A Reduction in the Saving Rate Will NOT Affect Which

question 46

Multiple Choice

A reduction in the saving rate will NOT affect which of the following variables in the long run?

• A)output per worker
• B)the growth rate of output per worker
• C)the amount of capital in the economy
• D)capital per worker
• E)none of the above

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Definitions:

Perfect Competitor

an individual firm operating in a perfect competition market structure, which cannot influence the market price and produces a standard product.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers, typically sloping downward from left to right.

Marginal Revenue

The additional revenue that is generated by selling one more unit of a product or service.

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the total quantity of output produced.