If a nation is going to achieve and sustain a high rate of economic growth, it must
A) have a mechanism capable of attracting savings and channeling them into wealth-creating projects.
B) prohibit low-wage foreign producers from supplying goods to the domestic market.
C) have an abundant domestic supply of low cost energy resources.
D) impose regulations that will limit the intensity of competition among domestic firms.
A) have a mechanism capable of attracting savings and channeling them into wealth-creating projects.
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On the supply curve:
A. quantity goes on the horizontal axis and price goes on the vertical axis. B. quantity goes on the vertical axis and price goes on the horizontal axis. C. both quantity and price go on the horizontal axis. D. it doesn't matter which axis price and quantity are placed on.
The oldest theory of comparative advantage is based on:
a. factor abundance. b. productivity differences. c. product life cycles. d. preferences. e. human skills.
Assume that the expectation of a recession next year causes business investments and household consumption to fall, as well as the financing to support it. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the GDP Price Index and current international transactions balance in the context of the Three-Sector-Model? a. The GDP Price Index
falls and current international transactions balance becomes more positive (or less negative). b. The GDP Price Index and current international transactions balance remain the same. c. The GDP Price Index falls and current international transactions balance remains the same. d. Real GDP falls and nominal value of the domestic currency rises. e. There is not enough information to determine what happens to these two macroeconomic variables.
An economist observes that a monopolist does not take full advantage of its market power. She concludes that the firm may not do so because it might not be fair. This economist is most likely to be a(n):
A. engineering economist. B. irrational economist. C. traditional economist. D. behavioral economist.