The measured capital stock in developed countries
a) overestimates real capital growth because capital prices have risen dramatically in recent years
b) underestimates real capital growth because machines have become more powerful and less expensive
c) overestimates real capital growth because the manpower needed to operate new machines in greater than in previous years
d) underestimates real capital growth because it does not include financial investments
e) overestimates real capital growth because it includes government consumption expenditures
b) underestimates real capital growth because machines have become more powerful and less expensive
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________________: the practice of exchanging favors, especially in politics by reciprocal voting for each other's proposed legislation.
Fill in the blank(s) with the appropriate word(s).
Which of the following is a gain from trade?
A. A level of self-sufficiency for all trading countries. B. A higher price level for all trading countries. C. A shorter workweek for all trading countries. D. A higher standard of living for all trading countries.
Foreign exchange market intervention refers to:
a. actions taken by speculators to increase profits from trading. b. actions taken to lower currency trading risks and make the markets safer. c. the forgiving of penalties and other punishments for illegal foreign exchange activities. d. government purchases or sales of a nation's own currency in international markets to change or stabilize the value of the currency.
The philosopher John Rawls argued that if people could make arrangements about how society would be organized before they were born that one of the principles that we would agree upon is that social and economic inequalities are to be arranged so
that they are to be of the greatest benefit to the least-advantaged members of society. What economic strategy sounds akin to this idea? Explain.