What is immizerizing growth? Describe how it could happen and give at least one cited historical example
What will be an ideal response?
Immizerizing growth represents economic growth that results in a reduction in national welfare. When a large country expands its productive capacity of an exported good, the biased economic growth will have effects on the country's terms of trade. This occurs because the growth causes a more than proportionate increase in the supply of exports to the world market and in the demand for imports from the world market, thereby negatively affecting the terms of trade. Immizerizing growth is probably not a common phenomenon, but it may have occurred in the Netherlands in the 1960s. Other countries besides the Netherlands have experienced this kind of problem, but since it was first reported here, the phenomenon is commonly known as the Dutch disease.
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Answer the following statement(s) true (T) or false (F)
1. In a competitive equilibrium, the industry's output is produced at the lowest possible cost because each firm has the goal of minimizing its cost. 2. Higher costs, whether fixed or variable, will cause a leftward shift in the industry's short-run supply curve. 3. The number of firms in an industry is fixed in the short run. 4. A new licensing fee would cause an immediate upward shift in an industry's short-run supply curve. 5. In a long-run competitive equilibrium, both more efficient and less efficient firms earn zero economic profit.
Which of the following is a reason for the failure of development plans?
(a) unreliable data. (b) unanticipated economic disturbances. (c) lack of political will. (d) all of the above. (e) none of the above.
After a policy of import substitution has begun, a developing country finds that employment has not risen significantly and that urban unemployment seems to be rising. Explain how these developments might be connected
What will be an ideal response?
Unlimited liability applies
a. to partnerships and sole proprietorships b. only to partnerships c. only to sole proprietorships d. only to corporations e. to corporations and partnerships