Which of the following provides the best explanation of why low-income countries generally remain poor?
A. Their political environment and policies often discourage productive activity and reduce the potential gains from specialization and exchange.
B. They are oppressed by developed nations that benefit from the cheap goods available from countries with low wage rates.
C. They are poorly endowed with natural resources, which are essential for long-term rapid growth.
D. When the average income level is low, workers have little incentive to earn higher incomes.
Answer: A
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Your textbook authors argue that the redemption efforts to free Sudanese slaves
A) generally succeeded until the government stepped in and created unintended shortages. B) worked poorly because slave surpluses became rampant. C) unintentionally increased profitability and slave supply. D) proved that underground markets do not coordinate the plans of participants.
Suppose the production of a good results in positive externalities. If output occurs at the intersection of the marginal social benefits curve and the supply curve, then
A. output will be at the socially optimal level. B. the price of the product will be the same as it was when all benefits were not taken into account. C. more output will be produced than if all benefits were not taken into account. D. a and c E. a, b, and c
The quantity of labor supplied is determined by the:
A. number of firms. B. opportunity cost of providing labor. C. marginal product of labor. D. technology.
Firms pay out a portion of their earnings in the form of interest and dividends, and those payments are a portion of the economy's capital income
a. True b. False Indicate whether the statement is true or false