Political instability is an impediment to development mainly because it:
A. undermines both domestic and foreign investment in a developing country.
B. creates cultural and social differences among groups in developing countries.
C. produces excessive levels of domestic saving.
D. redistributes income.
Answer: A
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Creative destruction:
A) leads to the benefit of all economic agents. B) is more likely in an economy with extractive institutions. C) leads to losses of all economic agents. D) is more likely in an economy with inclusive institutions.
According to Okun's Law, if the unemployment rate decreased by 1.75% over a year, the annual growth rate of real GDP was ________
A) 6.5% B) 1.75% C) 3.5% D) 5%
Assume the demand function for a particular good can be written as P = 150 - 6Q. When P = 12, the point elasticity of demand equals 2.08
Indicate whether the statement is true or false
According to Shepherd, which of the following represent a primary cause of the rising competitive trend in U.S. industries between 1958 and 2000?
a. Collusion b. Regulation c. Antitrust policy d. Mergers