Countries with a low standard of living have low levels of total factor productivity. List 5 reasons that account for the low levels of total factor productivity
What will be an ideal response?
1. lack of investment in research and development
2. low quality of labor from low investment in education
3. government institutions that do not protect private property and that discourage investment
4. geography that makes trade difficult or makes diseases more prevalent
5. a lack of financial institutions that allow funds to flow from firms with profitable investment projects
You might also like to view...
Suppose that your personal valuation for a painting is $200 . Which auction format would induce you to bid more?
a. First price. b. Second price. c. You would bid the same in any format. d. Depends on the environment.
Patents stimulate innovation by
a. providing incentives to incur research and development costs b. guaranteed profits for those who innovate c. prosecuting anyone who purchases the good protected by the patent d. providing tax breaks to investors e. increasing the interest rate on borrowed funds
If all resources were perfectly adaptable for alternative uses, the production possibilities curve would
A) be bowed out. B) be a loop. C) be a straight line. D) not exist.
An increase in the U.S. price level (foreign prices held constant) will cause a leftward shift in the aggregate demand curve
a. True b. False Indicate whether the statement is true or false