Which of the following provides the best explanation of why low-income countries generally remain poor?
a. Their political environment 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 rapid growth.
d. When the average income level is low, workers have little incentive to earn higher incomes.
a
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Refer to the figure above. What is the initial equilibrium quantity of the good?
A) 20 units B) 30 units C) 35 units D) 50 units
Which of the following statements is false?
A) At equilibrium in a market, scarcity does not exist. B) If there is a shortage of 100 units at a price of $2 per unit, the shortage will be greater than 100 units at a price of $1 per unit. C) If there is a surplus of 30 units at a price of $3, the surplus will be less than 30 units (or even nonexistent) at a price of $2. D) If there is a surplus, suppliers will not be able to sell all they had hoped to sell at a particular price.
Use the following general linear demand function below: Qd = a + bP + cM + dPRwhereQd = quantity demanded, P = the price of the good, M = income, PR = the price of a good related in consumption.For the general linear demand function given above
A. d is the effect on the quantity demanded of the good of a one-dollar change in the price of the related good, all other things constant. B. b is the effect on the quantity demanded of the good of a one-dollar change in the price of the good, all other things constant. C. ?Qd / ?M = c. D. all of the above
The MPC can be defined as the:
a. Change in income divided by the change in consumption b. Ratio of income to saving c. Change in consumption divided by the change in income d. Ratio of saving to consumption