Explain why the LDCs are unable to invest much in capital goods and human capital.
What will be an ideal response?
The demands of the growing populations in these countries force them to devote most of their resources to the production of consumption goods, and not enough to the production of capital goods or human capital.
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Suppose an economy has the following characteristics: 100 people in the noninstitutional population; 40 people employed; 50 people not in the labor force. What's the unemployment rate?
A) 10 percent B) 15 percent C) 20 percent D) 40 percent E) 50 percent
Which of the following is classified as a liability for a commercial bank?
A) Reserves B) Commercial loans C) Demand deposits D) Deposits with the Federal Reserve
Tobacco prices fell dramatically in the early 1600s in spite of demand increases because:
a. supply was also increasing. b. supply was decreasing. c. new farming machinery was introduced. d. the colonial government provided agriculture subsidies for tobacco farmers.
Bondholders and stockholders
A) never in agreement. B) are always in agreement. C) can disagree at times. D) never really interact.