Discuss natural resources and whether they are necessary for economic growth. Choose a country with or without plentiful natural resources and briefly discuss how this has impacted its growth.
What will be an ideal response?
, but students should demonstrate an understanding of the role of natural resources in economic development and growth. They should note that a lack of natural resources is generally considered to be a major obstacle to growth, particularly initial development, but sustained growth is heavily influenced by other factors. For example, students might explain that Canada has abundant timber and mineral resources. These helped spur Canada’s rapid early development into one of the wealthiest countries in the world, but while the resources are still present, Canada’s growth has slowed down in more recent years.
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A good example of central planning at work in the U.S. is:
A. McDonald's fries being the same everywhere. B. New York City's rent control program. C. car manufacturers establishing suggested retail prices. D. unions working with businesses to establish wages.
Politicians have suggested that the budget deficit could be reduced by
A) increasing taxes and reducing expenditures. B) lowering the interest rates. C) imposing higher tariffs on imported goods. D) forbidding interest payments on government bonds outsourcing.
Economic analysis indicates that environmental quality
a. is something that people value, and therefore are willing to pay for. b. should always be regulated by the government. c. is something people should be forced to pay for no matter what their income levels. d. is not important to most people.
Assume that business investment spending rises, and the increase is funded by greater borrowing in the capital markets. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the real GDP and current international transactions balance in the context of the Three-Sector-Model? a. Real GDP falls and current international transactions balance
becomes more negative (or less positive). b. Real GDP rises and current international transactions balance becomes more negative (or less positive). c. Real GDP and current international transactions balance remain the same. d. Real GDP rises and current international transactions balance remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.