High rates of saving and investing in the private sector promote economic growth by:
A. increasing human capital.
B. improving technology.
C. improving the social and legal environment.
D. increasing physical capital.
Answer: D
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Diseconomies of scale refers to when in the long run:
A. an increase in the quantity of output decreases average total cost. B. an increase in the quantity of output increases average total cost. C. average total cost does not depend on the quantity of output. D. None of these is true.
If a 10 percent change in the price of a good caused a 10 percent change in the quantity demanded of the good, we would say that over this range of prices the good has a(n)
A) elastic demand. B) inelastic demand. C) perfectly elastic demand. D) unit elasticity of demand.
Analysts that favor a fast transition to market economies argue that China's success with a gradual transition is a special case because
A) its trade flows were relatively large. B) so much of its labor force was in agriculture. C) heavy industry already had a strong foothold when the transition began. D) its coastal areas were already relatively well developed. E) its labor force was relatively well educated.
If the relationship between the monetary aggregate and the goal variable is weak, then
A) monetary aggregate targeting is superior to exchange-rate targeting. B) monetary aggregate targeting is superior to inflation targeting. C) inflation targeting is superior to exchange-rate targeting. D) monetary aggregate targeting will not work.