At the Core of Understanding Economic Growth Is the Idea

question 116

Multiple Choice

At the core of understanding economic growth is the idea that to raise living standards over time, an economy must:

• A) Produce and consume goods and services
• B) Save and invest
• C) Export and import
• D) Employ resources and earn incomes

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Definitions:

Tax

A mandatory financial charge or some other type of levy imposed upon a taxpayer (an individual or legal entity) by a governmental organization in order to fund government spending and various public expenditures.

Mutually-Agreeable Trade

A transaction or trade that both parties involved consent to and believe will benefit them.

Opportunity Cost

The expense incurred by not selecting the second-best option when deciding among various choices.

Willingness to Pay

The maximum amount an individual is prepared to expend on a good or service to procure it.