In most developing countries, an effective fiscal policy is:
A. easier to conduct than in developed economies, because there are fewer institutional checks and balances.
B. harder to conduct, because fiscal policy is discretionary in developing countries, unlike developed countries.
C. easier to conduct than in developed economies, because politicians tend to be more socially-minded.
D. harder to conduct, because taxes are difficult to collect.
Answer: D
You might also like to view...
How do the owners of a partnership relate to the business?
A) The owners and the business are separate legal entities. B) The owners and the business are not separate legal entities. C) The assets of the owners are considered separate from the asset of the business. D) None of these describe the legal relationship of the owners to the business.
Why is it unlikely that expansions could be explained by a decrease in labor demand in the classical model?
a. It would be hard to say why productivity decreases. b. Productivity increases are too fast and variable to explain expansions. c. Productivity tends to improve at a constant and steady rate. d. Only unexplained spending changes can lead to changes in output and employment, not the other way around. e. Productivity improvements are rather slow.
If an industry exhibits economies of scale, one larger firm may be able to produce goods at a lower long-run average cost than two smaller firms
a. True b. False Indicate whether the statement is true or false
An antidrug policy that reduces the supply of heroin might:
A. increase street crime because the addict's demand for heroin is highly inelastic. B. reduce street crime because the addict's demand for heroin is highly elastic. C. reduce street crime because the addict's demand for heroin is highly inelastic. D. increase street crime because the addict's demand for heroin is highly elastic.