Which of the following would be most likely to improve the standard of living of the residents of a less-developed country?
A. the development of strong labor unions
B. a sharp increase in the legal minimum wage
C. an increase in expenditures on education and capital investment
D. rapid growth rate of the money supply
Answer: C
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Assume that supply decreases greatly and demand decreases slightly. Which of the following will happen?
a. Equilibrium price will fall and equilibrium quantity will rise. b. Equilibrium price will rise and equilibrium quantity will fall. c. Equilibrium price will rise and equilibrium quantity will rise. d. Equilibrium price will fall and equilibrium quantity will fall. e. Neither equilibrium price nor equilibrium quantity will change.
An increase in the inflation rate of one country relative to another country will probably cause
A. an increase in the amount of official reserves held by the inflating country's central bank. B. a balance of trade deficit for the inflating country. C. a current account surplus for the inflating country. D. an increase in exports for the inflating country.
There is 5% average tax on imported goods in the United States. This tax is known as a(n) ________.
A. tariff B. sales tax C. quota D. income tax
Assuming that resources are specialized, the opportunity cost of an item increases as the production of it rises. This implies that firms will produce more as
A. the price increases. B. the price decreases. C. the opportunity cost is greater than the price. D. government asks firms to produce more. E. the income of buyers increases.