The necessary ingredients for economic growth and poverty reduction are no mystery, really: education, favorable and efficient institutions, research and development, etc. Macroeconomists are unlikely to have anything useful to say. Comment
What will be an ideal response?
The ingredients are familiar, but implementation is difficult. Citizens, politicians, and policymakers face tough decisions, because each ingredient has costs; resources devoted to education, for example, must mean sacrificing other worthy expenditures, such as health care. Macroeconomists can help to quantify the relative effectiveness of particular expenditures and policy packages, so that scarce resources are utilized efficiently. Analysis and clarification of the details can help in the design of and to generate public support for the most effective policies.
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If the government provides a subsidy to producers, what is the effect of this policy in a supply and demand diagram?
A) The demand curve shifts leftward and the price rises. B) The supply curve shifts rightward and the price falls. C) The supply curve shifts leftward and the price falls. D) The supply curve shifts leftward and the price rises. E) The demand curve shifts rightward and the price rises.
Regarding costs, accountants _____; economists _____
a. identify stable and predictable costs for decision-making purposes; measure costs for financial reporting purposes b. identify stable and predictable costs for financial reporting purposes; measure costs for decision making purposes c. do not include opportunity costs; include opportunity costs d. include opportunity costs; do not include opportunity costs e. both b and c f. both a and d
Avenues for the government to foster economic growth and development include the following, except:
A. Nationalization and protection of domestic industries B. Establishing the rule of law and protection of property rights C. Building infrastructure and technological support D. Building human capital and entrepreneurship
If the price of a good increases, all else the same, then the consumer's total utility will
A) increase. B) decrease. C) remain the same as consumption shifts to cheaper goods. D) decrease if there are no substitutes for the good and remain the same if there are substitutes for the good.