The rapid growth rates of less developed countries (LDCs) after adopting institutions and policies more favorable to economic freedom and voluntary exchange is not surprising when one considers that
a. LDCs can emulate and borrow successful practices and technologies from other, more developed nations.
b. foreign aid payments to a less developed country are nearly always expanded rapidly when the country begins to increase its income level.
c. the governments of LDCs play a larger role in economic planning, when economic freedom rises.
d. economic theory indicates that improvements in institutions normally result from economic growth, rather than growth stemming from better institutions.
A
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The fact that interest groups exist on both sides of an issue mean that _____
a. no special interest group gets everything it wants b. rational ignorance is nonexistent c. a prisoner's dilemma exists d. politicians are exposed to all viewpoints on an issue
Automatic stabilizers will shift the government budget toward
a. a surplus during both expansions and contractions. b. a deficit during both expansions and contractions. c. a surplus during an expansion and a deficit during a contraction. d. a surplus during a contraction and a deficit during an expansion.
If a savings account pays 5 percent annual interest, then the rule of 70 tells us that the account value will double in approximately 14 years
a. True b. False Indicate whether the statement is true or false
Stagflation can be defined as a combination of ____.
A. economic migration and inflation B. economic aggregation and deflation C. economic stagnation and inflation D. economic aggregation and inflation