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49. “As profits increase, there’s going to be a need for a capital rationing process.” The capital rationing process in the U.S. economy operates through
interest rates b) government spending c) taxes d) unemployment changes
42
50. “The survey of global labour market trends from the Geneva-based International Labour Organisation (ILO) found that Americans worked longer hours than Europeans, clocking up an average of 1,825 hours last year, compared with 1,300-1,800 hours in leading European economies. While unemployment in the EU as a whole was higher than in the US, one key indicator, the employment-to-population ratio, rose from 56.1 to 56.7 per cent between 1999 and 2002. The same measure fell from 64.3 to 62.7 per cent in the US during the same period.” From these numbers it is likely that per capita income in the U.S. is
higher than in Europe and the participation rate is lower
higher than in Europe and the participation rate is higher
lower than in Europe and the participation rate is lower
lower than in Europe and the participation rate is higher
51. “India, however, is strong in ways that are not always apparent. Although its savings rate is lower than China’s, it uses investment more efficiently to produce economic growth.” “Uses investment more efficiently” means that investment projects are chosen by
the government
the capital market
the central bank
foreigners
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