Assume that you are in charge of an agrarian colony of an European nation. What are the different extractive policies which can be adopted to maximize the wealth of the home nation?
What will be an ideal response?
a) One of the first steps that can be undertaken to extract from the colony is to capture the home market. This can be done easily. Exporting cheaper manufactured goods to the colony will hel
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Payments to a factor of production in excess of the minimum payments necessary to call it into existence constitute
a. consumers' surplus b. rent c. a golden parachute d. an efficiency wage
Purchasing power parity shows how many units of currency are needed in one country
a. to equate its gross domestic product to the gross domestic product of another country. b. to equate its gross domestic product and its gross national product. c. to buy the same amount of output that one unit of currency buys in another country. d. to equal total purchasing power in another country.
High-school athletes who skip college to become professional athletes
a. obviously do not understand the value of a college education. b. usually do so because they cannot get into college. c. understand that the opportunity cost of attending college is very high. d. are not making a rational decision since the marginal benefits of college outweigh the marginal costs of college for high-school athletes.
Capital is _______________
A. the crucial element in every economic system. B. the key to every society's standard of living. C. the result from savings. D. All of these statements describe capital.