Which of the following would be most likely to cause the per capita income of less-developed countries to rise?
a. Development of strong labor unions.
b. More rapid population growth.
c. Investment expenditures that enhance the human capital of labor force participants.
d. An international minimum wage law.
c
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People can be excluded from consuming public goods
Indicate whether the statement is true or false
Which of the following best describes Keynes’ argument about the economy?
a. He argued the economy often produced less than its full potential because it was technically impossible to produce more with the existing workers and machines. b. He argued the economy often produced less than its full potential, not because lack of demand in the economy as a whole led to inadequate incentives for firms to produce, but because it was technically impossible to produce more with the existing workers and machines. c. He argued the economy often produced less than its full potential, not because it was technically impossible to produce more with the existing workers and machines, but because a lack of demand in the economy as a whole led to inadequate incentives for firms to produce. d. He argued the economy often produced less than its full potential because it was technically impossible to produce more due to inadequate incentives for firms to produce.
An economy that is currently producing a gross domestic product worth $200 million but is capable of producing an output worth $180 million at full-employment equilibrium would have a(n):
a. recessionary gap of $50 million. b. expansionary gap of $20 million. c. recessionary gap of $30 million. d. expansionary gap of $40 million.
Someone who values a lottery at more than the expected value is
a. a risk lover b. risk neutral c. risk averse d. one who tends to play lots of lotteries