When a nation's institutional environment is more favorable, it will
a. attract more physical investment.
b. encourage individuals to invest more heavily in human capital.
c. encourage the development and efficient use of natural resources.
d. all of the above.
D
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Which of the following events did not contribute to the high rate of bank failures in the 1980s and 1990s?
a. The collapse of the communist world, principally Russia; because of the collapse,they could not pay off their loans to U.S. banks b. Falling farm prices in the U.S. c. Bad loans to Mexico d. An unexpected slide in oil prices e. Falling agricultural land values
When the federal government spends more money than it receives in __________, it creates a need to borrow money, which may be fulfilled internationally and impacts the nation’s trade balance.
a. taxes b. sales c. interest d. income
Suppose that an individual sees a tremendous opportunity to produce and sell a new product but dismisses the idea because there is no way to exploit this opportunity for personal gain. This situation best identifies the:
A. coordination problem under communist central planning. B. self-sufficiency dilemma under communism. C. asymmetric information problem under communism. D. incentive problem under communist central planning.
Refer to the given data. The United States' balance of capital and financial account is a:
The following table contains hypothetical data for the 2012 U.S. balance of payments. Answer the question on the basis of this information. All figures are in billions of dollars.
A. surplus of $5.
B. deficit of $10.
C. surplus of $25.
D. deficit of $5.