Recall the Application about the lack of property rights in Peru, and why clear property rights are important for economic growth in developing countries, to answer the following question(s). According to this Application, clear property rights are important for economic growth, because without a clear title to property:
A. the property cannot be used as collateral for loans.
B. people will not reside on the property.
C. no utilities will be available for the property.
D. the property has no value.
Answer: A
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Refer to the above figure. Suppose that the economy starts at AD1. If the government reduces taxes, then the economy goes to AD2, but then falls back to AD3. This is an example of
A) complete crowding-out effect. B) partial crowding-out effect. C) Ricardian equivalence. D) laissez-faire.
A new medical study reports that washing your hair everyday increases the probability of baldness. Predict the effects of this report on the market for shampoo
What will be an ideal response?
Which of the following is NOT a criticism of international institutions such as the IMF, the World Bank, or the WTO?
A) They lack openness in their decision-making process. B) They violate national sovereignty by imposing unwanted domestic policies. C) They fail to understand the effects of their policies on the vulnerable. D) Their decision making is biased in favor of underdeveloped nations and against the interests of nations already industrialized. E) They ignore potentially large adjustment costs for developing nations of implementing their policies.
Which of the following best describes total fixed cost? a. The change in total cost when one additional unit of output is produced. b. Total cost divided by the quantity of output produced
c. Total variable cost divided by the quantity of output produced. d. Total fixed cost divided by the quantity of output produced. e. Costs that do not vary as output varies.