Why might private investment in poor countries, rather than aid by foreign governments and international agencies, contribute more effectively to economic growth?
A) Private investment is more consistent with central economic planning.
B) Technical assistance is often part of the private investment package.
C) Private investment is always selfish.
D) Private investors are smarter and more street-wise than public authorities.
B
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What type of business has the potential for double taxation of profits and why?
What will be an ideal response?
A point inside the production possibilities curve illustrates a situation in which resources are not fully employed
a. True b. False
In a circular flow diagram of the economy, households and businesses interact
a. in both product markets and resource markets b. in neither product markets and resource markets c. in product markets but not resource markets d. in resource markets but not product markets e. very rarely
If someone produced too much of a good, this would suggest that
A. the good was produced to the point where its marginal benefit exceeded its marginal cost. B. certain goods and services such as education and health care are inherently desirable and should be produced regardless of costs and benefits. C. rational choice cannot be applied to many economic decisions. D. the good was produced past the point where its marginal cost exceeded its marginal benefit.