Explain the extensive economic role of government within a developing country
What will be an ideal response?
An open question. Students should include 2 of the following in their answer along with discussion:
(1 ) Restrictions on international trade
(2 ) Government control over large industrial firms
(3 ) High level of government consumption as a share of GNP
(4 ) Strict management of exchange rates; limit exchange rate flexibility
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Refer to the table above. If consumption expenditure increases to $200,000 in the next year, ________, all other variables remaining unchanged
A) gross domestic product will fall to $367,000 B) gross domestic product will increase to $367,000 C) gross domestic product will increase to $400,000 D) gross domestic product will fall to $400,000
Compared to the no-trade situation, when a country imports a good,
a. domestic consumers gain, domestic producers lose, and the gains outweigh the losses. b. domestic consumers lose, domestic producers gain, and the gains outweigh the losses. c. domestic consumers gain, domestic producers lose, and the losses outweigh the gains. d. domestic consumers gain, but domestic producers lose an equal amount.
The data on hyperinflation show a clear link between the quantity of money and
a. the price level. b. growth rate of GDP. c. unemployment rate. d. velocity.
Suppose there is new fertilizer technology which allows avocados to be grown using less water, how might this affect the market for avocados?
A. Price decreases and quantity increases B. Price increases and quantity increases C. Price decreases and quantity decreases D. Price increases and quantity decreases