Are abundant natural resources good or bad for economic growth?
The answer to this question is debatable. Abundant natural resources can help the people of a country achieve high growth rates and income levels. However, if the institutions and policies fail to protect property rights, enforce contracts even-handedly, and encourage productive behavior, even resource-rich countries fail to develop and achieve high levels of income. Further, abundant natural resources will often discourage needed institutional reforms and may generate conflict over the division of the benefits derived from the resources. Some economists have referred to this as the "resource curse." Thus, resource riches generate mixed economic outcomes.
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An analyst on a local news channel argues that the recent corporate scandals "demonstrated very clearly that self interest always contradicts social interest." Do you agree or disagree? Substantiate your answer
What will be an ideal response?
Refer to Figure 15-2. If the firm's average total cost curve is ATC1, the firm will
A) suffer a loss. B) break even. C) make a profit. D) face competition.
The supply curve reflects the
a. inverse relationship between price and quantity offered b. positive relationship between demand and supply c. negative relationship between price and quantity bought d. positive relationship between price and quantity bought e. positive relationship between price and quantity offered
To derive personal income from national income, you
a. subtract retained earnings, Social Security taxes, and transfer payments, and add in corporate business taxes b. subtract retained earnings, Social Security taxes, corporate business taxes, and add in transfer payments c. subtract retained earnings, corporate business taxes, and transfer payments, and add in Social Security taxes d. subtract corporate business taxes, Social Security taxes and transfer payments, and add in retained earnings e. subtract Social Security taxes, retained earnings, and personal taxes, and add in transfer payments