Increased saving today means
a. more consumption today and in the future
b. less consumption today and in the future
c. more consumption today and less in the future
d. less consumption today and more in the future
e. more income today, but the net effect of increased income on the balance between consumption and saving cannot be determined in advance
Question 2
Which of the following is not true regarding the argument for protection as a way of maintaining jobs and wage levels?
a. Wages may be only a small fraction of total production costs.
b. High wages do not necessarily imply high labor costs when productivity is taken into account.
c. U.S. workers are among the most productive in the world partly because they are well educated and trained compared to other countries.
d. U.S. workers are highly productive partly because they are provided with abundant supplies of machines and physical capital.
e. It is not possible that the U.S. wages, even when supported by high U.S. output per worker, can render U.S. products competitive with low-wage countries.
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