If the minimum price of plums (high-quality) decreases, the market will become thinner.
Answer the following statement true (T) or false (F)
False
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The principle economic cost of growth is
A. higher inflation rates. B. higher interest rates. C. investment in stocks and bonds. D. current consumption sacrificed for capital formation.
A negative externality can be internalized by
A. persuasion. B. the imposition of a tax. C. the assignment of property rights. D. a voluntary agreement. E. all of the above
Suppose you are a famous international economic advisor. You have been asked to asses the possibilities for growth in an African country. It is a country abundant in labor and some natural resources. The capital-to-labor ratio is low. It has a free
market economy. You have found that this country does not have a very strong and healthy banking system, however the political system is stable and the government does a good job protecting property rights. Assess this country's prospects for growth. Recommend two things that would enhance the country's growth. What will be an ideal response?
A decrease in the Z factors represents
A. a contractionary fiscal policy. B. an easing of monetary policy. C. a tightening of monetary policy. D. an expansionary fiscal policy.