Answer the following questions true (T) or false (F)
1. Developing countries with large informal sectors tend to have firms that invest less in capital equipment.
2. If income is unequally distributed in an economy, increases in GDP may not raise well-being in an economy.
3. Real GDP per capita is calculated by dividing the value of real GDP for a country by the country's adult population.
1. TRUE
2. TRUE
3. FALSE
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If additional information is not used when forming an optimal forecast because it is not available at that time, then expectations are
A) obviously formed irrationally. B) still considered to be formed rationally. C) formed adaptively. D) formed equivalently.
The competitive equilibrium determines the absolute price of each of the goods based on the endowments and marginal rates of substitution
Indicate whether the statement is true or false
The government provides public education because
A) public education is a public good. B) public education is non-rival and nonexclusive. C) private education is rival and exclusive. D) public education combats the negative externalities of private education. E) public education provides positive externalities.
When firms cooperate with each other rather than compete:
A. consumers will end up better off. B. the firms will end up better off. C. both consumers and firms end up better off. D. they will agree to set low prices to help each other out.