A key element in outward-looking development policies is to maintain open markets so that internal prices reflect world prices
Indicate whether the statement is true or false
TRUE
You might also like to view...
An economy that trades freely with the rest of the world is called a(n) ________ economy
A) command B) communist C) closed D) open
A technology shock could have a different impact than a natural catastrophe because ________
A) the former would likely lower TFP and the latter raise labor productivity B) the former would likely lower output and the latter raise production C) the former would likely raise output and the latter would raise TFP D) the former would likely lower labor productivity and the latter would lower TFP E) the former would likely raise TFP and the latter would curtail production
The short-run aggregate supply curve slopes upward because: a. firms normally can purchase some inputs at prices that are temporarily fixed in the short run. b. firms seek maximum profits and always try to increase output in the short run
c. firms purchase inputs that increase in price as the price level rises in the short run. d. All of the above are correct.
Which of the following is not an example of an externality?
a. Drunk drivers raise everyone's auto insurance premiums. b. The price of lumber increases as lumberjacks' wages increase. c. The neighbor's beautiful front yard increases your home value. d. Someone drives a car that emits thick black smoke. e. People who live near a bakery enjoy the smell of freshly baked bread.