How have government inefficiencies contributed to the creation of dead capital in the world's developing nations?
What will be an ideal response?
Governments in developing nations place obstacles in the way of entrepreneurs interested in owning capital goods and directing them to profitable opportunities. Poorly administered government regulations reduce investment in new capital goods. Because of the poor administration investors are unwilling to risk having their investment turn into dead capital.
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When many substitutes exist for a good, demand will be
A) elastic. B) unit-elastic. C) inelastic. D) perfectly unit-elastic.
If it takes $1 to buy 100 yen, then the exchange rate ______.
a. is 100 yen per $1 from the U.S. perspective and is $1 per 100 yen from the Japanese perspective b. is $100 per 1 yen from the Japanese perspective and is $1 per 100 yen from the U.S. perspective c. is $1 per 100 yen from the U.S. perspective and is 1 yen per $0.01 from the Japanese perspective d. is $1 per 100 yen from the Japanese perspective and 100 yen per $1 from the U.S. perspective
A decrease in demand is shown graphically by a:
a. Downward movement along the demand curve b. Decrease in the cost of production c. Movement up along the demand curve d. Shift of the demand curve to the left
A U.S. boycott against Mexican tuna caught in nets was
A) not upheld by the WTO on the grounds that killing dolphins in tuna nets does not harm the United States directly. B) not upheld by the WTO on the grounds that U.S. ships could still use nets to catch tuna. C) upheld by the WTO on the grounds that the use of nets to catch tuna also kills dolphins. D) upheld by the WTO on the grounds that nations can impose any environmental standards on other nations.