Which of the following explains the vicious circle of poverty?
a. By investing in education and infrastructure at the same time, the country can overcome the problems of poverty.
b. Poverty arises out of the lack of investment, but they cannot invest because they are poor.
c. A nation can shift its production possibilities curve inward by shifting more resources into the production of capital goods.
d. A nation can shift its production possibilities curve outward by shifting more resources into the production of consumer goods.
b
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When the economy enters into a recession, your employer is ________ to reduce your wages because ________
A) likely; aggregate demand is vertical in the long run B) unlikely; lower wages reduce productivity and morale C) likely; output prices always fall during recession D) unlikely; output and input prices generally fall during recession
The exchange rate regime that is best for most nations
A) is unclear. B) is fixed exchange rates. C) is floating exchange rates. D) is a mixture of fixed and floating regimes.
Which of the following is a property of a public good?
a. A public good is free from externalities. b. Many individuals benefit simultaneously. c. A public good is not subject to free riders. d. A public good is established by law.
The least costly way to clean up the environment is for all firms to reduce pollution by an equal percentage
a. True b. False Indicate whether the statement is true or false