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:

Marginal Revenue

The increase in income from selling an additional unit of a good or service.

Perfect Competition

A market structure characterized by a large number of small firms, identical products, and freedom of entry and exit, leading to price-taking behavior.

Monopoly

A market structure characterized by a single seller, selling a unique product in the market. The seller faces no competition, as he is the sole seller of goods with no close substitute.

Average Cost

This is the total cost divided by the number of goods produced, representing the cost on average for each unit produced.