Many developing countries have a static comparative advantage in the production of one or two primary products. In what ways might specialization in these products contribute to growth and development? In what ways might this fail to contribute?
What will be an ideal response?
Calls for a discussion of short and long run effects as in the text.
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If a student achieves a high SAT score, this
A) sends a signal to a college that the applicant will be a good college student. B) does not act as a screening device. C) is a moral hazard. D) provides a college with no information.
The "deadweight loss" from a monopoly refers to:
a. the portion of a monopolist's profits that are above the competitive profit level. b. the increase in price due to the monopolization of a market. c. the inefficient use of factors of production by a monopoly. d. the loss of consumer surplus due to the monopolization of a market that is not transferred to another economic actor.
It is possible to purchase diplomas from diploma mills. The situation in which the degrees are more important than the knowledge they are supposed to represent is called:
A. accreditation. B. credentialism. C. cretinism. D. diplomacy.
The issue of the separation of ownership and control is concerned with the fact that:
A. many small proprietorships are actually controlled by large corporations. B. major decisions in large corporations are generally made by professional managers rather than the owners of the corporation. C. most farms are owned by landlords who do not live on the farms. D. politicians pass laws to control corporations, but since corporations cannot vote, they cannot protest such control.