Some low-income countries generally remain poor because
a. their institutional arrangements and policies often discourage productive activity and reduce the potential gains from specialization and exchange.
b. they are oppressed by developed nations that benefit from the cheap goods available from countries with low wage rates.
c. they are poorly endowed with natural resources, which are essential for long-term growth.
d. when the average income level is low, workers have little incentive to earn higher incomes.
A
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The graph below represents the market for lychee nuts. The equilibrium price is $7.00 per bushel, but the market price is $5.00 per bushel
Identify the areas representing consumer surplus, producer surplus, and deadweight loss at the equilibrium price of $7.00 and at the market price of $5.00.
A change in supply cannot be caused by a change in:
a. resource prices. b. technology. c. prices of other goods. d. the price of the good itself. e. the number of suppliers.
Suzie Homemaker works in her home as a full-time caretaker and homemaker. Officially, she is: a. employed
b. unemployed. c. not in the labor force. d. a discouraged worker.
If consumers switch away from eating margarine at the same time that the number of margarine suppliers increases, then
a. these two effects cancel each other out and there is no change in the margarine market equilibrium b. the demand curve shifts left and the supply curve shifts right c. there is a margarine price increase d. there is an excess demand for margarine e. the equilibrium quantity of margarine must increase