Which of the following can be categorized as multilateral aid?
a. The U.S. providing funds to Haiti
b. World Bank providing financial assistance in the form of flood relief funds to Brazil
c. Pakistan requesting financial assistance for earthquake relief from the developed world
d. France promising funds to the Philippines against duty-free imports of French products
e. USAID relieving Nepal of the outstanding debt the latter owes to the organization
b
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Briefly describe how imports and taxes affect the size of the expenditure multiplier
What will be an ideal response?
Marginal productivity theory implies that in a perfectly competitive market economy, a worker will receive income
A) that is less than the value of her marginal contribution to the production process. B) equal to the value of her marginal contribution to the production process. C) that is greater than the value of her marginal contribution to the production process. D) greater than, less than, or equal to the value of her marginal contribution to the production process, depending on her ability to negotiate with employers.
Rocket Energy Drink Company buys sugar to produce energy drinks. At the end of a quarter both its inventory of sugar and its inventory of energy drinks has increased. Investment for the quarter will include
a. both the increased inventory of sugar and the increased inventory of energy drinks. b. the increased inventory of sugar, but not the increased inventory of energy drinks. c. the increased inventory of energy drinks, but not the increased inventory of sugar. d. neither the increased inventory of sugar nor the increased inventory of energy drinks.
Despite its status as one of the richest countries in the world, Japan
a. has a very low level of productivity. b. has few natural resources. c. has very little human capital. d. engages in a relatively small amount of international trade.