Attempts to create a monopoly by having favorable laws passed are examples of rent seeking
Indicate whether the statement is true or false
TRUE
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Approximately how long will it take Ethiopia to double its real GDP per person of $100 if its growth rate of real GDP per person is 0.9 percent?
A) 63 years B) 77.7 years C) 70 years D) 109 years E) 100 years
Adjudication reduces problems created by negative externalities by
A) assigning liability to the party most able to pay (the deep pocket). B) balancing marginal social benefits against marginal social costs. C) discovering who has what rights. D) making more accurate private benefit-cost analyses. E) measuring externalities more precisely.
According to the Ricardo-Barro effect
A) the government budget has no effect on the real interest rate. B) a government budget deficit crowds out private investment. C) financing government spending with taxes has a smaller effect on private investment than financing through government borrowing. D) None of the above answers are correct.
As new firms enter a competitive price-searcher market, it can be expected that
a. market price will increase. b. the output of existing firms will increase. c. profits of existing firms will increase. d. market demand should decrease. e. profits of existing firms will decrease