Economies with poorly defined property rights are often inefficient because
a. individuals spend time trying to protect their resources
b. there are no voluntary exchanges
c. all exchanges are voluntary
d. there are no side payments
e. of the absence of free riders
A
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The Bureau of Labor Statistics places people in the "employed" category if they
a. are temporarily absent from their jobs. b. are self-employed. c. work without pay in a family member's business. d. All of the above are correct.
Externalities require government intervention when
A. violence will result between disputing parties. B. there are only a few sellers in the market. C. property rights are not clearly established. D. the government imposes sales taxes. E. all of these answer options are correct.
If the spot rate for euros depreciates, and all other variables and expected values remain constant, U.S. investors contemplating European investments would:
a. get larger returns in terms of dollars. b. get smaller returns in terms of dollars. c. get very similar returns because of arbitrage. d. lose the principal of the investment.
In an article regarding Bangladesh's economy, the author suggests that the government give tax breaks on investment dollars, research and development, and donations to educational institutions. The increase in investment is considered __________ and will generate a larger increase in __________.
a) equilibrium spending; autonomous expenditure b) autonomous expenditure; induced expenditure c) induced expenditure; autonomous expenditure d) autonomous expenditure; multiplier spending