What is the likely reason for the Industrial Revolution to have started in Britain and not somewhere else?
What will be an ideal response?
The primary reason for why the Industrial Revolution started in Britain is that institutions in Britain were inclusive. Britain had a well-developed market system with private property rights. This improved profitability of businesses, and encouraged entrepreneurs to innovate. Britain also had a patent system that allowed the inventors of new technologies to protect their property rights not only in tangible assets but also in ideas. These institutional features of the British society were the key prerequisites for the industrial revolution.
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In which of the following areas were substantial New Deal reforms NOT made?
a. The commercial banking system. b. The Federal Reserve System. c. Securities markets. d. Corporate accounting standards.
Which of the following is most likely correct about economists?
a. Economists do not determine the answer to the problem first and then draw the graph to illustrate. b. Economists do not use the graph of the theory to determine the answer. c. Economists determine the answer to the problem first and then draw the graph to illustrate. d. Economists identify multiple potential answers and then graph each one to determine the correct answer.
It is possible for the economy to be producing at a point that lies beyond its institutional production possibilities frontier (PPF), but not its physical PPF
Indicate whether the statement is true or false
In a cartel,
a. all firms produce the same amount of output and earn the same profit b. all firms produce the same amount of output but earn different amounts of profit because their costs differ c. firms produce different amounts of output but earn the same profit d. firms with higher average cost produce more so that all firms earn the same profit e. firms with lower average cost often earn higher profits