Which of the following is not an argument in favor of inward-oriented strategies?
a. A newly developing economy needs protection from foreign competition.
b. Government restrictions are necessary to maximize the rate of economic growth.
c. Deteriorating prices of primary products in relation to manufactured goods expose developing countries to increasingly unfavorable terms of trade.
d. Developing countries should compete on the basis of comparative advantage.
e. Economic growth requires rapid industrialization and a shift away from primary products.
d
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What are the problems that arise when a commodity is used as money?
What will be an ideal response?
In general, banks make profits by selling ________ liabilities and buying ________ assets
A) long-term; shorter-term B) short-term; longer-term C) illiquid; liquid D) risky; risk-free
If the economy were producing at point C and moves to point B
Hypothetical Production Schedule for a Two-Product Economy
A. 4 units of capital goods are gained, while the capacity to produce 32 consumer goods are lost.
B. 16 units of capital goods are gained at an opportunity cost of producing 40 consumer goods.
C. 16 units of capital goods are gained at an opportunity cost of producing 72 consumer goods.
D. 4 units of capital goods are gained, while the capacity to produce 72 consumer goods are lost.
Consider the two options in the following table, both of which have random outcomes:
a. Determine the expected value of each option.
Expected value of Option 1: $ 450
Expected value of Option 2: $ 450