A legal system that protects private property and enforces contracts in an even-handed manner helps promote economic growth because it
What will be an ideal response?
provides people with a strong incentive to supply others with things that they value at an economical price
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Which of the following caused pre-1984 volatility in residential construction?
A) financial regulations B) tax cuts C) currency volatility D) interest rates
In an attempt to boost enrollment, in January 1996, a private college in Iowa offered free tuition for seniors graduating from high school in the county where it is located. For students who accept the offer, how does this offer affect the opportunity cost of attending college?
a. The opportunity cost is not changed, since lost earnings are still a factor. Incorrect. Please review Top Ten Concept # 1. b. The opportunity cost is now zero for the typical student. c. The opportunity cost is very low, because the only cost is for books and school supplies. d. The opportunity cost is not changed, since tuition is not a factor in computing opportunity cost. e. The opportunity cost is lower than if tuition were charged, but there is still a cost.
How is per capita GDP affected by GDP growth and population growth?
What will be an ideal response?
Given data on capital (K), labor (N), and output (Y), and estimates of capital's share of output (a), the Solow residual is measured as
A. Y / (KaN1-a) B. Y KaN1-a C. (Y Ka) / N1-a D. 1/(Y KaN1-a)