Q1. Elucidate how higher saving leads to a higher standard of living. Illustrate what might deter a policymaker from trying to raise the rate of savings?
Q2. If Jason produces 250 kilograms of food per month, Explain how more liquor must he produce to achieve production efficiency?
Q3. As the owner of a lunch diner, you know that you sell on average 180 lunches daily, for an average price of $8.95. You are considering raising prices so that the average lunch will run $10.95. You know from previous industry analyses that when the average price is $10.95, restaurants sell on average 144 lunches. Assuming that you respond like the industry, should you raise your price? Why or Why not?