From an economist's perspective, why are property rights and the rule of law so important for economic development?
A. They create incentives and stability for economic growth and development.
B. They discourage all criminal activity that encourages economic growth and development.
C. They provide a creative environment that encourages economic growth and development.
D. They prevent other countries from benefiting from trade, which helps our economic growth and development.
Answer: A
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Based on the figure above, which of the following factors could lead the supply curve to shift rightward from S0 to S2?
A) a fall in foreign interest rates B) a fall in the U.S. interest rate C) a rise in the U.S. exchange rate D) a fall in the U.S. exchange rate E) a rise in expected future U.S. exchange rate
If the prices of both goods increase by 10 percent, the budget line
A. shifts to the right in parallel fashion. B. shifts to the left in parallel fashion. C. is unaffected since only relative price changes matter. D. pivots on the axis of the more expensive good.
In the Solow growth model, the law of motion of capital takes into account
A) the residential nature of houses. B) the mobility of capital. C) the depreciation of old capital. D) the cost of shipping and installing capital.
Many regional trade agreements include other provisions that are not part of the treaty, but they are add-ons that might be important to trade issues. These are called:
a. addenda. b. side agreements. c. environmental pacts. d. worker rights documents.