Hu Tells Leaders China Growth Will Help World Economy Chinese ...

[itsmyluck]

Hu Tells Leaders China Growth Will Help World Economy
 
  Chinese President Hu Jintao told world leaders that his country has taken an active part in the international cooperation to deal with the financial crisis'' by providing a 586 billion economic stimulus, focused on building low-rent housing, roads, railways and airports. The package also allows tax deductions for fixed assets such as machinery to stimulate investment. Farmers will also benefit from more subsidies.
  Hu stated that China is in itself an important contribution to international financial stability and world economic growth.''
   www.bloomberg.com 11/15/2008
  China wants to increase investment because this change will
  A) increase the growth in physical capital and speed up economic growth.
  B) increase human capital.
  C) cause an increase in the supply of labor.
  D) not cause the real wage rate to increase so employment will increase.

Question 2

In the above figure, the equilibrium price of a paperback book is 6 per book and the equilibrium quantity is 3 million books. The National Literature Board convinces the government to impose a price ceiling of 3 per book.
 
  At this price, the quantity of books supplied to the market will be A) 3 million a month and will equal the quantity demanded.
  B) less than 3 million a month and will exceed the quantity demanded.
  C) less than 3 million a month and will be less than the quantity demanded.
  D) more than 3 million a month and will exceed the quantity demanded.

[Meganchabluk]

Answer to Question 1

A

Answer to Question 2

C

[itsmyluck]

Excellent

[brbarasa]

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