Would one expect economic growth to be higher or lower in a country that had poorly defined property rights? Why?
What will be an ideal response?
Lower, because entrepreneurs are more likely to engage in entrepreneurial activity when property rights allow them to capture the rewards from these activities. Further, innovation is more likely when there are property rights on ideas.
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Since the 1950s,
A) U.S. business cycle fluctuations have becomes more volatile. B) U.S. business cycle fluctuations have not changed. C) U.S. business cycle fluctuations have become milder. D) the United States has not experienced a business cycle.
Which of the following is a not direct result of scarcity?
A. Buildings in New York City are taller than buildings in Greenville, SC due to fewer acres of land per person. B. Due to high gas prices, Shana decides to trade her Chevy Tahoe for a Honda Accord. C. A college student misses a test review in order to sleep in. D. The total amount of air we can breathe as others draw breaths from that same air space.
Using the growth accounting equation, if the growth rate of technology is 3%, the growth of labor is 2% and the growth of capital is 1% then if α=0.75 then growth of output can be estimated to be:
A. 4.25%. B. 4.00%. C. 6.00%. D. 4.75%.
If the U.S. dollar depreciates relative to the euro, then:
A. American goods will be more expensive for Germans B. German goods will be less expensive for Americans C. The euro will appreciate relative to the dollar D. The euro will depreciate relative to the dollar