but not productivity
• D)neither real GDP per person nor productivity

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Definitions:

Price Elasticity Of Demand

A measure of how much the quantity demanded of a good responds to a change in its price, indicating its sensitivity.

Marginal Cost

The additional cost incurred from producing one more unit of a good or service.

Profit-Maximizing Seller

An economic agent whose primary objective is to achieve the highest possible profit from their sales.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, used to evaluate the trade-offs in resource allocation.