Across national economies which of the following is the most important source of variation in growth rates?
A) labor growth
B) capital growth
C) productivity growth
D) government regulation
C
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Tracy and Amy are playing a game in which Tracy has the first move at X in the decision tree shown below. Once Tracy has chosen either the top or bottom branch at X, Amy, who can see what Tracy has chosen, must choose the top or bottom branch at Y or Z. Both players know the payoffs at the end of each branch. 
If before Tracy chose, Amy could make a credible commitment to choose either the top or bottom branch when her turn came, then Amy would commit to the ________ branch and Tracy would choose the ________ branch.
A. top; top B. top; bottom C. bottom; bottom D. bottom; top
Because borrowers, once they have a loan, are more likely to invest in high-risk investment projects, banks face the
A) adverse selection problem. B) lemon problem. C) adverse credit risk problem. D) moral hazard problem.
Consider a small open economy with desired national saving of Sd = 1000 + 1000rw and desired investment of Id = 1000 - 500rw. Calculate national saving, investment, and the current account balance in equilibrium when the real world interest rate is
(a) rw = 0.025. (b) rw = 0.05. (c) rw = 0.0.
Which statement is true?
A. Natural monopolies may occur in theory, but there are virtually no actual examples in today's economy. B. All forms of a monopoly are illegal in the United States. C. Many public utilities are natural monopolies. D. None of these statements are true.